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Mobile home parks are predatory. Unlike a traditional home, "owners" own only the home and pay an exorbitant land rent each month. So, unlike a traditional home

by k310 1y ago

Mobile home parks are predatory. Unlike a traditional home, "owners" own only the home and pay an exorbitant land rent each month. So, unlike a traditional home where the land appreciates and you maintain the home, you get in effect, the worst of both worlds. You get zero land equity for rents approaching mortgages (YMMV. They are very high in desirable CA locations.), and still pay to maintain the home. Of course, private equity firms love the idea. Price-fixing among park owners happens. [1] Some comments [2] Pro's and Cons[0] I live in a double-wide manufactured home in the country, and own the land, quite a bit of it (sharpens chain saw ) Spare you the details. [0] https://www.luxwisp.com/pros-and-cons-of-land-lease-communities/ https://www.luxwisp.com/pros-and-cons-of-land-lease-communit... [1] https://www.classaction.org/news/class-action-alleges-mobile-home-community-cos.-conspired-to-raise-lot-rental-prices https://www.classaction.org/news/class-action-alleges-mobile... [2] https://www.reddit.com/r/povertyfinance/comments/s0jh8a/whats_the_catch_with_mobile_manufactured_homes/ https://www.reddit.com/r/povertyfinance/comments/s0jh8a/what...

codeddesign 1y ago
How is this different than owning a house or a condo? A house you still pay property tax on the land. A condo you still pay an association fee. Both of which generally go up continually every year. This is also not a surprise that they don’t own the land. At any time they can move their mobile home, unlike a house or condo. They fully know what they signed up for.
- k310 1y ago
  I pay about $2000 a year for property tax (It's in the boondocks). That's it. A land rent may be a big chunk of that every month. It varies a lot, so run the numbers. A Condo owner owns the land and pays property tax and HOA fees, which can be steep, so there's land appreciation. Why pay so much every month to get zero land equity and zero home maintenance? Run some numbers. I did sometime back. And don't forget, these are microscopic lots. Barely room for a couple of storage shelves under a car awning. The references say that the mobile homes depreciate, so they're not even worth moving, and landlords charge anyway. I linked to very short ones that bring up key issues.
- sgc 1y ago
  The major difference is condominium associations are cooperatives, and mobile home parks are owned by a landlord while you are the tenant. The point that is being made is there's a trend for these landlords to become predatory. In a condominium you are a member in the association that owns the common areas and have a voice. The board is other people who own condominiums there, and will at least try to do things in the best interest of the condominium owners.
m463 1y ago
In california I think these parks are fairly well protected from increases in rent, and the over-age-<nn> parks might be super-cheap. I remember seeing an over-50 park in the bay area was $300/month space rent. But I don't know how change in ownership and/or tricks can figure into things.
- k310 1y ago
  Change in ownership is the magic trick, AFAICT.
robocat 1y ago
> "owners" own only the home and pay an exorbitant land rent each month. So, unlike a traditional home where the land appreciates Isn't this the same as many apartments with body corporates that lease the land they are on? Called "Stratum in Leasehold" in New Zealand (although uncommon except for some inner city - I think because riskier so harder to get a mortgage). Leasehold isn't common for residential in New Zealand AFAIK. And mobile home parks are uncommon too.
- voxic11 1y ago
  But with a lease it's up to the landlord to maintain the property. That's what he is saying you get the downsides of both lease and ownership with none of the upsides.

by k310 1y ago

codeddesign 1y ago

How is this different than owning a house or a condo? A house you still pay property tax on the land. A condo you still pay an association fee. Both of which generally go up continually every year. This is also not a surprise that they don’t own the land. At any time they can move their mobile home, unlike a house or condo. They fully know what they signed up for.

k310 1y ago
I pay about $2000 a year for property tax (It's in the boondocks). That's it. A land rent may be a big chunk of that every month. It varies a lot, so run the numbers. A Condo owner owns the land and pays property tax and HOA fees, which can be steep, so there's land appreciation. Why pay so much every month to get zero land equity and zero home maintenance? Run some numbers. I did sometime back. And don't forget, these are microscopic lots. Barely room for a couple of storage shelves under a car awning. The references say that the mobile homes depreciate, so they're not even worth moving, and landlords charge anyway. I linked to very short ones that bring up key issues.
sgc 1y ago
The major difference is condominium associations are cooperatives, and mobile home parks are owned by a landlord while you are the tenant. The point that is being made is there's a trend for these landlords to become predatory. In a condominium you are a member in the association that owns the common areas and have a voice. The board is other people who own condominiums there, and will at least try to do things in the best interest of the condominium owners.

m463 1y ago

In california I think these parks are fairly well protected from increases in rent, and the over-age-<nn> parks might be super-cheap. I remember seeing an over-50 park in the bay area was $300/month space rent. But I don't know how change in ownership and/or tricks can figure into things.

k310 1y ago
Change in ownership is the magic trick, AFAICT.

robocat 1y ago

> "owners" own only the home and pay an exorbitant land rent each month. So, unlike a traditional home where the land appreciates Isn't this the same as many apartments with body corporates that lease the land they are on? Called "Stratum in Leasehold" in New Zealand (although uncommon except for some inner city - I think because riskier so harder to get a mortgage). Leasehold isn't common for residential in New Zealand AFAIK. And mobile home parks are uncommon too.

voxic11 1y ago
But with a lease it's up to the landlord to maintain the property. That's what he is saying you get the downsides of both lease and ownership with none of the upsides.