Manufactured Housing Landlord-Tenant Laws and Resident Notice in a Park Sale
Residents of a mobile home park are in an unusual position. Many own homes that are difficult and costly to move, yet they rent the land beneath them. Partly for that reason, many states have adopted manufactured housing landlord-tenant laws that apply specifically to parks and communities, separate from general residential rules. These laws can affect leases, rent changes, fees, community rules, evictions, abandoned homes and, in some states, what must happen before a park is sold.
This article is a general overview for buyers and sellers of existing, operating mobile home parks. It is not legal advice. Laws vary significantly by state and locality and change over time, and buyers and sellers should rely on qualified counsel familiar with manufactured housing law where the park is located.
Why These Laws Matter in an Acquisition
A buyer steps into the seller’s relationships with residents. If leases, fees or rent changes do not comply with applicable rules, the buyer may inherit disputes or income that cannot be collected. Lenders may also ask about compliance because it affects the reliability of the park’s income.
Areas Counsel May Review
- Leases and community rules: required terms, disclosures and how rules may be changed
- Rent changes: notice requirements and, in some localities, limits on increases
- Fees and utility charges: what may be charged and how it must be disclosed
- Deposits: how they must be held, accounted for and transferred in a sale
- Evictions and abandoned homes: the procedures that apply under state law
- Home sales by residents: rules on resale of homes in place and the park’s role
- Fair housing: obligations that apply to the park’s operations and advertising
Resident Notice and Opportunity-to-Purchase Rules
Some states require that residents, a resident association or a public body receive notice before a park is sold, and some give residents an opportunity to make an offer or match a proposed sale. Requirements, deadlines and exceptions differ from state to state, and failure to follow them may affect a transaction. Buyers and sellers should ask counsel early whether any such rules apply and build the required steps into the timeline and purchase agreement.
Change of Use or Closure Rules
Some jurisdictions also regulate what happens if a park owner changes the use of the property or closes the park. Even buyers who intend to continue operating the park should understand these rules, because they can affect lender review and future flexibility.
What to Gather in Due Diligence
- All current leases and community rules
- Copies of rent change notices and related correspondence
- Records of resident complaints, disputes and inquiries from public officials
- Eviction and abandoned home files
- Any resident association communications
Our mobile home park due diligence checklist covers the broader review, and our article on the lot rent roll explains how lease compliance connects to income.
Operating Within the Rules After Closing
Compliance does not end at closing. Whoever manages the park will need to follow these rules when collecting rent, enforcing community rules and communicating with residents. See our article on mobile home park management.
For Buyers and Sellers
Buyers should factor any resident notice process into their plan; see our guide on how to buy a mobile home park. Sellers should raise these questions with counsel before marketing the property; see our article on how to sell a mobile home park.
US Professional Funding helps buyers finance the acquisition of existing, operating mobile home parks and works alongside the buyer’s legal and tax advisors. Learn more about our mobile home park acquisition financing.
