Posted by John Hyre on August 27, 2008 at 00:50:54:
In Reply to: MH dealer's license, rent vs carry note vs L/O posted by Jeff Peisner on August 26, 2008 at 18:00:13:
I personally prefer Lonnie Deals over L/O, even L/O that converts to a note after a year or two. While L/O is better from tax and state licensing standpoints, you are liable as a landlord. Regardless of what is in the lease or option agreements, you are still the landlord on the home and liable as one. I have neither the time nor the desire to landlord on a mobile home (as opposed to landlording on the dirt), much less accept the liability. For example: I am involved in buying a park of very good terms right now.....part of the reason we are getting very good terms is that the owner had a rented MH burn with three people in it. While the legal outcome will likely be a "win" for him, the stress is killing him. Mobile home dwellers tend to be careless (leading to problems for them), litigious & quick to lay blame elsewhere (leading to problems for you) and treated as victims by simpering liberals (leading to more problems for you, the evil landlord). In short, I do not think that the benefits of L/O outweigh the liability.
Sherm's comment is well taken, sometimes notes involve turnover, trashed homes, etc. Just like a landlord, you can take steps to minimize those events, but they will still occur.
John Hyre