Conversion of a mobile home rental park to a community where residents own their dwellings is a complex legal, and lengthy process. For prospective homeowners who have the opportunity to pay into mortgages instead of monthly rent, the benefits may outweigh the drawbacks.
Conversions from rental can take many forms and include:
- Standard subdivisions
- Condominium overlays
- Limited equity housing cooperatives
- Corporate ownership
The conversion process
In subdivisions, the park owner will outright sell the land to the resident who owns the home. Cooperatives, limited equity housing cooperatives, and corporate ownership scenarios will require the resident to buy a share in the corporation.
Little, if anything, will change in the operations of the park. The community will remain intact without the addition of new homes. However, participation in the conversion is purely voluntary. The right still exists to choose the status quo of renting instead of ownership.
The benefits are numerous. Homeowners can form an association that allows them to have a say in their community. In addition, owning any type of real estate is an investment that can grow over time, depending on the market. Those who pursued a loan to purchase their lot can take advantage of tax deductions, provided that they qualify for them.
The conversion process is complicated and lengthy for everyone involved. Add to that the inherent risks of putting hard-earned money into real estate. Protecting the investment may require legal help from a skilled and experienced attorney.