The developer is going to put 100 apartments at $1,500 a month on a parcel that held 50 mobile homes. That’s because you can make apartments two and three stories high. Mobile home parks can only exist on on level. No way the park can compete with this income differential and clearly it has to come down.

However, the moral is that residents, governmental agencies and the media need to appreciate that mobile home parks are coming down everywhere and they better do more to make owners not want to redevelop their land.

Here’s probably what a “hot mic” would have heard minutes before the meeting:

Alderman #1: “so how can we kill off this stupid trailer park concept?”

Alderman #2: “I know, let’s say we think that the people will block the roads with their cars and the ambulance can’t get in”.

Alderman #3: “Yeah, I like that one, but let’s also throw in about how we don’t have enough water pressure”.

Alderman #4: “I don’t care what you guys tell them, just hurry up with the vote because I don’t want to miss Pizza Night at the Eagles Club.”

I know nothing about the details of this park or the allegations, but it sure looks suspicious that these bureaucrats won’t simply fix the water now, but will only invest the money if the owner sells to the residents. The optics to me makes me wonder if this is really just a case of trying to coerce this owner into this ridiculous resident-owned community dream. Wait until the residents see what the new lot rent will be once they pile debt on this property. Good luck.

$105,000 for a 10’ x 30’? Seriously? That’s $300 per square foot. Maybe somebody considering this should consult Realtor.com because you can get a real house – including the land underneath – in the nicest areas of the U.S. for an average of $250 per square foot. 

I have to admit that I find it ironic when cities shut down parks and think they can rationalize it with flowery prose:

McAllen City Manager Roy Rodriguez said the city bought the property three years ago for expansion purposes. “We are expanding the campus for the McAllen Convention Center and outside festivities like MXLAN, this weekend is a perfect example of how we are expanding the facility,” Rodriguez said. “We are ready to start attempting to develop it”

I guess all park owners can learn from this and use the old Teddy Roosevelt phrase when the media calls “we shall endeavor to persevere” with property redevelopment.

This article pretty much exemplifies that the worst thing you can probably hear is “I’m from the government and I’m here to help”.

The residents rarely have the ability to come up with the money on these ridiculous first-option rules. The odds are about as large as a meteorite hitting the title company. Just read the article itself. Here’s the proof:

“There are now 24 resident-owned communities in Washington and roughly 300 across the country, she said”

Here’s a reality check. There are around 44,000 mobile home parks in the U.S. There are around 300 resident-owned communities. That’s .0.0068% probability that they pull it off. Or conversely a 99.32% chance they can’t. Is that really worth the delay these first-option rules require? Clearly not. Then why pass such nonsense? Because it panders to the voting base and most voters are too stupid to know the actual math.

Here’s the key quote from this article:

“In the wake of Petaluma moving to tighten rent control and other protections in its mobile home parks, two park owners have now signalled they may shut down”.

The writer then goes on to point out how this will destroy hundreds of residents’ lives who can find no place even remotely as cheap to live.

OK, now who is then responsible for those folks being homeless? The group that passes the rent control. Their vote effectively signalled the death warrant for these properties. And they won’t be alone. I’m sure that other parks in Petaluma will follow their lead and redevelop into different uses.

I’ve written for nearly 20 years about the fact that rent control equals park redevelopment. It’s never going to change. Want to eliminate mobile home parks in your city/county/state? Simple solution: just pass rent control.

This quote reflects everything that’s wrong with the perception of mobile home park landlords:

[when a home burns down] residents are still required to pay rent for their mobile home spot, regardless if their house is still standing….But that’s not all.“They’re now telling us that we’re responsible for cleanup,” Castillo continued. “These families, many of whom didn’t have insurance, are now left to scramble and find apartments, find other places where they already don’t meet the income requirements. Aside from doing that, they also have to now find a way to save money, to pay the over $5,000 in cleanup fees plus the monthly rent until they are able to put in their 30 day notice to vacate.” Leaving many not knowing what’s next.“I feel like they’re just seeing us as dollar signs,” Perez said.

According to this rationale, mobile home park owners are not landlords, they are apparently government agencies – non-profits – that are responsible for much more than just providing parking spaces for mobile homes. Can you imagine applying this same logic to a parking lot at the airport in which your car burned down while you were on your trip. Do you think that would make you not responsible for your parking fee? For removal of your car? To any damage to the parking lot that the fire caused?

This is just plain stupid.

This is an issue for each resident to decide. If you live in a flood zone, you get flooding. It’s called accountability. How can people suddenly wake up and say “oh my gosh, I didn’t know I could be flooded?” when they’ve known that from the onset. If the State of Vermont now steps in and says “you can’t live in flood zones” then many people who have planned for periodic flooding will lose the use of their property. Is that fair?

Here’s one of the classic quotes of all time regarding this city-owned park:

“We’re making over $170,000 a year, so if any private developer would come in, I imagine they would maintain their asset the same way we would,” he said.

For those who have little math skills – which this bureaucrat hopes applies to residents of the park -- $170,000 per year in net income at a 6% cap rate works out to only $2,800,000. Do you think that a big piece of land near the waterfront in Ontario, Canada might be worth a little more than $2,800,000?

Here’s how this is really going to work out. The city is going to sell the property to a developer and they will swiftly tear it down to build apartments. The city removes all of the cost the park inflicts on the city (school tuition, uninsured hospital visits, etc.), improves the drive-up appeal of the neighborhood, and gets out from under the tough job of managing a mobile home park. And everyone knows it, regardless of what they may say at city council meetings.

Am I the only one or doesn’t this program sound like the old “company store” from the 19th century where miners and manufacturing workers were not paid in U.S. currency but in credits they could only use at the “company store” and had no actual monetary value? In this case, you buy a stick-built home with real cash and yet all you get is a 99-year land lease under which you can only sell your home back to this “land trust” and after 99-years – if you don’t sell – they can just take it back for free. Since the whole point of home ownership is to gain equity as home prices increase, they are effectively neutering the ability to profit from home ownership. Bad deal for the buyers, in my opinion.

Great letter to the media from this owner when they were accused of raising rent and ruining the park:
When contacted, Brett Garner, the park manager until recently, responded in writing, citing some of the options.

“1. We can leave the community as it is, not pursue improvements, and leave lots rents close to where they were.”  “2. Increase the quality of the community by adding the lots on the east end, connect the existing community to the newly installed water and sewer pipe (planned for next summer), repave the roads (planned for July 2023), add a recreation area on the north side of the park, and clean up the look of the community so that it’s more desirable for you and all residents to live in. We chose to go with option two because, in our eyes, it’s what’s best for our immediate community (Estates at The Bluff) and the community at large (Kremmling).“

There’s no question that in any 100-space park there are probably 2 people who can’t afford to pay more rent and want to live in squalor if that’s the cheapest option. But the majority don’t agree and the key to running a business is to please the majority of your customers, not some tiny fringe faction.

This is getting absolutely ridiculous. The power in a mobile home park was cut-off for a brief while for necessary repairs to a transformer and the residents are going beserk because they didn’t get enough notice. I have lost my power for days at a time in a stick-built house in the middle of the summer – due to a major storm – and the entire town survived just fine. Here’s what both sides say:

“{the manager] said the power outages were a result of a private electric company hired by the management to work on a transformer within the park. She said paper notices were distributed to residents' mailboxes, but the warning given was far from sufficient. "We're supposed to have 72 hours notice, they didn't even come close to doing that," she said. One of the notices had the wrong date listed on it, leading to additional confusion”.

Not that many decades ago there was no air-conditioning. And 100 years before that, there was no electricity. And people survived just fine. Is America so pathetic now that it can’t get along even for a couple hours without power? 

The buyer is spending $16,250,000 for 87 mobile home lots. That’s around $200,000 per lot. Look at the photos of the property. Look at the location. Who in the world would not realize this is going to be torn down and redeveloped in the extremely near future?

The moral to this story is simple: stay far, far away from California if you want to be a landlord. Who in the world wants to mess with nonsense like this?

Same recurring theme:

Soon, the mobile home park located on Forrest Avenue in McKenzie could cease to exist. During the monthly meeting of the McKenzie City Council, the board approved (on the first reading) Ordinance 554 to amend the mobile home park property from R-4 (residential mobile home) to R-3 (high-density residential). This allows the owners to develop the property for the construction of “townhouses.”

Redevelopment of mobile home parks is accelerating for more profitable housing options. Residents and bureaucrats better take note because they will soon find out that the only way to stem this tide is to drop the strategy of public shaming park owners who engage in reasonable rent increases and instead say to owners “how much would the rent have to be to keep this park in operation and away from the wrecking ball?” and then happily pay it.

I have no problem with the concept of residents buying parks – we’ve sold several to the residents – but let’s all agree that 32 lots is not exactly changing the direction of the earth as many of these “resident-owned” articles like to suggest.

It’s not hard to find an attorney to file almost anything if you’ll pay their hourly rate, but I sense the residents will have some challenges with their class-action dream namely because 1) Ohio has no rent control 2) Ohio has no rent control and 3) did I mention that Ohio has no rent control? Kind of hard to overcome that one issue when your lawsuit is about the owner raising rent.

But I can bet you that the owners of this park are probably meeting this weekend with some land developers to get the current value per square foot – wouldn’t you? If the residents are the catalyst for that redevelopment then they have nobody to blame but themselves.

This time it’s a city itself that is tearing down the mobile home park to make way for a better use of the land. And the residents are mad because the city is going to displace 30 tenants to make way for 300 more housing units.

"Residents of the park have described the morale as “depressing” since the approval.“There is a community based here. They showed that they are going to make places so that people can have more places to live, but what about here? There are over 70 residents here. We are all getting kicked out on the street and that is not right,” said Amanda Mitchell, a resident who has lived at the park for 20 years."

It looks like the 800-pound gorilla in the room nationwide is that park owners simply tear down and redevelop when the mobile home park is no longer the highest and best use of the land. That means residents need to embrace rent increases and follow the rules because the alternative is homelessness. It’s that simple. Even cities – in this case -- are following this mantra.

Let’s see … $750,000 for a 1,700 doublewide works out to $441 per square foot. For a mobile home. In a world in which you can buy a really nice stick-built in many markets for half that amount. The only thing that knocks my socks off in this article is how stupid anyone would be to pay that much for an old doublewide. Come out to Missouri and we can get you an identical dwelling for about $50,000 on a lakeside lot, and you can put the rest in the bank at 5% and live off the interest.

Same old story. Residents won’t behave and pay rent and the end result is redevelopment.

“Sarbaum Mobile Home Park owner Mike Baker notified residents in April of an Aug. 10 closure. Baker wrote to residents that he was "no longer able to meet the park's operating expenses" due to late payments and expensive repairs to its 60-plus-year-old sewer system.”

Some mobile home park residents take for granted that they are guaranteed an on-going place to live no matter what they do. This should serve as a lesson to these folks that they are fully accountable for their actions and you can’t push park owners around and not expect to get a park closure notice. Land is too valuable and park owners all have limits to their patience.

We all know that mobile home park residents are all angels and can do no wrong. Certainly, they would never lie to the media, right? Well, I’ve not been to this property, but I know Acentia and they are one of the best operators in the U.S. with exemplary property condition and professional management. I’m pretty sure that the owners are correct when they say:

"Much of the information shared in your story is inaccurate and untrue," wrote Marko Vukovich, Vice President of Operations for Acentia, in an email to CBS News Colorado. "We have owned and operated Foxridge Farm for over 43 years and take great pride in serving our residents and fulfilling our mission, vision, and values. We aim to offer a clean, safe, healthy community for many years. We are not in business for the quick profit and resent any such accusation."

So why would the residents lie to the press? Well, let me think what their motive might be? Maybe they think that they can press the bureaucrats into freezing their rent or getting them some free stuff. I’m willing to bet $100 that if we all went out to Foxridge Farms right now we’d look at each other with a puzzled look and say “what are these tenants talking about?”

Here’s a great quote from the property owner:

“There often comes a time in the life of a park that a decision must be made as to whether it is feasible to continue operating a park when the physical improvements and infrastructure become older and costly to repair and replace, and/or the park owners conclude they can no longer economically operate the park based on measures taken by state and local government,” read a July 6 letter from Little Woods Mobile Villa managers to residents. Due to such factors, the letter stated, the owners were “considering whether it is viable to continue operating the park as a mobile home park, and are exploring the option of converting the park.”

Rent control equals redevelopment – it’s just that simple. It’s unbelievable that these bureaucrats can’t see that they have absolutely no power over the property owner’s right to simply tear the park down and build something else on the property that is not subject to rent control. Total idiots. They are personally responsible for hundreds of households being homeless as a part of their actions in this case.

Yet again the residents think they have won by harassing the owner into selling the land to a developer – then shocked and agitated when they can’t find anywhere even remotely as inexpensive to live:

“The Jimenez family is supposed to pay $440 in lot fees each month. Like the other tenants, they’ve stopped those payments. However, they can’t afford to move anywhere else. The day they have to pack up is fast approaching. County records show the residents were supposed to vacate the premises by the end of June as the property owner prepared to sell the park to a developer.”

I don’t know anything about this property or any of its troubles, but it seems to me that the residents massively overplayed their hand and now they’re homeless as a result. You are going to see much more of this until America stops being a nation of litigation and instead strives to focus on win/win strategies.