What does ground rent pay for? (What is included?)
It depends on each individual community BUT the following are included in some communities we frequently sell in: trash removal, water, pool use, grass mowing, common area maintenance, pool maintenance, snow removal from streets.
Can I have pets in a leased land community?
Yes. There are a few communities that do have breed, size restrictions and number of pets allowed per home. As far as I am aware all communities do allow pets however.
Does the ground rent go up every year?
Not necessarily. It can go up every year but I have noticed the increases tend to be modest since the rent cap law was passed many years ago for the State of DE.
Can guests or family use my home?
Can I rent out my leased land home?
Some land lease communities allow long term renters to occupy your home. A six month or longer term is common and the community office usually reserves the right to ask for a community application from your potential renter before allowing them to move in. The park office will want to approve of and know who is living in your home over the age of 18.
Is the lease year-to-year?
Yes. Even longer term leases can reserve the right to increase your rent yearly. I never quite figured out the benefit of longer leases after 15 years of specializing in this niche of the market.
What if the land owner decides to sell the community to a developer?
Hypothetically this is possible but I have not seen an established residential mobile home land owner with hundreds of homesites ask all their residents to up and relocate their homes. The lost property value would be staggering and I would imagine it would be tied up in the court system for eternity. Legally if this was to happen, all residents would have to be given one year’s written notice. Most of these residential mobile home communities are such a cash cow for the land owners/ corporations they would be foolish to sell to a developer. I have seen one community change hands but only to another mobile home management company (Hudson family/Rehoboth Bay Community sold to Hometown America about a decade ago). Residents are still happily in place enjoying their homes.
Why do I pay any type of property taxes for a leased land home?
Good question. About 80% of the tax you’ll pay on your mobile home here goes to the school system in Sussex County. The taxes are LOW and range usually between $350 and $500 a year.
Can I move the house?
If you don’t have a mortgage on it, yes – you own the house and can move it wherever you like.
If I sell the home am I let out of the lease?
Yes. Everything gets prorated to the day of settlement (your ground rent, taxes, sewer, water and usually heating fuel).
Are these communities year round?
I only know of one small community (Daniels MHP) that is NOT year round so yes, they are nearly all year round.
How many of the homesites are lived in by full time, year round residents?
I’ve noticed that the ratio is about 50/50. Half are year round full time residents and half are weekend and summer people.