25 Mar Advantages vs Disadvantages of a Long Term Lease
Rental agreements and leases can be complex, confusing, often frustrating, and rather difficult to understand. California state law requires that each tenant have signed a written rental agreement. It is important to keep in mind a few basic principles when determining if you are going to offer rental agreements or long term leases to your mobile home park tenants.
A long-term lease is any lease which has a term in excess of 12 months. A long term lease offers many advantages to a mobile home park owner such as :
* Local rent control ordinance relief
* No need for annual rental adjustment process
* Insulates against possible political action regarding rent control
Another thing to consider in the use of a long term lease is how to adjust the base rent. Many owners then apply both a maximum and minimum percentage that can be applied to that increase.
Long term leases also deal with pass-through rent provisions, for things such as increases in insurance costs, or capital improvements. A simple formula applies as to the costs incurred, divided by the number of units in the park to reach the pass through amount. Many times a long term lease feature is the assumability of the lease upon the sale of the mobile home unit. This can be very attractive for the tenant.
Leases and rental agreements can be quite complex and should not be handled by yourself, but by a competent attorney who has experience in mobile home renter law California. Your attorney will review your documents, and make the proper corrections to ensure that you are in compliance with the mobile home park rental law CA. Spend a few dollars up front to ensure that is there is no wiggle room in the case of a dissatisfied renter.