Tuesday, May 19, 2009

Terminology Tuesday - Lot Rent

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a day to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

Lot rent is a form of rent paid to the owner of the land where a mobile home sits on. This can be in a mobile home park. Or, on a lot or bigger piece of land. Paying lot rent to the land owner gives the owner of the mobile home the ability to keep the home on the lot.

There are 2 parts - the mobile home and the lot (aka the land). Each can be owned by different owners or can have the same owner. In cases where the mobile home is owned by a different party than the owner of the lot, the mobile home is considered personal property.

If you are purchasing a mobile home and you want to keep it on the lot, it's best to talk to the landowner first to see if it can stay there.

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