Will the RV Park get SOLD, and Fulltimers Evicted?

Hi, All!

I am a single guy with doggies....currently in the feasibility analysis stages of buying a Fifthwheel...then continue living and working in Dallas for another fifteen years or so.

My admittedly paranoid question deals with long-term stays at an RV park...

Is it common for an RV park to be sold to real estate developers (for construction of houses/ buildings/ whatever), and then all the full-time tenants get evicted?    ..or do they get rid of tenants it by "cleverly" raising the rent to an astronomical amount?


If this does happen, how much time do folks have to look for another location to live? 

Thank you in advance for your input,

Robt.

I have never heard of that happening and it is not something I am worried about. But if it happens I will just unplug and head on down the road to the next park.

Hi, Mr zzyx,

Actually, I have heard on the news of elderly folks in Arizona Mobile Home parks getting in major trouble because of this type of event. 

Basically, they have to move out...but don't have the money to do so.

As for movin' on down the road...you are absolutely right!  ...but will I then have to drive forty miles in traffic each way to get to work?



Robt.

A mobile home park is not the same thing as an RV park. Do you have a link to the story?

As far as driving 40 miles to work, are you saying there is only one RV park in your area? Most cities have a multitude of RV parks.

There are differences, I have heard of RV parks being sold,,Or foreclosed on (more common) or for some other reason the current managment, goes out of business.  LIke a hotel, or apartment complex, or any other rented domicile, if this happens you may (or may not) get tossed out.. You may get "re-negotatied" with the new management or you may get continued under current contract.  Generally it is up to the new owners of the land.

One membership park I belong to, the owner specialises in buying foreclosed upon parks, for a fraction of what the former "owners" owed the bank, and making them into nice places..  One of those parks was still occupied (Well part of it was) and let's just say a few lawyers have purchased new vacation homes as a result.

Another.. the tax man commeth, and tooketh away, and the park, (Last time I was there) was a government park.  Still an RV park however, Even had the same manager. (It was corporate who failed to pay the taxes after all).

Thanks, John,

Since I'm trying to do some long term planning, I want to weigh a variety of risk/ reward scenarios. 

As you describe, real estate is just another asset, so the outcomes will be different for property renters versus property buyers.

Robt.

They closed an RV park in Fort Myers, FL and chased away all the tenants three or four of years ago to build commercial buildings.  The economy went south and the commercial development never happened, but no more RV park.  So it does happen.

One of the rv parks near Davenport, Fl was sold a few years ago to a developer. Tenants were given 60 days to move. Many were long term residents living in units that could not be moved and went to the tv stations and newspapers with their sad tales. Long story short - tenants are gone. There is now a shopping center there. We own some private residences as rental properties. We sold one last year to a developer to build a convenience store. Tenants were given until there lease expired and then forced to move. It happens all the time. One big disadvantage of renting is you have no control of property disposition.

It was happening in Florida while the real estate market was booming, not much anymore. The hardship comes in for people owning mobile homes that are difficult and costly to move. The old ones are not worth the cost to move. For an rv you just find another spot you like and settle in.

Mr_Toad said:

Hi, Mr zzyx,

Actually, I have heard on the news of elderly folks in Arizona Mobile Home parks getting in major trouble because of this type of event. 

Basically, they have to move out...but don't have the money to do so.

As for movin' on down the road...you are absolutely right!  ...but will I then have to drive forty miles in traffic each way to get to work?



Robt.

Click to expand...

That happened in SoCal a few years ago.  But the story had a better outcome.  The mobile homeowners leased the individual properties which were in a park overlooking the Pacific.  When it was all said and done, the developers were able to build their project and each of the former owner became millionaires.  Remember, location, location and location. 

garyb1st said:

That happened in SoCal a few years ago.  But the story had a better outcome.  The mobile homeowners leased the individual properties which were in a park overlooking the Pacific.  When it was all said and done, the developers were able to build their project and each of the former owner became millionaires.  Remember, location, location and location.

Click to expand...

Would that be the Malibu RV Park?

Always have a "Plan B". RV parks can be sold for development. Apartment buildings can convert to condos. Residential properties can be taken by eminent domain. There are no long term guarantees. Having an RV in a park is likely one of the simplest things to manage when a change of that type occurs, since hooking up and moving down the road is relatively easy and low cost.

Mr_Toad said:

Is it common for an RV park to be sold to real estate developers (for construction of houses/ buildings/ whatever), and then all the full-time tenants get evicted?    ..or do they get rid of tenants it by "cleverly" raising the rent to an astronomical amount?

Click to expand...

It would be common if the real estate in the area of the RV park was rising in value - and the income from other than an RV park would make better financial use of the land. And if that happened, the current RVers would most likely be told to leave. Some investors might buy a park while waiting for the property values to rise - and keep the park as is until that happens. But their goal is to eventually make a lot more money off the park by converting it to other than an RV park or selling to another developer.

I saw that happen at a park a few years back. They began building new homes around the park that were selling for up to a million per unit. Renters in the RV park were only paying $400/month rent. A developer from LA bought the park with the idea of keeping it awhile then selling for development. Those homes now are selling for only around 2 to 400k and the investor has since defaulted on his loan for purchase of the park. All of the monthly park RVers are still there now paying $425.

If a park is just changing owners - and the new owner wants to keep it as an RV park - rarely would they evict anyone. When a bank loans money for purchase of an RV park, the first question they ask is, "How many monthly renters do you have". Banks loan money to parks based on that steady income vs. how many overnight or weekly customers frequent the park. The only RVers that would asked to leave would be those that have created an eye sore on their site -- or, are delinquent in their rent.

You do make a good point in that if you are still tied to a job and need to be in the location - having to move could cause a problem if there are no other parks in your rental price range. In all of Sacramento, for example, there are only about 2 parks I would stay on a continuing basis - that I could afford. The rest are in shady areas of town, or priced too high for me. So in your case, just moving on down the road might not be as easy as for a full time RVer not tied to a job - unless the job location was from the RV.

SeilerBird said:

Would that be the Malibu RV Park?

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As I recall, it was closer to the Laguna area.