Why Mobile Home Owners Face Eviction: Understanding Land Lease Vulnerabilities

For residents of mobile home parks, owning the structure does not guarantee housing security. The core vulnerability lies in the legal distinction between owning the mobile home itself and leasing the land it sits on. When a park is sold or lot rents increase significantly, residents can face eviction despite being homeowners, a situation where foreclosure rates are significantly lower than eviction rates for this group, according to recent data.

This article explains the legal framework that creates this risk, the market forces driving increased evictions, and practical steps mobile homeowners can take to protect their investment.

What is the Legal Difference Between Owning a Mobile Home and the Land?

The fundamental issue is that most mobile home park residents are owners of chattel, which is personal property like a car or boat, but not of the real property (land) beneath it. This means you own the physical structure, but you rent the lot in a mobile home park through a land lease agreement.

This division creates a unique set of challenges. As chattel owners, residents are responsible for maintenance, taxes, and insurance on their home. However, as tenants on the land, they are subject to the rules and financial demands of the park owner. This arrangement is often the most affordable path to homeownership, but it leaves residents exposed to the decisions of a third party who controls the land.

Why Are Evictions in Mobile Home Parks Increasing?

A primary driver of rising evictions is a shift in ownership. Traditionally, many parks were owned by individuals or families. Today, institutional investors are increasingly purchasing these properties, often with a focus on maximizing returns.

• Rent Hikes: New owners may significantly increase lot rents, which can be unaffordable for residents on fixed incomes.
• Park Closures or Redevelopment: An investor may decide to close the park to redevelop the land for more profitable uses, such as apartment complexes or commercial retail spaces.
• Strict Rule Enforcement: New management may enforce previously overlooked park rules, leading to evictions for minor violations.

When a resident cannot pay a new lot rent or the park is scheduled for closure, the eviction process begins. Because the resident does not own the land, they have fewer protections than a traditional homeowner facing foreclosure.

Table: Sample state data illustrating factors influencing mobile home park eviction rates. Rates are based on analysis of public eviction filing data over the past two years.

How Can Mobile Home Owners Mitigate the Risk of Eviction?

While the system presents challenges, proactive steps can help safeguard your home.

1. Understand Your Lease Agreement: Before purchasing a mobile home in a park, thoroughly review the land lease. Pay close attention to terms regarding rent increases, park rules, and the conditions under which the lease can be terminated.
2. Explore Resident-Owned Communities (ROCs): A growing movement involves residents collectively buying the mobile home park. In a Resident-Owned Community (ROC), residents form a cooperative that owns the land, converting lot rent into a share of ownership and providing long-term stability.
3. Investigate State and Local Laws: Some states and municipalities have enacted rent stabilization ordinances or require park owners to provide significant notice and relocation assistance in the event of a closure. Research the specific protections available in your area.
4. Seek Professional Advice: Before signing any documents, consider having the lease agreement reviewed by a HUD-approved housing counselor or an attorney familiar with mobile home law.

The key to protecting your investment is understanding that your security depends as much on the terms of your land lease as it does on owning your home. Proactive research and exploring collective ownership models are the most effective strategies for achieving lasting housing stability in a mobile home park.