Chapter 11 of 20
Evaluating lot rent and community rules
How to read a lease and a rule book before they become binding on you.
2 min read
Get the lease and the community rules in writing, and read them before you make an offer rather than at closing. These documents govern your daily life in ways that are not obvious from a viewing, and they are not negotiable once you have committed.
On rent, today's number is the least useful fact available. Ask for the history: what has lot rent been each year for the past five? Ask what governs increases, notice periods, caps, whether any state or local rules apply, and ask whether rent resets when a home changes hands, because some communities re-rate the lot for an incoming owner.
On the rules, look specifically for the ones that constrain your plans. Can you add a deck, a shed, a carport, a fence? Do exterior changes need approval, and from whom? What are the parking limits, including for guests and for a second vehicle? What is the pet policy, including size and breed limits? Can you rent the home out, or let a family member live in it?
Then look for the rules that affect your exit. Must the community approve your buyer? Is there an age restriction, which lawfully limits your buyer pool? Is there a fee when the home is sold? These determine how easily you can leave, and they are the clauses buyers most often discover too late.
Key points
- Read the lease and rules before making an offer, not at closing.
- Ask for five years of rent history and what governs increases.
- Check whether rent resets when the home is sold.
- Find the rules that constrain your exit, not just your daily life.
Watch out
Verbal assurances about rent or rules from anyone, including a seller or an on-site manager, are worth nothing at all. If it matters, it must be in the written documents.
Questions to ask
- May I see the lease and the full community rules today?
- What has lot rent been each year for the last five years?
- Does rent change when a home is resold?
- What improvements require approval, and who decides?
- Must the community approve my buyer when I sell?