CAN THE HOMEOWNERS CHALLENGE A RENTAL INCREASE, REDUCTION IN SERVICES, RULE CHANGES, AND/OR PASS THROUGH CHARGES?
Yes, but it takes preparation and organization in order to properly and effectively negotiate with the homeowners. The strongest challenges will typically come from well organized and funded HOAs which are represented by counsel. Before the first meeting, it would be helpful to have a market rental analysis that provides comparable rents from other parks (FMO has rent comparables available for purchase). From a business perspective it is important to have as much information as possible so that you can properly evaluate what an appropriate rental increase is for negotiation purposes. We recommend in contested cases that an appraisal be conducted by an MAI appraiser supporting any rental increase.
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