What is an in-place transfer?
An in-place transfer is when a new owner purchases a mobile home and assumes a new lease on the space where it stands.
Why do we need an In-Place Transfer Clause?
Space rent impacts mobile home equity. During a sale, the lease terms are rewritten and space rent is increased. Every $100 increase in space rent at time of transfer decreases equity by $10k.1
Why is this issue specific to mobile homes?
Mobile homes are the only housing type to both pay rent and have home equity.
Shouldn’t we allow rents to rise to “market rate”?
Mobile home owners are particularly vulnerable as they are a captive market. They own the mobile home but cannot feasibly move it if they don’t like the new lease terms. Unlike renters, they can’t just leave.
Aren’t mobile homes mobile? Why can’t you just move it?
Mobile homes are not mobile. For a standard double wide it can cost over $40k to move it, and empty spaces in the bay area are essentially non-existent.
Why is this a problem now?
Mobile home owners in several Mountain View parks have seen significantly increasing space rent at transfer, making it difficult to sell their homes. Park owners have been buying the devalued units themselves to rent out at higher values. Meanwhile, residents are not allowed to rent out their units.