When considering a home in a land-lease community, you may come across different terms and phrases like “land-lease fee,” “lot rent,” and “pad rent,” which can be confusing. With that said, it’s important for potential buyers to understand what it means to live in a land-lease community so they can know what to expect.
Definition of a Land-Lease Community
In a land-lease community, the owner of a home leases the land under which the home sits from a third party.
Mobile home and manufactured home communities are the most common land-lease communities, and in this case, the third party is generally a private individual, group, or company which owns the park and the accompanying land area.
Should I Buy a Manufactured Home in a Land-Lease Community?
There is no one right or wrong answer, but it’s important to understand the facts.
Because manufactured homes are the most affordable home ownership option available, the money saved in paying land costs can be applied to interior and exterior upgrades, such as interior finishes and amenities like walk-in closets or installing a more efficient heating and cooling systems.
Purchasing a home in the land-lease community typically includes access to unique community facilities and amenities. Some communities offer a wide variety of first-rate amenities such as swimming pools, fitness and recreation centers, laundry and cooking facilities, family and pet areas and more. Many of these communities also provide their own yard maintenance and refuse services as well.
At a glance, the national average cost to rent a manufactured home within a land-lease community averages between $844 and $935 per month. With that said, there are thousands of communities nationwide with monthly fees under $500 per month.
Consideration
When considering a home in a land-lease community, it’s essential to get a clear understanding of your lease agreement so that you can know what you can expect. Lease agreements are generally renewed on either a yearly or monthly basis. Read the terms and conditions. Pay attention to the surrender clause to avoid unpleasant surprises.
One potential drawback of land-lease communities is the limited appreciation potential of the home. Though land-lease home appreciation can occur, it depends heavily on the precise location and contingent local market conditions.
Land-lease communities are often run by a professional management company instead of a Homeowners’ Association (HOA). Both have their advantages and disadvantages. Whereas HOA boards are typically comprised of elected residents, professional management companies operations usually reduce the likelihood of impasses due to disagreement among residents.
In conclusion, when considering the purchase of a manufactured home in a land-lease community, having a clear understanding of all the options will help you make the most informed choice. Visit our indexed map-based search tool to explore thousands of land-lease communities across the United States and Canada.
If I buy amanurfactured home and purchase share will I own the property yhe home sits on ?
If I’m not mistaken, it sounds like you are considering buying a home in a resident-owned community. Generally speaking, you will own a share (not unlike a share in a publicly listed company, e.g Ford) of the total value acreage of the community. And you also own the home itself. To be clear, how this is set up can vary by community. The details are very site-specific. Always perfrom careful due diligence before signing any contracts. Hope that helps.
*Not intended as legal or financial advice.
I’ve called the manager of Surbana Estates. Both on 02/27/2025 & 02/28/2025. I have left.4 messages asking for a return call regarding my current rent payment.
NO BODY HAS EVER CONTACTED ME!! Please call me at (217) 600-9270
Thank you
Timothy J. Brown
205 Dewey St. Urbana. Illinois 61902
I’ve called the manager of Surbana Estates. Both on 02/27/2025 & 02/28/2025. I have left.4 messages asking for a return call regarding my current rent payment.
NO BODY HAS EVER CONTACTED ME!! Please call me at (217) 600-9270
Thank you
Timothy J. Brown
205 Dewey St. Urbana. Illinois 61902
I’m not entirely sure, but unless that share that you purchased includes some type of land owner agreement, which I think usually the language is usually different between owning a home and owning the land or lot that it sits on. You would normally need to own the deed to the property that the house sits on…and to do that, you would basically need to work out an agreement with the land owner.
where can I fill out a residency application
Debra,
You would first need to identify a community you want to live in. Then you make contact directly with the community manager to get a residency application. To get started, go to mhbo.com and search for your location by entering you city & state or zip code.
Hope that helps!
What does mhbo stand for and what does it mean
MHBO was founded in 2012 and it originally meant “mobile home best offer” but you can think of us as a mobile home marketplace.
Thank you for sharing this information.
Does this community accept double-wides? If so, are there any lots available at the moment?
If I own a mobile home in a specific mobile home park, but don’t live there yet, can I be denied a lot residency, and what are the reasons a person could be denied?
The Fair Housing Act prohibits discrimination because of race, color, national origin, religion, sex, familial status, and disability. If you feel you have been denied lot residency for reasons related to discrimination then you would likely have a legal case to bring.
That said, without knowing your specific situation, if you violated a park rule of some kind, for example, have a felony record and didn’t disclose it to the park and they have a rule prohibiting felons from owning a home in their park, then that would be a reason a person might be denied. We are not attorneys so this should not be taken as legal advice. The bottom line is know your rights.
I live in Exeter ca ins mobel home park I’ve had a space rent of 320 per month and a few months ago they gave notice that are June first rent will increase to 500 a month also everyone else in the park went to 400 but mine I feel I’m being singled out because the management company has charged me late fees of 35 dollars for many months before and I’ve took my proof showing they were paid on time but they never will take them off so when I took to the owner of the park they said they’d take them off then the management left message on my answering machine telling me she runs this park and pretty much threatened me to never go to the owners place ever again or there will be severe consequences so I feel this lady is single me out because I question her and authority cann she do yhis
Hi Vernon,
We are very sorry to hear that you’re going through this. No one should feel intimidated for asking reasonable questions about their rent or park policies.
For context, rent increases are legal in the state of California, unless your city or county has rent ordinances in place. However, if everyone else’s rent went up to $400 but yours was raised to $500, you may have grounds to challenge that as discriminatory or retaliatory, especially if it has to due with previous disputes. This is especially so if your park manager left harassing or threatening messages about “severe consequences,” for talking to the park owner. Under California Mobile Home Residency Law (MRL), you have the right to communicate with the park owners and dispute unfair fees without fear of punishment.
Here’s what you should do. First, document everything. Keep voicemails, print payment records, and write down the dates and times of every interaction. Then, contact California’s Mobilehome Assistance Center (MAC): by phone at (800) 952-8356, or by visiting their website: . They can explain your rights and help guide next steps.
You may also contact legal aid in your area if this continues. They can help protect your rights if you’re being treated unfairly.
You’re absolutely not alone, and you have the right to stand up for yourself without being bullied. Please let us know if you’d like help finding more resources in your area.
I live in Riverdale of Riverdale MHP located at
8000 Highway 85, Riverdale,GA 30296
We own our home and have lived here for 5 years. We have tried repeatedly in everyway we can imagine to aquire the corporate number
(Which the office refuses to give us) and to find out who owns the park with no luck.
Can you point me in the right direction to acquiring this information?
Thank You In Advance,
Deborah Stephens
⁴The corporation will be registered with the state.Usually this info is maintained by the Secretary of State. It is a public record. You can obtain the agent for service of process (the person yjou need to serve if you sue) through a public records request, or it may simply be available online.Easy. Good luck k.
Good afternoon, All. Please acquire any contracts, agreements, or applications prior to consideration of purchasing a mobile home and/or deciding to reside either in a resident-owned or mobile home park environment. This way, you can take your time and read the literature and ascertain if you need to run it by a caring and understanding attorney who has or will make the time for you (sometimes the verbiage needs a translator) prior to making a huge mistake that will take major time and money (that you may not have or may have to acquire) to fix. Let me respond to Lisa: You can be denied. There are several reasons a “supposed” denial can occur. You can be denied if you don’t make enough money to pay the steadily increasing mobile home lot rent (upwards of $500.00 per month in many venues). You can be denied if your mobile home is not in agreement with the septic system (bedroom and bathroom ratios to septic gallons), size – verify single, doublewide, etc., and measurements before purchase and consider the measurements should you have to move it). Attempt to be ever cognizant of mobile home movement and set up costs. All of the other things that you are not supposed to be denied for (e.g., race, color, creed, religion, sexual orientation, marital status, number of people in your family, disability, etc.) will not keep you from experiencing trouble once you move there…Let me respond to Peter H. The Fair Housing Act isn’t worth the paper it’s printed on! They or any other organization are not going to intercede on your behalf no matter what the mobile home lot owner is doing! You are on their land and you don’t own anything! Therefore, you will find out very quickly that you have no rights!! The mobile home lot owner is not governed by the Realtor’s Association (they can and will do absolutely nothing except recommend an attorney) or anyone else for that matter, for they don’t need to have a license to run a mobile home park! The mobile home lot owner does not have to afford you any reason to evict you! If they (not really the “true” reason of course – usual reasons are the “supposed” protected classes that will not be enforced) don’t like your hair color – you’re gone! There is absolutely nothing you can do about it – especially if you are on a month-to-month tenancy because your stipulated 12-month lease is up (not to say you cannot be evicted if they said you did something to warrant it – they will have a case)! You will then waste more of your time calling Fair Housing, Realtor’s Association, attorneys, etc. You will get excuses like, “We are swamped,” or “We don’t have any attorneys who practice in that field and/or are available to assist you.” If you have a dispute with the mobile home lot owner, the court will speedily relegate it to tenant-landlord dispute (so they don’t have to hear your case or deal with it greater than a few minutes). Then very quickly, the court will make a judgment in favor of the mobile home lot owner. You – as the mobile home owner will then have 10 [calendar} days to remove and relocate your MOBILE HOME; not household goods – ENTIRE MOBILE HOME! You’d better know to ask the magistrate for an APPEAL!!!! You’re going to need the extra time to find a lot (you need land that is plumbed for septic, electric, and water – a driveway is also good to have in place), mobile home mover (tear down, set up, and trim), file for permits (tax, housing, etc.), septic upgrades, and entities to connect the utilities (electric, water, and septic).
My best advice is: IF YOU’RE GOING TO GET A MOBILE HOME, RESEARCH, RESEARCH, RESEARCH!! GET YOUR OWN LAND FROM THE START – RIGHT OUT OF THE GATE!! STAY AWAY FROM ANY ARRANGEMENT WHERE YOU DON’T OWN YOUR OWN LAND AND HAVE OR RECEIVE NO BENEFIT FROM LIVING THERE! BEST OF LUCK TO YOU!!
* NOTE: I am not an attorney or attorney spokesperson. This commentary from my personal experience is not intended to cure, diagnose, or treat wrongful law or court handling of judicial complaints, conditions, diagnoses, diseases, or violations. Any similarities to persons living or deceased is a complete and utter shameful and unlawful coincidence. Thank you for your time and attention to my commentary.
Hi Daniene,
I like your commentary which is totally in accordance with my thoughts, I have a question for which I can’t find any reliable answer:
What are the laws or rules to terminate a lot lease agreement in a community and to move my mobile home to a land I own ? can a community land owner prevent me to leave with my mobile home.
…… I own a land , zoned for M.H. I plan to install a Mobile Home on it for my retirement….. cost of a M.H in a community are much lower priced compared to a new one and and even compared to an used on a private land, not to mention that M.H in 55+ community are usually clean and well maintained……… so my idea is to buy one in a community, to pay for the lot rent until end of the lease term, to hire a M.H. moving company and to say goodby……can this be an option…… If I pay all the lease term remaining rents in advance, can I leave with my M.H the next day?
In advance thanks for your advice
Hi Michel,
The ability to terminate a lot lease agreement in a mobile home community and move your mobile home to your own land will ultimately depend on the specific terms outlined in each individual lease agreement. Some mobile home communities may have different rules and regulations regarding the right to purchase and vacate homes from the community. Your lease agreement should outline the terms and conditions regarding termination of the lease, including any notice requirements and penalties for early termination.
In short, there is no unanimous rule on this subject to which all mobile home communities adhere. Rather, you will have to assess the terms of each lease agreement on a case-by-case basis.
exactly. STAY AWAY FROM RAPLH SIDES AND ALL HIS PARKS TOO. They look great on the outside but his racist discriminitory self and famkily and boomer neighbors will screw you!!
they’ve now changed their ,aim park tp runaway….it’s ironic…bc that’s wxactly what you should do, runaway!!
Are there Any Open Lots for a Brand New Home?
Hello Ro,
You can use our map-based search tool to look for communities in your area, and from there you can contact the communities to see if there are open lots available for your new home.
Hi Shannon, here’s the link to our map-based search tool: https://www.mhbo.com/mobile_listings/maps#buy_get_started
All in all would I be better off just renting in a park then land leasing? Or is it the same thing?
Hi Donna,
Most mobile home parks operate as land-lease communities, meaning that when you rent the mobile home, you are also renting/leasing the land as well. In this sense, renting and land-leasing are the same thing, as your lot rent (a.k.a. the money you pay to rent the land) is already part of the rent you pay for living in the park altogether.
I am looking for to park my rv in la follette tenesse are there any spots open any where in or near there
Hi Barbara,
You can visit our home page at MHBO.com, and use our Map-Based Search Tool to see communities in the LaFollette area. All you need to do is type the area in the search (ex. “LaFollette, TN”). Our map will give you multiple results for you to compare using our community type and price filters.
If I am purchasing a home from a dealer can I rent a lot from ypu? How do I go about doing this if this is possible?
Hi Kristen.
We don’t lease homes ourselves, but we do have tools to help you find homes and dealers in your area. Try using our map-based search tool to see mobile homes and communities near you and get in touch with dealers. Just go to MHBO.com and enter your city, state, zipcode or community to get started!
WARNING – to all new potential buyers/ Do your homework FIRST – WAY BEFORE THINKING OF PURCHASING A LAND-LEASE PURCHASE/RENT SCENERO.
WHAT THEY DON’T TELL YOU IS; THE THIRD-PARTY OWNERS/MANAGMENT CAN UP YOUR LOT RENT TO ANY AMOUNT THEY PLEASE….THERE ARE NO STATE OR FEDERAL MANDATES FOR THESE OWNERS. ALSO, YOU ARE CHARGED A MONTHLY FEE FOR EACH PET YOU OWN, THAT NEVER STOPS — EVEN IF YOU THINK YOU OWN THE HOUSE – YOU DON’T! BECAUSE YOU PAY THEIR PORPERTY TAXES FOR THE OWNERS OF THE LAND, AND PPT SEEM TO GO UP EVERY YEAR. DON’T FORGET YOU WILL NEED HOMEHOWNER HOME INSURANCE ALSO.
THEY DO UNANNOUNCED OUTSIDE INSPECTIONS SEVERAL TIMES A YEAR, AND YOU ARE REQUIRED TO FIX ANY THING THEY DEEM FIT TO IMPROVE WITHIN A SHORT PERIOD OF TIME.
THIS MAY SOUND AFFORDABLE, BUT ONCE YOU PURCHASE THIS HOUSE IS YOURS UNTIL YOU DIE. WIDOWERS STRUGGLE TO MAKE ENDS MEET. TO HAVE THE MOBILEHOMES SERVICE IS A CHALLENGE, NOT MUCH EXPERIENCED SERVICE VENDORS – DUE TO THE MANY KINDS OF MODELS AND ORIGINAL BUILDERS. MOST OF THESE HOME HAVE BEEN PUT TOGETHER POOLY – MASS PRODUCTION HOMES – NOT QUALITY. Places like this are not meant to be permanent homes. This place works best with TWO INCOMES – WITH ONLY ONE, YOUR FUTURE IS RISKY BECAUSE OF LOT RENT HIKES – PET CHARGES, PPT INCREASES AND HOMEOWNER INSURANCE THAT GOES UP AS WELL. BE A GREAT FINANCIAL ADVISOR BEFORE CONSIDERING THIS TYPE OF HOME PURCHASE.
Hi Scott. Thank you so much for sharing your experience and concerns. You’re absolutely right that doing your homework before entering into a land-lease agreement is crucial. Unlike traditional homeownership, where you own both the structure and the land, land-lease communities come with unique financial and lifestyle considerations.
We always recommend that anyone considering a manufactured home in a land-lease community:
1.) Read the lease carefully, including policies on rent increases, pet fees, and community rules. Talk to current residents to get an honest perspective.
2.) Consider long-term affordability — especially for those who are retired, widowed, or on a fixed income.
3.) Explore state-specific protections, as some states do offer limited rent control, sale protections, or relocation assistance.
Thanks for voicing your concerns. These are the kinds of real-life experiences that help others make informed decisions.
The land lease amount shown here is WRONG. It has not been $725 for some time. It is currently $1055. for most of the homes that are available to purchase. Some closer to the lake may be more.
Hi Sandra. Thanks for pointing that out.
The estimates provided in this article are based on industry-wide averages across the country at the time of publication.
Actual monthly rent can vary a lot depending on the specific community, location, and amenities. As you noted, some parks, especially those near popular areas like lakes, may have rents over $1,000.
Thank you for sharing your experience, as it helps highlight how costs can differ. It’s always best to check directly with the park for most up-to-date lease rates.