Definition
A land lease community is a housing development where homeowners do not own the land on which their homes are placed. Instead, they lease the land from a landowner or management company that maintains ownership of the property. The landowner often provides infrastructure such as roads, utilities, and community amenities like clubhouses, swimming pools, and maintenance services. This type of community is prevalent among owners of manufactured or mobile homes.
Examples
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Mobile Home Parks: These are perhaps the most well-known type of land lease communities. Families own their mobile homes but lease the lot from the park owner. Modern mobile home parks sometimes boast amenities like swimming pools, community centers, and organized activities.
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Manufactured Home Communities: Similar to mobile home parks, these communities specifically cater to manufactured homes. The land lease arrangement allows these homeowners to benefit from community features and maintained common areas.
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Recreational Vehicle (RV) Parks: These are temporary land lease communities designed for RV owners who rent a space for their vehicles along with access to shared amenities like bathrooms, laundry facilities, and recreational areas.
Frequently Asked Questions (FAQs)
Q1: What are the advantages of living in a land lease community? A1: Advantages include lower initial costs (since you’re only buying the home and not the land), access to community amenities, and property management services that maintain common areas and infrastructure.
Q2: What are the disadvantages of a land lease community? A2: Disadvantages might include paying monthly or yearly lease fees, potential restrictions from community rules, and the possibility of lease rates increasing over time.
Q3: Can I sell my home if I live in a land lease community? A3: Yes, homeowners can sell their homes, but they need to ensure that the new owner agrees to the terms of the land lease with the community management.
Q4: Are land lease communities governed by specific regulations? A4: Yes, regulations can vary by state and locality, but they often include rules regarding leasing terms, community maintenance standards, and tenant rights.
Q5: Do residents in a land lease community pay property taxes? A5: Generally, the land lease agreement includes the cost of taxes on the land paid by the landowner. However, homeowners may still be responsible for taxes on their home structures.
Related Terms
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Manufactured Home: A prefabricated house that is assembled in factories and then transported to the site where it will be used.
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Mobile Home: A form of manufactured home that is designed to be transportable. Unlike traditional homes, mobile homes can be relocated even after installation.
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Leasehold Estate: A property interest where a lessee has the rights to use and occupy land or buildings for a stated term, in return for periodic payments (rent).
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Community Amenities: Features and services offered within a housing community that enhance the living experience of its residents, including facilities like swimming pools, clubhouses, parks, and security services.
Online Resources
- Manufactured Housing Institute: Provides resources and advocacy for the manufactured housing industry.
- Mobile Home Living: Offers resources, tips, and real-life stories about mobile home living.
- National Association of Manufactured Housing Community Owners (NAMHCO): Offers information and advocacy for land lease communities and their owners.
References
- National Housing Institute. “Manufactured Housing: Facts and Figures,” NHI.
- U.S. Department of Housing and Urban Development, “Manufactured Homes,” HUD.
Suggested Books for Further Studies
- “Manufactured and Mobile Homes: An International Perspective” by Paul Bradley, William Apgar.
- “The Complete Guide to Buying and Selling a Mobile Home” by J. K. Lassiter.
- “The Affordable Housing Solution: Cruise Ships, Mobile Homes and Other Nontraditional Homes” by Marie Ferguson.
