If you sell the land and improvements separately, you have to accept that you’ll probably end up with different owners for the land and improvements. I believe mobile homes are usually sold with a similar system, as the land and the home are usually owned by different people. Might be interesting to study that. I don’t have any experience with that system, but the incentives seem pretty bad, e.g. if you have great improvements on the land, the land owner can increase your rent dramatically, knowing that you won’t abandon your improvements.
See my reply to JBlack’s comment for a clarification on what would happen after the land was sold and there are different owners for land an amendments. Usually, I would expect the land-owner to buy the home after the auction.
I believe mobile homes are usually sold with a similar system, as the land and the home are usually owned by different people
Oh interesting! I will look into that.
The strategy is interesting, one might imagine the landlord and the renter splitting the cost of some improvements, since the landlord gets higher land value and the renter gets to enjoy the improvements.
Typically (in California), there is one owner of the whole park, who charges rent based on location and amenities (eg a pool or dog walking trails) to individuals who own what me grandma calls “am immobile home”
If you sell the land and improvements separately, you have to accept that you’ll probably end up with different owners for the land and improvements. I believe mobile homes are usually sold with a similar system, as the land and the home are usually owned by different people. Might be interesting to study that. I don’t have any experience with that system, but the incentives seem pretty bad, e.g. if you have great improvements on the land, the land owner can increase your rent dramatically, knowing that you won’t abandon your improvements.
See my reply to JBlack’s comment for a clarification on what would happen after the land was sold and there are different owners for land an amendments. Usually, I would expect the land-owner to buy the home after the auction.
Oh interesting! I will look into that.
The strategy is interesting, one might imagine the landlord and the renter splitting the cost of some improvements, since the landlord gets higher land value and the renter gets to enjoy the improvements.
Typically (in California), there is one owner of the whole park, who charges rent based on location and amenities (eg a pool or dog walking trails) to individuals who own what me grandma calls “am immobile home”