The Impact of Pro-tenant Policies on Land Rents of Mobile Home Parks

Abstract

In the United States, several states have implemented pro-tenant policies with the aim of reducing the likelihood of unjustified evictions by mobile home park owners. This study specifically examines the effect of the resident ownership (RO) policy, which enables park residents to collectively purchase their community as a cooperative. The RO policy offers potential benefits to tenants by safeguarding against redevelopment or unauthorized sales of the mobile home park without their consent. However, there is a concern that the policy may lead to higher land rents if landlords incorporate this factor into rent prices before the conversion to a resident-owned community takes place. This paper analyzes the effects of the RO policy on land rent and finds that it has a small positive effect.