Regulators have been cracking down on abusive rent-to-own deals in which people shell out thousands of dollars for run-down homes that they never actually get to buy.
Now authorities are homing in on similar deals offered by operators of manufactured home communities, otherwise known as trailer parks. Private equity firms and large real estate investors have been looking to buy Cheap trailer for rent parks and combine them into larger companies. They are attractive investments because prefabricated Chexp are relatively cheap to produce and maintain.
Sun operates more than parks for manufactured homes and recreational vehicles. Kathy Bonamo was one of the people who complained to the state.
Lakewood Park, where Ms. Bonamo and her boyfriend were living, is owned by Kingsley Management of Provo, Utah, which operates in a dozen states.
The firm is another operator settling with New York, the people said. The investigation by Barbara D.
Underwood, the New York attorney general, found that the leases often included clauses that prohibited renters from holding park operators liable for any damage to a home or Cheap trailer for rent sustained in the trajler.
The state negotiated some of the settlement terms with the New York Housing Association, which represents manufactured home parks in New York.
The terms are similar to ones that led a number of state attorneys general, including those in Wisconsin and Pennsylvania, to sue rent-to-own housing firms. Regulators in those states have said the rent-to-own contracts were deceptive.
The rent-to-own home business model has been around for decades, but it gained new currency in the wake of the financial crisis.