Anyone investing in this company is abetting a firm that thrives on abusing the elderly. When I originally purchased a home in one of their villages, I realized automatic increases of 41/2% yearly were extremely high, but the price was modest. The homes are prefabricated and I was to learn later that this put them in a category of mobile homes, giving management freedom of customary regulations, such as those that afford protection for condominium residents.After 15 years of residence,my monthly maintenance fee has doubled from $350. to $700. which is much higher than maintenance fees in surrounding communities, with homes priced three to seven times the original purchase price..However, I signed the agreement and I understand that I am legally bound.
About four years ago, management determined they are entitled to a larger profit, and arbitrarily decided that
any new purchaser must pay a monthly fee starting at $800. to $850. plus a 41/2% yearly increase. Before the monthly fee was raised, the market price of these homes were $100K to $250K. Despite the drop in home prices, sales continued because the homes satisfied the modest demands of buyers. As a result of the increase, it is now virtually impossible to sell a home. In a community of 550 homes with about 50 homes now vacant, as owners die of old age or other reasons, the management is fulfilling its plan through
judgment and takeover of the properties and renting them out.
My home was on the market for 55K and the market price before the raise was 115K.Now, I would be lucky if I could get 10K and most likely will have to forfeit to management. Unfortunately, we live in a society that is degenerating and allows for the abuse of its citizens so the rich may get richer.
I totally agree with you. They keep raising the rent and we get nothing more. They keep overcoating the roads in the community instead of tearing them up and doing it right. I bet just 1 months of rent of everyone in the park would pay for a whole overhaul of the roads. Let's do away with the raises for the employees for 2 years, After all, our Social Security doesn't get raised every year. They always want a piece of the pie annually. But they don't stop to stop to think, so does everybody else. With all the increases annually, that could throw off a monthly budget horribly by over $100.00 per month. Where's the justification?
They raise the rests, but 80% of employees haven't had raises in years - due to "Hard Economic Times" - of course in the last 5 years ELS purchased 3 companies for hundred of millions of dollars. Residents are still unhappy, but share holder dividends increase and executives still get their bonus. A few executives have bailed int he last 2 years. Make you wonder what's really going on - I sold my shares years ago and haven't regretted it one bit.
Thanks for your input and concern because I also live in an ELS community - which I bought a few yearsago as a summer home. Being new to the manufactured home ownership world is interesting to say the least, with the land rent fees and the yearly increase you mention a concern. However, because we have a great activist community of intelligent retirees (like yourself) on fixed incomes where I live, I receive lots of information on things like local legislative clauses and protection for our properties - one of which is the ability of the existing homeowner to transfer his land rent contract onto the new home owner. The catch here is that at the time of sale, you need to send a note to the company 30 days ahead of time with your intention of doing this. The company makes out if the owner doesn't offer and the buyer isn't aware of this. I don't know if this transfer right is somewhere in our contract or established as state law so it may not apply. Also, I have learned just recently that my state has legislation going through that will cap these yearly increases to something more reasonable....
That being said, I do think that ELS has a right to some sort of yearly increase. They provide a service to the community by tending to the grounds; maintaining the pool and roads; trash removal; paying property taxes; and, other costs that will also rise with the times. Not to mention keeping the ELS shareholders happy.
The happy story on the horizon is that the real estate industry is on the mend and this will mean increased valuation on your property - If you don't need to leave in the next two years. Good luck, sir
The doctor, the gas station, the grocery store, the pharmaceutical companies, and a long list of other companies are also stealing from grandma. Please don't invest in those either. Invest in either Coke or Pepsi they haven't raised Grandma's price for a can of soda much over the past 10 years.
Oh wait, they are giving too large a portion at a low price and making junior fat. Better not invest in them either.
this firm is just a lying piece of trash to all that it sells to. It misrepresents its intentions and masks its plans with things that look good but ultimately are not what they were made out to be. There are many rv park memberships and gated community homeowners that this firm has stolen from. Lets not sugar coat them by saying that all prices have risen.