Tenant-Owned Home (TOH)

A mobile home owned by the resident, who pays only lot rent to the park operator.

A tenant-owned home is a mobile home or manufactured home owned outright by the resident, who pays only lot rent to the park operator. TOH is the most stable arrangement for both parties — the operator's income is durable and the resident builds equity in the home. Because moving a mobile home costs the resident roughly five to ten thousand dollars in transport plus reinstallation, TOH residents very rarely leave a park, leading to turnover rates well below comparable apartment portfolios. Agency lenders strongly prefer TOH-heavy parks because the income is sticky and the asset (the dirt) doesn't depreciate. Most operators target a TOH percentage of 70 percent or higher across their portfolio.

Related Terms

Lot Rent

The monthly fee a resident pays to rent the lot their mobile home sits on, separate from the home itself.
Park-Owned Home (POH)

A mobile home owned by the park operator and rented to a resident, who also pays lot rent.
Rent-to-Own (RTO)

A 36–60 month contract that converts a park-owned home renter into a homeowner once the principal is paid down.

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