LOUISVILLE, Tenn. (WATE) — Mobile home living was always considered affordable, but more and more mom-and-pop mobile home communities are being purchased by institutional investors who see the parks as lucrative, low-risk investments, leading to significant rent hikes.
Owners and renters at a mobile home park in Blount County were informed about the sale of their community on the first of January. One resident, Sherry Russell, found out that her lot rent would increase on February 1 by 70%, and within six days of taking over ownership of the trailer park, the new owner sent her a notice saying her lot payment for January was late, but she says it’s not.
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Russell, a hairstylist, has lived in Louisville for nearly 13 years. She owns her mobile home and rents the lot. The community where she lives was called Wilson Properties. To her surprise, she received a notice on January 1 that Volunteer Runway Communities has assumed ownership and her rent would be increasing from $350 to $599 on February 1.
In the notice, Volunteer Runway Communities explains its reasoning for the rate hike, writing, “We look at our current lot rents and compare them to the rates in the surrounding market. After much deliberation and a thorough review of all information, we are increasing your lot rent.”
Someone from Volunteer Runway Communities left the notice outside Russell’s home. It had been tacked to the gate on her front porch…