Some residents and real estate agents are alleging that a private equity entity managing mobile home parks in Ontario is employing unethical and potentially illegal methods to hike up lot rents to unmanageable levels, rendering these once-affordable residences nearly unsellable.
Monique Mitts, a Trenton resident, is demanding accountability from SunPark Communities for its handling of the sale of her late mother’s mobile home in Quinte West. She claims that the park tried to interfere with the sale process by discouraging potential buyers.
SunPark Communities, a division of Toronto-based Firm Capital Properties, administers six mobile home parks in Ontario and one in Calgary. The company possesses the right of first refusal, allowing it to match any offer for homes within its parks.
Realtors and residents in SunPark communities have reported instances where the company obstructed lease transfers to raise land leases, impacting the affordability of these properties. Cheryl Carrier, a Realtor, disclosed encountering such practices multiple times in Quinte West and Peterborough.
Sarah Battersby, a resident in a SunPark community in McGregor, recounted being denied a lease transfer when attempting to sell her modular home due to increased lot rents. Facing financial hardship, she ultimately had to surrender her home to the bank after failing to sell it.
Reg Major, another resident in Windsor-Essex, expressed concerns about the high land rents deterring potential buyers seeking affordable housing. He highlighted the predicament of inheriting unsellable properties, emphasizing the urgency for lease transfers to be considered by the company.
Ruth Eves, a retiree in the Hidden Valley estates, struggled to sell her property due to the inflated lot fees imposed by SunPark, which deterred interested buyers. After reducing the asking price significantly, she was finally able to sell her home.
Legal expert Barrett Beaudoin pointed out that interference in home sales violates the Residential Tenancies Act, with potential fines of up to $250,000 for corporate landlords. He emphasized the importance of landlords adhering to the legal process outlined in the Act.
Academic David Wiseman highlighted the challenges tenants face in disputes with landlords, particularly regarding lease transfers. He called for a reform of the system to provide better access to justice for tenants and address the growing issue of financialization of mobile home parks by private equity entities.