A private equity firm managing mobile home parks in Ontario is under scrutiny by homeowners and Realtors for allegedly employing unethical practices to inflate lot rents, rendering the homes unaffordable and difficult to sell. Monique Mitts, a resident of Trenton, has raised concerns about the handling of her late mother’s mobile home sale in Quinte West by SunPark Communities, a division of Toronto-based Firm Capital Properties. Mitts had a potential buyer for the mobile home located in Skyview Estates, operated by SunPark, but encountered obstacles when requesting a lease transfer to the buyer to maintain the current monthly lot fee.
Several individuals, including Realtors and residents, have reported instances where SunPark obstructed lease transfers to increase land lease fees. Cheryl Carrier, Mitts’s Realtor, highlighted repeated occurrences of such practices in Quinte West and Peterborough parks. The issue is particularly impactful as these homes, originally mobile, are now categorized as manufactured or modular homes, typically priced under $200,000, amid a national average home price exceeding $682,000 in November.
Residents like Sarah Battersby in Hidden Creek mobile home community have faced challenges in selling their homes due to escalating lot rents, resulting in financial strain and difficulties attracting buyers. Regulatory experts like Barrett Beaudoin have emphasized the importance of adherence to the Residential Tenancies Act to protect tenants’ rights and prevent interference in home sales. The broader issue of affordability and access to justice for tenants in Ontario’s housing market has been a subject of concern, with calls for systemic reforms to address the exploitation of residents by private equity firms like SunPark.
The involvement of private equity firms in mobile home ownership poses challenges to housing affordability and tenant rights, with growing instances of financialization impacting residents across Ontario. The current regulatory framework and dispute resolution mechanisms are deemed inadequate to address the evolving landscape of mobile home ownership, necessitating urgent reforms to protect tenants and ensure fair treatment in the housing market.