A private equity firm owning mobile home parks in Ontario is facing accusations of employing questionable and unlawful tactics to raise lot rents excessively, rendering these previously affordable homes nearly unsellable. Monique Mitts, a resident of Trenton, is holding SunPark Communities accountable for their handling of her late mother’s mobile home sale in Quinte West. Mitts swiftly received an offer upon listing the home in Skyview Estates, a park managed by SunPark Communities. The firm, a division of Toronto-based Firm Capital Properties, oversees multiple mobile home parks in Ontario and one in Calgary.
SunPark Communities retains the right of first refusal to match any offer made on homes within their parks. Mitts requested a lease transfer to the potential buyer to prevent a significant increase in the monthly lot fee, a crucial step requiring approval from Ontario’s Landlord and Tenant Board (LTB). Despite the back-and-forth communication, SunPark declined the transfer, attempting to negotiate with the buyer through Mitts, as revealed in email exchanges.
Several individuals in SunPark communities have reported encountering obstacles from the company hindering lease transfers to enable rent hikes. Realtors and residents have noted instances of SunPark impeding lease transfers to inflate land leases, impacting the market value of these homes. Cheryl Carrier, Mitts’s Realtor, highlighted recurring attempts by the company to engage in potentially illegal practices to secure higher rents, causing distress among sellers and buyers.
In a statement, SunPark defended its practices, emphasizing its commitment to fulfilling statutory obligations and promoting affordable housing opportunities. Stories like Sarah Battersby’s, a resident of Hidden Creek mobile home community, reflect the challenges faced by homeowners attempting to sell in the face of rising lot rents and corporate resistance to lease transfers. The reluctance of SunPark to consider lease transfers has left residents feeling trapped and financially burdened, sparking concerns about the future saleability of these properties.
Realtors and legal experts have raised alarms about the company’s conduct, highlighting potential breaches of landlord-tenant laws and the need for regulatory intervention. Barrett Beaudoin, a licensed paralegal, emphasized the legal rights of tenants in such situations and the potential consequences for corporate landlords found in violation of relevant laws. The systemic issues surrounding mobile home ownership and the challenges faced by tenants in navigating the lease transfer process underscore the need for comprehensive reforms to protect vulnerable homeowners in Ontario.