What my broker said about seasonal tenants not actually leaving changed how I'm reading every lease
Had coffee with a broker Friday who's sold maybe a dozen campgrounds in the northeast over the last four years. He said a lot of seasonal tenants at the parks he's moved treat their site like de facto property and just stop paying rent when they have a dispute rather than leaving, and the eviction process runs through landlord-tenant law in most states, not a simple trespass removal. He said he's seen it take eight months in New York. Eight months of a site sitting with someone's trailer on it, generating nothing. I've been underwriting seasonal revenue like it's reliable because it's paid upfront for a chunk of the season, but he was describing situations where the upfront money gets eaten in the dispute and then you're stuck anyway. I'm getting licensed right now and I'm nowhere close to buying anything, but I keep coming back to this. Every seasonal lease I've looked at as a learning exercise treats the tenant relationship like it's simple. I don't think it is.