The residents contend that Kaplan & Tatum and Mobile Community Management Co. has engaged in unfair, unlawful and/or fraudulent business practices and have not maintained the parks at a level or manner that would justify the outrageous rents they are charging. Sewage spills and water leaks are a constant problem because of the age of the pipes.
Kaplan & Tatum buy up mobile home parks and raise the rents to the point that it becomes impossible for the residents to stay in their homes or resell them, leaving them only two options, which is to walk away or be evicted. The park is than able to gain ownership of home at minimal cost to them and then turn around and resell it at below market value and at the same time bring in new residents at a lower space rent than what the current resident can offer. When a resident sells their home the new owner must take over the current residents lease and pay an additional 10% more in space rent. The cycle then begins again with the new owner.
It is also our contention that they are engaging in non-competitive practices as outlined in the California Business and Professions Code Section 17200-17210.
Why would Tatum-Kaplan want to drive out residents? One possibility is raised in the Santa Clara County district attorney's complaint against the Tatum-Kaplan partnerships and related defendants in San Jose. The complaint charges without specifying details that the Tatum-Kaplan partnerships "are purchasing mobile homes abandoned by resident who cannot afford the rent and reselling them for a profit. By raising rents to a point where tenants abandon their homes, (the Tatum-Kaplan partnerships)
