Raising lot rents


#1

Hello all!

Before raising lot rents are you all just putting a 30-day notice on everybody’s front door or are you guys having everybody sign a new lot rental agreement with the new rent amount?

Thank you,
Gulliver


#2

You have to do a new lot rent agreement, or risk not being able to evict people for non / underpayment. Any tenants under an existing agreement have to have it honored or novated.


#3

@jhutson this isn’t true for every state. Certainly not in Alabama.


#4

I don’t have new leases signed when rent is increased. The lot lease has verbiage to allow for periodic rent increases.

For example, something like this:

  1. RENT: Subject to rent increases and together with any other additional rent, including without limitation, separately metered utilities or other charges, the RESIDENT must pay the following charges each month as Homesite rent:

#5

We do a simple addendum for Texas, and am sort of surprised it can be loosy goosy in other states.


#6

@jhutson oh man, Texas has all kinds of laws you don’t see other places. But I get your point that it SHOULD be law elsewhere.


#7

My favorite among them - “it is illegal to shoot a buffalo out of the second story of a hotel.”


#8

Ha, The the TX Contractual Lien is something i learned from my first manager. Haven’t made your rent payment? Ok lets go hold the playstation ransom and maybe some games in the mean time.

I try to paper a park one time and then go off the rent increase letters but the lease doesnt get updated. While i think in theory it would be good to get new leases each time, i dont know if its required and i have not had any issues and to court i just bring the original lease. Maybe an oversight , or maybe not an issue here. Typically the judge is not really interested in what people say if you haven’t paid the bill on the handful of court rooms i have been in (this is for TX).


#9

Do you happen to know if I can do this in Indiana?


#10

I would read the tenant landlord act specific to MHC if it has it for the ins and outs of what’s required


#11

Owners of MHCs are responsible for knowing all state landlord tenant regulations. If you have not studied your state codes you should not be making any operational changes to your business. If you are not prepare to learn your state codes you should be contacting a qualified lawyer in advance of making any decisions for legal advice.
Landlords have a responsibility to follow all state codes and protect the rights of all tenants. If you are posting on a forum to ask questions you are very likely not in compliance with your state codes and need to cease operations until you have taken the time to study and learn them completely.
Your state landlord tenant regulations are your business bible for operations.


#12

You’re right Greg. I don’t disagree with you. I have read the Indiana landlord-tenant statute:

http://iga.in.gov/legislative/laws/2017/ic/titles/32/articles/31/pdf/IC%2032-31

IC 32-31-5-4 Written notice required to modify rental agreement
Sec. 4. Unless otherwise provided by a written rental agreement between a landlord and tenant, a landlord shall give the tenant at least thirty (30) days written notice before modifying the rental agreement.
[Pre-2002 Recodification Citation: 32-7-8-5.]


#13

I understand your question now.
I would not/do not have tenants sign a new rental agreement. It is not mandatory that they sign a new lease. The fact is a lease automatically becomes a M2M at completion of term in most jurisdictions. Rent increases are generally an addendum to the original lease. The lease itself should indicate that rental rates shall be reviewed annually. Many jurisdictions will provide a official form to send to tenants regarding annual rent increases.
I would not post rent increase notices on residents doors, too easy to claim they did not receive it, they should be sent by mail.


#14

In our 5 Indiana properties, we provide a written lease and mail or hand deliver to each tenant with notice of rent increase. Of course, most tenants do not sign the lease, but a few do. For those who do sign, we archive the file and increase rent as planned. For those who do not sign, we send the lease again by certified mail and raise the rent. If they do not sign, by law, they must comply with the terms if the continue to reside in the community and pay rent. Absent a signed lease, a judge will look at the rental payment history and if they are paying a given amount, the judge will assume that is the prevailing rental amount agreed to by both parties. If the tenant fails to pay , their rental history will be used against them in court. Judges rarely require signed leased by all parties.


#15

Awesome! Thank you. I thought as much but it’s good to have someone confirm this.


#16

Every state is different but everyone knows the rent goes up and if you can prove you demanded it they agree by staying. That’s what a jury of peers would hear. What’s the jury going to say?