Industry regulation is happening and it would be nice if all of us took up leadership roles to ensure that what is necessary to run our businesses is considered in the regulation. It would be wonderful to see this community engage with a topic like this. State governments will continue to do this as we’ve seen in both DE and IL.
For tenants, it’s obvious that caps on rent hikes need to be put in place. I’m not going to pretend to be innocent here and these rapid increases are the very definition of what’s wrong with landlords. In addition, the timing of rent increases need to allow enough time for our tenants to make arrangements. Mobile Home Parks are not apartments. Tenants are not able to easily pick up and move so consideration should be extended for that.
Aside from that, there needs to be a balance from a regulatory standpoint to ensure that regulations cannot be viewed as a taking. If an owner has kept their rents low, there should be a mechanism by which to catch those rents up to market rates (HUD should track this). What the media has chosen to ignore is the fact that nearly all of these sensationalized stories are about owners doing that. Bringing the rents up the rent levels of the comparable parks in the local market.
The days of this industry being a wild west are thankfully over. As an owner, you can either participate in moving the industry forward or you can let regulation happen to you. It would be nice to have a balanced discussion here and start moving toward real solutions with our state associations before the government puts them in place for us.