A family run 48 space MHP, 11 park owned units ,37 tenant owned units. Has been poorly managed for decades and rents are exceeding below market value. The park has some large expenditures coming up in the next fews years, new asphalting, new gas lines, possibly connecting to city water. Can we implement new ways to increase revenue? HOA? Hardship?
Additionally does anyone recommend a MHP Attorney? We’re located in central coast CA area.
You need to read the local rent control ordinance and speak with a specialist in MHP rent control laws.
Some ordinances will allow you to pass through a lot of Cap Ex. Some rent control laws have a “reasonable return” clause.
For Attorneys, I am currently using Sue Loftin for a Dispute with San Diego County RE Title 25
Liquidate the 11 POHs unless it is your desire is to be a brick and mortor landlord. Selling will bring in a huge cash return, eliminate expences and, assuming your rent controls allow it, you raise those lot rents to full market when sold.
You need to concentrate on personally learning all the intricate details of your state regulations. DO NOT leave it to a lawyer to guide you. Capitol expences should allow you to raise rents above allowable increases. Additionally spreading the expences over multiple years may be more benificial that all at once.
Connect with other CA MHP owners to find the loop holes in your codes.
Depending on location, the POHs may or may not be subject to rent control. Every rent control ordinance will be different. You need to understand yours completely. I attached a good cheat sheet for mobile home rent control.
Are you familiar with the utility upgrade program? This program might be a way to save a ton of money when you need to replace the gas system. In California, the utility companies are slowly converting the mobile home park spaces to direct billed for electric and gas.
Sorry to tell you this, but all POH in the State of CA are subject to rent control if the park owns them.
“This bill would extend the rental rate increase restrictions described above to any person having the right to offer residential real property for rent, including an owner or operator of any dwelling or unit in a mobilehome park. The bill would apply to rent increases for a tenancy in a mobilehome occurring on or after February 18, 2021, as specified. The bill would exclude certain mobilehomes from these provisions, including mobilehomes that are not owned by the management of a mobilehome park if notice is provided to the tenant, as specified.”