Hi Folks,
We have been contemplating the idea of billed back trash but have been doing it slowly be billing back water/sewer usage first. I guess our worry is if we will encounter pushback on billed back trash cost. What are other park owner’s experience? What’s the best approach to make it a smoother process. Thanks for your comments.
Easier to raise the monthly rent and just include your cost into their monthly rent. Recently was made aware of park owners taking their real estate tax bill and dividing by the number of sites and billing the amount in Jan. for prior year taxes. Do you have meters so people are actually paying their usage—question how fair when some resident try to be very responsible. We just keep it simple and just bill monthly rent and use private utilities except electricity. Has anyone been questioned by the states utilities board from residents believing that they are being charged an ??? amount??? Joe is working on rent control—not sure in the future what is best after 35 years in the business. Need to have an open mind to do what works best in a very cantankerous world!!!
We bill back for garbage at our communities. Took the monthly bill and divided it by the number of lots. Went ahead and called all local municipalities to make sure we weren’t charging more than they do. In every single case the local municipality was 50% more expensive than ours.
Also helps when renting lots because 21st Mortgage doesn’t use utilities to under write if resident qualifies for new home loan.
And last, when potential residents call they never ask about utilities. All they want to know is “what is lot rent?” So if you’re including trash in your lot rent, but your competitor isn’t, your overall monthly costs may appear higher to a potential new resident.
Hope that makes sense.
Water/sewer/trash billing:
We have found the best approach is to first clearly communicate to your residents (asap):
I am happy to share samples of successful resident notices concerning utility/trash billing.
I would not worry if you will get pushback on billed back trash cost because I can assure you that you will have pushback. Anytime you charge for something that was “free,” you will get pushback. That being said, the pushback usually settles down after 2 to 3 months, so it is not an issue. After that timeframe, it is the new normal.
We bill for trash at some locations, but not all. Unlike water and sewer, billing back trash will not reduce your costs for these services. Billing back versus increasing rent to cover the cost is not that much different in my opinion since the cost per tenant is fixed.
The Best way to start billing for any service is to send out a rent increase for the service.
IE Dear Space X.
Due to increase volatility in the trash service prices we are now billing for trash service. Over the past 12 months, the trash bill has averaged $17.88/space/month. Effective xx/xx/2023 trash is no longer included in the rent. This is your 90-day notice of rent increase. Your rent will go up by $17.88/month. We will then lower your rent and begin charging you for Trash services.
Sincerely Management.
Be sure to check your local laws for specific requirements.
I highly suggest you bill for all services. Nothing should be included in the rent.
Why? Let me tell you a little story.
One of my parks has curbside trash service through waste management. One day we get a little letter in the mail that says “We see your trash cart was overfilled. Here is your overfill charge. $100.00”
The next week we get another letter that says “We see your Recycling cart is contaminated. Here is your $30.00 charge”
Then we get another letter that says “We see your Recycling cart is overfilled and Contaminated. Here is your $100 Bill for overfill and $30.00 charge for Contamination.”
Each notice includes a photo and a link to a short video. No way to dispute.
Now multiply that by 68 spaces x 4 times a month pickup service. One month our “extra charges” were over $2500.00. Luckily, this park bills for Trash service. We passed this expense right on to the tenants.
After we got a bunch of pushback for the overages. We painted each trash bin with space numbers so we could identify the culprits.
My worst-case scenario monthly fees could be $27,200/month for overfilling trash bins.
Plus $27,200 for overfilling the recycling bins
Plus $10,200 for Recycling Contamination.
https://www.wm.com/location/california/north-valley/shasta-county/index.jsp
If we did not bill for trash we could have been stuck paying these charges.
Last year our township decided to give one company the contract for whole township and so all residences pay a flat rate of $87 per quarter. Because we are a commercial venture, we pay a private company 1/3 of that. The township initially tried to include our homes, sending bills to the residents, until I was able to straighten that out.
As it is, I pay for trash, though we are shifting water to the residents this year. Water usage increased 30% each of the last two years and my manager has had enough of monitoring how much water people are using, if they have leaky fixtures, or leave a little water running when they go south. I anticipate pushback and am giving plenty of warning, and explaining why.
When I moved from dumpsters to individual totes, I added individual billing. The lot rent increase for that year was lower however so a not to hit residents too hard.
Hi Dan,
Very well said. I’d be interested in the sample notices you mentioned in your response to this question.
Warm thanks,
Michael
YOUR PARK NAME
1234 Your Street
Redding, CA 96003
90-Days’ Notice of Intent to Cease Trash Services
February 10, 2023
[Homeowner Name]
1111111 Lake Blvd., Space [space #]
Redding, CA 96003
[Homeowner Name]:
YOUR PARK NAME MHP will cease all trash & recycling services to all the mobile home spaces on 5/15/2023. On or before that date, please arrange individual residential trash and recycling services for your home & space. After 5/15/23, or upon transferring to individual services, the Homeowner at each space will be directly responsible for arranging services and for all waste service charges & obligations.
After 5/15/23 or upon receiving written notice (with a clear effective date) from the Homeowner transferring service with Waste Management, the park will no longer charge the homeowner or provide any future trash or recycling services to the space. You may switch your service over to an individual residential account at any time and we will prorate the final bill to the effective date. The Homeowner will remain responsible for any past charges due. Please submit all written service transfer notices to the park office for processing and notify Waste Management to remove your space from the park’s commercial account.
You may contact Redding Waste Management Residential Services at: (530) 221-4784
The park has made this change at the request of multiple Homeowners and to reduce it’s management load due to the many issues, complaints, and costs involved with the trash overage and recycling contaminations charges. Please contact us with any questions.
Cordially,
Management
YOUR PARK NAME
Those fines are absolutely ridiculous, these trash companies are absolute thieves.
Thanks guys! Super helpful and lots of great wisdom here! Will implement based on the comments I’m receiving here and I’ll post a follow up. Thanks again
It’s like the mafia…
