Question for my Minnesota operators… does anyone know if billing back for trash is considered a substantial modification of a community’s existing lease/rules under MS327C? I know the statute now states explicitly that a water / sewer billback is NOT a substantial modification. But it appears to be silent on trash. Anyone have experience or thoughts on this? Just curious if I can billback for trash or not.
Thanks… I did reach out to them. MHA said reach out to a lawyer. Unless a lawyer sees something I don’t I am guessing they’ll say it is unclear and not specifically addressed. Wasn’t sure if there were Minnesota park owners here that had a better point of view.
I own in MN. Would probably be considered a financial burden not originally in the lease and therefore can’t be part of the rules modification. I would just gross up the rent to include it. The water issue was very different cause it didn’t take into account waste. Hard for your residents to abuse trash.
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Frank says to keep the trash separate from the rent and bill back as opposed to raising rent to cover. This way rents still remain lower/ competitive with market and if (when) the residents’ trash costs go up they will be mad at the trash company- not you.
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This is state specific to Minnesota. Otherwise, I would agree with you.
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We currently have a park under contract in MN, so this is good to know; Any other states you’re aware of where this might also be the case?
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Not specific to this issue, but every state has their own unique regulations. So best to connect with a local attorney and/or someone at the manufactured housing association to find out if there are any other quirks you should know in advance.
We too own in Minnesota, and while I feel that MN is the most regulated MHP state next to California, MS327C can work if used properly. It has been since 2007 that we did a Lease modification, but you are still allowed two rent increases per year and no limit. In lieu of a rent increase, I would modify the Rental Agreement accordingly stating that the residents are responsible for trash with a 60-day notice if they are month-to-month or on the anniversary of their rental agreement when it renews . Depending on where you are at, if you have multiple trash companies servicing your area, you might be able to negotiate a favorable rate for the community.
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