Questions and Answers on Mobile Home Park Agreements and Leases

Questions and Answers on Mobile Home Park Agreements and Leases

1. Are There Any Advantages In Offering Long Term Leases For Mobile Home Park Residents?

Yes, the law states the requirement of the park to offer a written rental agreement with every resident of the mobile home park. Current law allows a lease of less than twelve months if requested by a resident. By offering a longer term lease, the park owner receives immunity from local rent control ordinances under Mobile Home Residency Law (section 798.17) for the length of the lease.
In addition, a longer term lease can promote harmony within the park community. It avoids the difficult job of notifying residents of the annual rent increase. Upon signing the initial lease, the resident acknowledges the formula for rent increases, and is clearly notified of the periodic adjustment of rents.

2. What Are The Disadvantages, If Any?

One of the things that can be affected by a long term mobile home park lease is the appreciation of the property, due to the inability to increase rents. In addition, unanticipated expenses may be problematic. Therefore, it is very important initially to give proper care and considerations to the wording of the leases and give careful attention having appropriate provisions within the leases which are being offered.

3. What Are The Types of Leases and Agreements I Should Consider for My Renters?

Legally speaking, each resident should have a written rental agreement with the park owner on file. In reality, for various reasons, some residents have not ever signed a lease or rental agreement. In that case, their tenancy is considered to be that of a month-to-month resident. As such, the owner should ensure that a month-to-month agreement is signed by both parties. If the tenant does not want to have a long term lease, a one year agreement would be advised.

4. What Is the Recommended Length of a Long Term Lease?

Technically, speaking, a long-term lease is a lease which has a term in excess of twelve months. Generally speaking however, most parks do not offer long-term leases for less than three years. It is not recommended that you have a lease for longer than five years, as you must supply the California Department of Real Estate (DRE) the lease for their review and approval.

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