Question:
“The park manager at the park I live in told me that the park owner has the legal right to “pass-through” to park residents any expense required to operate a property that is not part of the base rent, including things like Cable TV, water, sewer, electric, road maintenance, and property taxes?”
“Is that correct? “Can a mobile home park owner pass on the cost of paying her property taxes to the residents?
– Laurie S, 47, mobile home park resident, Roseville, CA
Answer:
Yes, that is correct if the resident’s signed lease or rental agreement provides for assessments or fees for maintenance, among other services. If not mentioned in the lease, a new fee would have to be for a service actually rendered, such as trash pick-up, and would require a 60-day advance written notice. (Civil Code §798.32(a)) If the resident signs a new lease or rental agreement that includes these fees, they are agreeing to pay the fees. CA State law does not require a notice requirement for an increase in an already existing fee. Local jurisdictions with mobile home park rent control ordinances may regulate fees or pass-through costs which parks charge their residents. Some ordinances, for example, distinguish capital improvements from maintenance, allowing a pass-through fee of certain capital improvements (not including maintenance) amortized over a period of time.
Overview:
- State law does not regulate the amount of a rent increase. It is a local control issue.
- A 90-day advance written notice of rent increase is required.
- If a resident is on a long-term lease, check the language in the lease for frequency (not less than every 90 days) and percentage of increases.
Source: 2022 California Mobilehome Resid
