Most people living in manufactured homes own the home itself, but must pay rent for the land where it sits. The reason for this is states require mobile homes to be restricted to mobile home parks for aesthetic reasons more often than not. Another issue residents face is the misunderstood notion that mobile homes are just that - mobile. More often than not, they are on foundations and today, tend to be double-wide or even triple-wide sizes. This means that in order for them to be moved, they must be dissembled, placed on to separate oversized trucks and then given permits to be moved, a process that can cost up to $30,000.
Mobile home park owners argue that in order for them to profit from the land, these rent increases are necessary. However, in many cases they are looking for a very short-term return on their investment and are unwilling to wait the 15 or so years it can take.
For renters, the issue is that of being backed into a corner by the escalating rent. Nationally, residents of manufactured homes tend to be of retirement age, although in some states such as Texas younger families are moving into this more affordable housing option. With low and fixed incomes the norm, rent increases mean that the tenants have to budget their funds differently, allotting less money for food or medicines in order to pay the rent increases. However, when the landowners increase rent every 90 days, as they legally can, eventually homeowners are forced to default or sell their homes because they can no longer incur the costs, leaving them with few options. At this point, their homes can sell for as little as $2,000 because no one wants to reside in a park with such high rent.
Residents of these parks have been banning together to try to stave off the rent hikes, with little success. Constitutionally, they often have no backing. Additionally, filing lawsuits means money and many times, up to 8 years of litigation, with continual rent increases in that time period. As with older tenants, they often die before the suit comes to any decision, and class action lawsuits aren't an option.
I think this is a serious issue that hasn't received much attention - mobile homeowners aren't given the same protection as apartment renters or homeowners. In today's economy, more families and older people are facing financial hardships, and mobile homes are an option for affordable housing...but when you factor in these escalating rent costs, that option often disappears. Additionally, for the landowners, how do they expect to fill the parks and make any kind of returns at all unless they are able to attract renters? If they decide they'd rather sell the land, they still have to pay penalties in most states to help offset the cost of relocation for tenants, and those penalties can be an enormous sum. I think there needs to be a little give and take here; a Rawlsian look at the situation could benefit everyone.
Some states, such as Arizona have passed law to protect/help these manufactured homeowners. They require the park owner to cover the costs of moving for tenants who are forced out due to rapid rent increases. In Texas, the Southwest Consumers' Union has published several reports about the state of the 1.2 million Texans who live in mobile homes. They have found that rent increases in some parks are illegal and in others, are simply unethical. The Consumers' Union is encouraging rent control laws be put in place. In several counties in California, these very rent control laws are being taken to court by landowners and the cities are defending their mobile home residents. I think this shows strong support of their community and is an encouraging advance.
Overall, the current situation cannot benefit either side. The landowners are being thrown into costly litigation and are losing return on their investment by driving away renters. The homeowners' lives are being turned upside by the unreasonable increase. I think a couple of things need to take place. Firstly, landowners need to listen to their tenants and realize at what point rent is too high. They should also create a fund to help offset costs for residents who are forced to move because they can't afford rent. Secondly, I think more cities and states need to get behind their community and enact rent control laws to cover the residents of manufactured homes that are similar to laws applying to apartment renters. Only then, I think, can you begin to see the fairness that would be mutually beneficial.
No comments:
Post a Comment