Rent control policies can have a major impact on your manufactured home community and business. These policies are often put in place to protect residents and renters from being displaced due to extreme price jumps in rent and fees but can negatively impact community owners when laws fail to account for rising operational costs, maintenance, and fair returns on investment. This is particularly challenging during times of high inflation when the cost of doing business increases.
Rent Control Policies & Manufactured Home Communities
There are many states and cities around the country that have various rent control policies in place, and it has become a hot topic in today’s environment. Failure to comply with rent control policies can result in significant fines and penalties. These policies often allow tenants to file a lawsuit against community owners if the rent exceeds the cap.
These policies can also have a negative impact on the residents and the community as a whole. When these policies are too restrictive, they can limit revenue, making it difficult to perform maintenance and regular repairs due to limited funds. As a result, the overall condition of the community and the quality of life for residents may deteriorate.
What Community Owners Can Do
Be Proactive – Learn what industry associations and groups are in your area and get involved. These groups often work with lawmakers to develop fair policies for community owners and tenants. It is also important to create a financial plan for your business, setting aside funds for unforeseen future circumstances.
Stay Aware – Knowing and understanding the laws in your area will help you avoid fines and potential lawsuits. The policies and laws surrounding rent control can and do change periodically.
Communicate with Residents – Make sure you establish an open line of communication with your residents whenever there is a rent increase. Keep your residents informed about upgrades and maintenance plans and explain how overly restrictive policies can limit the community’s ability to make necessary improvements and repairs.
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