What’s going on?
Residents are saying it’s a trend they’re seeing elsewhere too — corporations are purchasing mobile home parks, and then increasing the rent for this land.
The rent increases have huge negative financial ramifications because many residents rely on small retirement accounts or Social Security payments. Some may not even have any retirement set aside at all and live on fixed incomes, month-to-month.
Peggy Elam is another resident that is feeling the pinch.
Her father-in-law purchased the home in 1994, but the increases in rent — which have now happened several times by as much as $200 or more each time — are squeezing her out of the community.
In tears, she told reporters, “I promised to take care of it and now we may have no choice but to sell it.”
Because so many can’t afford the lot rent, residents are putting up their homes for sale.
Spanish Village HOA President Phillip Roy said that out of the 36 homes listed for sale in the community, 32 are listed because the lease has become too costly.
The issue is also that the increasing rent has made the homes less desirable to prospective buyers, leaving the current owners in a lurch. While homes previously went for as much as $150,000, now prices have gone as low as $30,000.
“People are actually losing their equity in their homes very quickly,” he told reporters.
On their part, The Power Group — the management company responsible for Spanish Village — offered a written statement explaining the rent increases.
The statement says that Spanish Village is, "consistently enhancing the community with impactful upgrades — including new roads, golf course installation, clubhouse renovations, extensive landscaping and tree work, and more."
The company also says that it offers, “resources available upon request to help those who may be facing financial difficulties, including information on nearby organizations that can help with rent assistance.”
But will these resources really help residents who still can’t afford the lot rent?
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Learn MoreWhat options do the mobile home residents have?
There may be some hope by way of House Bill 613 (Mobile Home Park Lot Tenancies) — a piece of Florida legislation enacted last July.
The bill means that mobile home owners and park owners can go to mediation over any lot rent disputes. Until the dispute has been submitted, no civil action can be taken against residents or park owners.
However, State Representative Paula Stark who drafted the bill says that some owners of mobile parks have been enacting strategies to get out of the mediation process. The Florida Department of Business and Professional Regulation is also working with her to determine what loopholes exist in the current legislation, and how these can be remedied.
She also introduced House Bill 701, meant to help mobile home owners pay for rent through financial assistance provided by their municipal government. Unfortunately, that bill didn’t pass this legislative session in the Senate after moving through the House.
How can mobile home residents respond to higher rent prices?
Increasing rent costs are a challenge, but you have several strategies available to you.
Depending on your relationship with your landlord, you can begin by trying to negotiate with them. Perhaps you could ask them to delay the increase so you have a longer runway to prepare for the incoming hit to your budget. You can also suggest a compromise on the rate, to arrive at a rent amount that works for both of you.
Of course, this does require you to adjust your budget at some point, as your housing costs will undoubtedly eat up more of your income (this is unfortunately a trend with housing elsewhere too).
Emphasize that there is value in the track record you’ve established thus far — consistent and timely payments, following lease terms, caring for the property and its upkeep, communicating well and maintaining a positive standing within the community and management. There are plenty of examples of tenants causing problems for their landlords, so demonstrating your trustworthiness can serve you.
If your building is rent-controlled or needs to adhere to certain rules, be sure to take the time to understand what rights you have. Reach out to the appropriate housing authorities if you need assistance or push for mediation.
One mobile home community in Littleton, Colorado even banned together to fight a new corporate purchase with their own $18 million counter offer, turning their homes into a “family business.”
Exploring other housing may help yield other viable options for you, especially if you’re on a fixed income or unable to increase the amount you earn. Consider renting in other areas or living with a friend or other family members to help control costs, if you absolutely need to go this route.
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