Permitted Rent Increases

  • The mobile home park owner has completed or wants to start major improvements to the park and wants to charge the park residents for the work.  Can he do that?
    • For homeowners with rent control, the rent cannot be increased by more than 60% of CPI.  But some spaces are covered by long-term leases that have “rent adjustment” clauses which allow rent increases to cover park improvements, higher property tax, etc.
    • Under rent control, the park owner can still apply to the County for a hardship / rent increase adjustment to cover park improvement costs.  The rent review board will review the application. See the County’s Title 25 – Sections 25.07 and 25.09.
    • For large one-time expenses (i.e., major road repair, replacing a failing septic system), any approved rent increases will be amortized over a 10 or 15-year period.  The new charge or fee shall be shown as a separate item on the rent bill and the expiration date must be shown.
    • NOTE: The Rent Review Board supports rent increases for park improvements that are required by government agencies.
  • The mobile home park owner wants to increase the rent to cover increases in property taxes, maintenance costs, etc.  Can he do that?
    • For homeowners with rent control, the rent cannot be increased by more than 60% of CPI.  But some spaces are covered by long-term leases that have “rent adjustment” clauses which allow rent increases to cover park improvements, higher property tax, etc.
  • Can a park owner separate out the water and sewer costs from the space rent?  The rental agreement says that water and sewer are included in the space rent.
    • Yes, water and sewer can be separated out, but a process must be followed (see California Civil Code 798.41).  The intent of the state law is to prevent any net increase in the space rent for rent controlled spaces.  The park owner must document the average monthly service charge to each space for the past 12 months.  That monthly serve charge must be subtracted from the space rent.  The rent bill must show the space rent and the service charge as separate items. The County must review and approve this documentation.  After that, any future increases to the service charge will be billed to the home owner.  The state law applies to service charges such as water, sewer, gas and electricity.
  • The mobile home park owner wants to pass along new government charges and fees to the park residents.  Can he do that?
    • Yes.  State law allows park owners to pass-through government fees and charges to park residents (but not property taxes).  This applies to fees and charges from city, county, state or federal government agencies, but not from community service districts.  See California Civil Code 798.49.
    • The amount of the new government fee shall be separately shown on the rent bill.
    • For one-time expenses (i.e., government construction projects) the costs will be amortized over a 10, 15 or 20-year period.
  • 90-Day Notice.  California Civil Code 798.30 requires the park manager to provide a 90-day notice for any rent increase.