Ask a Lawyer
By: Steven M. Williams
Some of my residents continue to violate various community rules, but my local Magisterial District Judge will not evict them. He says that the rule violations are not serious enough, and he does not want to throw the residents out of their homes based on “insignificant” violations. I am contemplating implementing fines for rule violations. Since my lease states that all amounts owed by the residents constitute rent, I will then try to evict these residents when they refuse to pay the fines—which I know will happen. Can I do this?
The Manufactured Home Community Rights Act does not prohibit you from charging any amounts to your residents except for entrance and exit fees. The Act only requires that you disclose the amount you intend to assess to the residents (in the case of month-to-month leases, by giving at least 30 days written notice of them). So, you can assess fines for rule violations so long as you have properly disclosed them (by first-class mail and posting). The question I cannot answer is whether your Magisterial District Judge will award you an eviction judgment based on the resident’s failure to pay the fines. Since he is predisposed against evictions except for serious violations, you may have an uphill battle here.
Several of my residents want to prepay their rent. Is there any reason why I cannot allow this?
It depends on how much rent the residents want to pay in advance and whether you currently hold a security deposit. In Pennsylvania, a landlord can only hold a security deposit equal to two months’ rent during the first lease year and one month’s rent for each subsequent year. A few years ago, the Pennsylvania Superior Court decided that any money a landlord holds to secure payment of a future obligation must be included in the security deposit amount calculation. Therefore, the amount of the prepaid rent you allow cannot exceed these security deposit limits. For example, if you have no security deposit, residents can only prepay up to two months’ rent in the first lease year. In the second and subsequent years, those residents can only prepay one month’s rent. However, if you have a one-month security deposit, then residents can only prepay one month’s rent in the first lease year. In the second and subsequent years, you could not accept any prepaid rent. The Pennsylvania Attorney General’s office takes landlords’ violations of the security deposit laws very seriously. Thus, I caution you to be careful when considering whether to accept prepaid rent.
Can I collect a fee from my residents if they bounce checks?
Yes, you are entitled to recover a reasonable fee if your residents bounce rent checks. What is “reasonable” may depend on your magisterial district judge. If you simply pass on any fees you are charged by your bank or charge no more than $50, you would be ok with most judges. Note, though, that in order to charge these fees, your lease must provide you with this remedy. Also, these fees must be included in the fee disclosure that you provide to your residents.
I have been told that when I send out violation notices, I should use the phrase “et al.”if I do not know all of the occupants in the home. However, I have also heard that some magisterial district judges will not allow this. How do I send notices out if I do not know who all of the occupants are in the home?
Occupants who have not signed your lease and are simply present in the home with the tenants’ consent are not entitled to any particular notices. If there are lease violations by anyone on the property, your violation notice should be addressed to the tenants who signed the lease. They are responsible for the actions of their guests and others occupying the home. If you need to file an eviction action due to the acts of an occupant, the complaint should name your tenants as the defendants, not the occupants. An eviction order applies to your tenants and those on the property
with the tenants’ permission.
I am thinking about buying a community in Pennsylvania. I own several others, but this will be my first property in this state. What are the top five things I should do before closing?
Awesome question! Many times proper due diligence is not completed in these transactions. My top five list (which is by no means all-encompassing) is:
- Make sure you have written and signed leases for every occupied lot. You would be surprised how many times new owners cannot find signed leases for everyone.
- Make sure you have copies of the titles for every home in the community. In the event of an eviction and abandonment, it is vital to know who owns the home and whether there are any liens against it.
- Make sure that you know who resides in each home. I frequently hear owners complain of unauthorized residents who, we later find, have lived there for years with the knowledge of the prior owner.
- Get an accurate rent roll showing how much each resident pays and the amounts of all security deposits. New owners often face claims from residents that they have paid rent or security deposits that are not reflected on the documents provided by the former owners.
- Get to know the Manufactured Home Community Rights Act. The law in Pennsylvania is different in many respects from the laws of other states.