Ask a Lawyer

I have been reading a lot about “junk fees” and how the government is cracking down on landlords who charge too many or high fees. What can you tell me about that?

The Federal Trade Commission and the Attorney General’s Bureau of Consumer Protection have begun focusing on “hidden and misleading fees” in consumer transactions, including leases. They are focusing on charges that are unreasonably high or are hidden, unnecessary or disconnected from the actual cost of a service. Examples of fees that are under scrutiny include, but are certainly not limited to, late fees, utility administrative charges, hearing attendance fees, application fees, pet fees and online payment convenience fees. The problem arises where the amounts of these fees are less related to the actual costs a landlord incurs and look more like profit centers. To position yourself to better withstand scrutiny, you should ensure that all amounts that are charged to your tenants are clearly and conspicuously disclosed and that the amounts are connected to the actual costs you incur. In simplest terms, most of these charges should be designed to merely reimburse you, not add to your profit.

 I have been told that my rules and regulations are not compliant with the law. From my perspective, this is my property, and I can require and prohibit whatever I want. Am I wrong?

You may be. Under the Manufactured Home Community Rights Act, you are entitled to enact only “fair and reasonable rules and regulations reasonably related to the health, safety and upkeep of the community.” If any of your rules do not fall within this definition, they will likely be unenforceable. If you have questions about your rules, I suggest that you have your attorney review them on your behalf.

After a resident abandoned her home, I completed the abandonment process. However, I have not yet gotten around to removing the home from the community. It is in very bad shape and is of no value. The local taxing authority is billing me for taxes on the home. I thought that all taxes were the responsibility of the homeowner. Do I have to pay the taxes?

It depends. If you are being asked to pay taxes that were due prior to the completion of the abandonment process, you are not responsible to pay them. Under the abandonment law, you can remove or destroy the home “free and clear” of any taxes that are owed. If, however, the taxes are for the period after the abandonment was completed, then you may have to pay them. In essence, for tax purposes, once the abandonment process has been completed, the community owner becomes the “owner” of the abandoned home. There are a lot of issues to be considered in order to determine the extent of your liability. Thus, I recommend that you consult with your attorney to determine whether you have to pay the taxes.