In the case of the tenant/resident who already occupies a space in a community without a Rental Agreement, a written agreement should be prepared and presented to the tenant for signature. The written agreement should incorporate the basic provisions of the existing oral agreement. If the tenant refuses to sign the agreement try to find out the basis of the tenant's objection. If changes can be made that are satisfactory to you and the tenant, then the changes should be made in agreement, initialed, signed and dated. If the tenant still refuses to sign the Rental Agreement, whether changed or not, you should give or mail the tenant a copy of the Rental Agreement that the tenant/resident refused to sign. The date of the mailing or delivery should be indicated on both your copy and the tenant's copy. If mailed, keep a copy of the cover letter that you send along with the tenant's copy of the Rental Agreement. You cannot force a resident to sign a rental agreement if they have been living in the community without a rental agreement.

ORS 90.710 (2) (d) allows, "Notwithstanding ORS 41.580 (1), if a landlord and tenant mutually agree on the terms of an oral agreement for renting residential property, but the tenant refuses to sign a written memorandum of that agreement after it has been reduced to writing by the landlord and offered to the tenant for the tenant's signature, the oral agreement shall be enforceable notwithstanding the tenant's refusal to sign". 

The required provisions of a rental/lease agreement are covered in ORS 90.510(5). These requirements include:

1. Location and approximate size of the space.
2. Federal Fair Housing age classification.
3. Monthly rent.
4. All personal property, services and facilities to be provided by the landlord
5. All deposits (refundable and non-refundable), fees and installation charges including government fees.
6. Improvements the tenant may or must make to the space or unit including plant material and landscaping.
7. Provisions for dealing with improvements to the space.
8. Any conditions the landlord applies in approving a purchaser of a manufactured dwelling or floating home as a tenant in the event the tenant elects to sell the home. This should be identical to the community's screening criteria.
9. Term of tenancy.
10. Processes for change to rules and regulations.
11. The process by which notices shall be given by either landlord or tenant

All of these provisions are included in the MHCO Rental/Lease Agreement

(MHCO Form 5A and 5B) 

As a community manager, you will normally be charged with accepting or rejecting prospective residents. This is one of the most important functions that you will perform as a manager of a manufactured home community. Done properly and effectively, the rental application and screening process will minimize potential problems in landlord - resident relations. If the process is done incorrectly the seeds of future problems will be sown. Every prospective resident should be given sufficient information to make an informed decision about living in a manufactured home community.

When an individual stops by the manufactured home community office inquiring on the possibility of becoming a resident, always give them an application packet. Anyone who is interested in applying should be given the application packet - inconsistency in giving out application packets could lead to cause of action by the resident selling the home in the community or a fair housing violation.

The application packet is your opportunity to sell the prospective resident on your community. Include in the application packet an application and "Minimum Criteria Standards", optional information may include what homes are available in the community, a community newsletter, information on the history of the community, the advantages of living in a manufactured home community etc. You may also want to include at this time a copy of the rental/lease agreement, rules and regulations, rent history, and statement of policy. Remember, you want to sell the prospective resident on your community, but you also want them to make a well informed decision.

Providing a prospective resident's with extensive information regarding your manufactured home community allows the applicant to evaluate for themselves if they qualify. Including what your expectations are in order to qualify and expectations and requirements to maintain residency in the community allows the prospective resident to self qualify.

The overall rental application process should include:

1. Review application to make sure it has been completely filled out.
2. Check to make sure that the applicant has included social security number, driver license information etc.
3. Provide the applicant with a copy of the Statement of Policy (keep a signed copy or receipt for your file), the rent history of the space, Rental Agreement/Lease, Park Rules & Regulations, RV Storage Agreement and Pet Agreement (if applicable), and a Flood Plain Notice. None of these documents should be signed by the community owner or manager until the application process is complete and the prospective resident is accepted.
4. Collect application fee.
5. Provide prospective resident with application fee receipt.
6. Conduct credit, rental and criminal check.
7. Attach copies of credit, rental and criminal check to application
8. If credit, rental and criminal checks are acceptable contact prospective resident.
9. If they are denied and they are purchasing an existing home in the park, send them an application denial form. Also, send a copy to the resident selling the home and one for the tenant's file.

Under current Oregon law you will have not more than 7 days to accept or reject a prospective resident. The 7 days begins on the day of receipt of a complete and accurate written application. The landlord and the prospective resident may agree to a longer time period for the landlord to evaluate the prospective resident's application to address any failure to meet the landlord's screening or admission criteria.

If the existing resident fails to give the required 10 day notice in writing prior to the sale of the home, the landlord may extend the written application process by 10 days. (ORS 90.680)

An application is not complete until the prospective purchaser pays any required applicant screening charge and provides the landlord with all information and documentation required pursuant to ORS 90.510 including any financial data and references. 

MHCO Note: At the time of this printing, the Federal Trade Commission still has the effective date for enforcement of the Red Flags Rule as December 31, 2010. Exemptions for specific industries have been granted as late as the first week of December 2010. MHCO and MHI are conducting research on this topic and will be providing additional information as it becomes available. The Federal Trade Commission link is http://www.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml and contains a lot of information that should be of interest to community owners and manufactured home community retailers. If you are subject to the new rule there is a template developed by the FTC for businesses at low risk for identity theft at this site. While we are still looking into this and monitoring developments in the Congress, it is likely that if a community owner is not billing for utilities, is not providing loans for residents purchasing homes, and is not acting as a retailer selling homes, they are not probably covered by the Red Flags Rule.

The "Red Flags" Rule: What You Need to Know

As of June 1, 2010 the Federal Trade Commission has begun enforcement of the 'Red Flags' rule which mandates creditors and financial institutions to implement identity theft prevention programs. It's important to spend some time discussing the rule, including what it is and what it means for you

The "Red Flags" Rule - In Plain English

The full title is this: "Identity Theft Red Flags and Address Discrepancies under the Fair and Accurate Credit Transactions Act of 2003" (FACT). It amends the Fair Credit Reporting Act (FCRA). The rule was written specifically for companies making loans, such as banks and commercial lending institutions, but a portion of it extends to rental property owners and managers since both rely on consumer reports (e.g. credit) that (1) ask for sensitive information, such as social security numbers, and (2) could turn up address discrepancies. The philosophy behind this rule is simple: sensitive information must be kept secure to prevent identity theft, and a discrepancy in address could indicate fraud.

The rule requires that "reasonable" policies be in place to prevent identity theft and to verify a person's identity when an address discrepancy is reported. In the case of address discrepancy, if the property manager can't work out the discrepancy, the rule says he/she is not to rent to this individual.

What the Red Flags Rule Means for Rental Owners & Property Managers

While the rule has caused some confusion, compliance is straightforward. More than likely, you're probably already in compliance since the only thing that rental owners or property managers have to show is that they have a "reasonable" process in place for preventing identity theft and for checking IDs, verifying IDs, and following up/asking about any discrepancies.

For example, how do you destroy electronic and paper records that contain sensitive information? Or how about this: if someone gives one address on his or her rental application, but the license lists another address, what's your policy for handling this situation? As long as you have reasonable policies in place, you're in compliance.

Do I need to create a special report if I suspect fraud?

The other commonly asked question about the Red Flags rule (beyond "how do I comply") is this: do we need to report suspected fraud? The answer - for better or worse - is no. If you believe someone is trying to perpetrate a fraud, there's no requirement beyond not renting to this individual.

Still Unsure About the Red Flags Rule? Contact Your Screening Partner

Laws, rules, and amendments result in legitimate questions and concerns, so we understand people's trepidation regarding the Red Flags rule. While it's true that you're likely already in compliance, it can't hurt to contact your screening partner and ask to review with them your policies and systems.

For full details, visit the FTC website at http://www.ftc.gov/redflagsrule

The information in this article should not be construed as legal advice. Always consult an attorney for questions regarding legal matters and compliance.

ScreeningWorks is a service of RentGrow, Inc. the resident screening experts (www.ScreeningWorks.com).

For more information please contact info@screeningworks.com or 888-401-7999.

Look for more information on this issue in future issues of MHCO's "Community Update". 

When any existing resident intends to sell their manufactured home the resident must do the following:

1. Give the landlord a written 10-day notice of their intent to sell their manufactured home. (Note: The 10 days will run parallel with the 7 day application process - i.e. if the resident notifies the landlord of intent to sell the home and does not give the 10 day notice, then the application process time to approve or reject will take 10 days rather than 7 days.)
2. The existing resident must advise the prospective purchaser that they have to fill out an application with the landlord and be approved.
3. Do not move anyone into the manufactured home that has not been approved through the tenant screening and approval process.

If you are aware of a sale and do not have the purchaser fill out an application, or fail to advise the seller and prospective purchaser in writing that the application has been rejected within 7 days after they fill out the application, then the purchaser can move into the mobile home under the same condition of the rental agreement of the seller. Basically, they assume the existing rental agreement you have with the seller of the manufactured home.

If a prospective tenant refuses to provide you with the necessary information for you to qualify them, then it is an automatic denial of the applicant.

It is important that an application is filled out and you check out the person carefully. You should check them out the same as you do any prospective resident. You do not have to approve the person just because they are buying an existing home in the park. If they have a bad credit or rental history, they can be refused as a prospective tenant. This does not necessarily kill the sale of the mobile home. They can still purchase the home, they just cannot keep it in the park. You need to provide a written rejection to both the seller and prospective purchaser within 7 days. You need to advise them why they were not accepted. If you denied them for credit reasons, give the applicant the name and phone number of the company who provided you with the report. Advise the applicant that they can call them if they have any questions regarding the report.

It is important that you advise anyone that has a "For Sale" sign on their manufactured home that they do the three things listed at the beginning of this section. Failure by the prospective resident to fill out an application or the landlord's failure to advise them that they do not qualify can be a very costly mistake in the event they move in and then you give them notice. It makes for ill feelings for everyone involved.

If a resident sells their home and the new owner of the home has not filled out an application prior to moving into the home, you do not need to accept them as a resident. You have no contract with them and you can request them to remove the home from the park. DO NOT ALLOW PROSPECTIVE TENANTS TO MOVE IN BEFORE THE SCREENING PROCESS HAS BEEN COMPLETED, AND THE APPLICANT HAS BEEN APPROVED AND SIGNED, AND RECEIPTED FOR THE STATEMENT OF POLICY, RULES AND REGULATIONS AND RENTAL AGREEMENT. DO NOT ACCEPT RENT FROM ANYONE THAT YOU HAVE NOT APPROVED TO LIVE IN THAT HOME. If you accept rent before you qualify them then you may have established them as a tenant. Simply tell them that you cannot accept the rent until they fill out an application and are accepted by the landlord. DO NOT HAVE ANYONE SIGN A RENTAL AGREEMENT UNTIL YOU HAVE RUN CREDIT, RENTAL AND CRIMINAL CHECKS ON THEM AND THEY HAVE BEEN ACCEPTED. If any of the reports come back unfavorable there is nothing you can do about it because you have established them as a tenant by signing the agreement/lease. 

Items that are prohibited from a Rental Agreement are covered in ORS 90.245. The following items are prohibited from inclusion in a Rental/Lease Agreement:

1. Agreements to waive or forego rights or remedies
2. Confessions of Judgement.
3. Certain limitations of liability

Note: Landlord may be responsible for 3 times the monthly rent in damages for attempting to enforce prohibited provisions. 

The renting of spaces by manufactured homes in a manufactured home community is governed by the Oregon Residential Landlord and Tenant Act in Chapter 90 of the Oregon Revised Statutes. The Act requires that a written rental Agreement, Statement of Policy and Rules and Regulations be provided to each tenant renting a space in a manufactured housing community. This agreement, which includes or incorporates the community rules and regulations, becomes the contract that governs the relationship between the landlord and the tenant. Much of what you may or may not be able to do in your community will be addressed in the rental agreement.

Although many residents in your community may have rental agreements that are 5 or 10 years old, residents moving in to your community must be given a current rental agreement that conforms with the most recent amendments of Residential Landlord and Tenant Act and Federal Fair Housing Act. MHCO form '5A', "Manufactured Dwelling Space Rental Agreement/Dispute Resolution Addendum" (for month to month tenancies) and MHCO form '5B', "Manufactured Dwelling Space Lease Agreement/Dispute Resolution Addendum" are available through MHCO or you may have a rental agreement drafted by your attorney.

The Oregon Legislature occasionally adopts revisions to the Landlord and Tenant Act. Landlords and managers should make sure that they are utilizing the most current Rental Agreement. Rental Agreements generally may not be changed after execution, with the exception of mutual agreement of the parties; rent increases; and statutory changes (requirements of revised laws will apply even though not stated in the pre-existing agreement). ORS 90.510(4).

The MHCO Rental Agreement is designed to meet the current requirements of Oregon State Law. The Rental Agreement, which is intended for use in all classifications of parks, can be changed or altered to suit individual situations. In either event, you should consult with your attorney in order to insure that the agreement you choose meets all the legal requirements. It is important to remember that the tenant cannot be required to waive any rights that are granted to the tenant/resident by Oregon State Law.

The Rental Agreement should be completed and signed by both the landlord and the tenant/resident PRIOR to the home being moved into the community or PRIOR to the tenant/resident occupying a home already sited in the community. 

Upon reaching the ending date, fixed term tenancies will automatically renew to a month-to-month tenancy upon the same terms and conditions (except duration and rent).

In order to renew or extend a fixed term tenancy, (and avoid rolling into a month-to-month tenancy), the landlord must submit the proposed new lease agreement to the tenant at least sixty (60 days prior to the end of the lease term. The landlord is to include with the proposed lease agreement a written statement summarizing the new or revised term, conditions or rules and regulation.

If the landlord fails to submit a proposed new lease agreement the tenancy renews as a month-to-month tenancy.

The new or revised terms, conditions, rules and regulations must:

1. Fairly implement an existing statute or ordinance adopted after the creation of the existing agreement.
2. Be the same as those offered to new or prospective tenants.
3. Be consistent with the rights and remedies provided to tenants under ORS Chapter 90.
4. Not relate to age, size, style, construction material or years of construction contrary to ORS 90.632(2)Not require an alteration of the manufactured dwelling or accessory, building or structure.

The tenant must accept or reject the proposed new rental agreement at least thirty (30) days prior to the end of the lease term.

If the tenant fails to accept or unreasonably rejects the proposed new lease agreement, the fixed term tenancy terminates on the last day of the lease term without further notice.

If the tenancy terminates for failure to renew by the tenant, and the tenant surrenders and delivers possession of the premises to the landlord, the tenant is entitled to substantially the same rights and responsibilities as a lien holder under ORS 90.675(18) (the abandonment statute) except that the term of the storage agreement may not exceed six (6) months. (Note: this is not technically an "abandonment" the lien holder's rights are delayed until the end of the tenant's storage agreement.)

Fixed termed tenancies entered into before the effective date of this 2001 Act are not made invalid because their duration is less than two years. However, upon renewal or extension in accordance with the Act, the lease agreement must comply with minimum two (2) year requirement. 

1. A landlord may charge a screening fee solely to cover the costs of obtaining information on the applicant.  The landlord must provide the applicant with a receipt for any such screening fee.
2. A landlord may not charge non-refundable fees to secure a signing of a rental agreement.
3. A landlord may charge a deposit to an applicant for the purpose of securing the execution of a rental agreement after the applicant's application has been approved.   If the rental agreement is executed, the landlord shall either apply the deposit toward the moneys due the landlord under the rental agreement or refund it immediately to the tenant/resident.
4. If the Rental Agreement is not executed due to a failure by the applicant to comply with the agreement to execute, the landlord may retain the deposit.
5. If the Rental Agreement is not executed due to a failure by the resident to comply with the agreement to execute, then the landlord shall return the deposit to the applicant within four days.

 A landlord may charge a fee more than once, at the beginning of or during the tenancy, for:

1. A late rent payment
2. A dishonored check
3. Removal or tampering with a properly functioning smoke alarm or smoke detector
4. Any other noncompliance by the tenant with a written rental agreement that provides for a fee for that noncompliance, provided that the fee is not excessive.

Once you have determined that an individual is qualified to live in the community and all the proper documentation has been explained and signed, you should consider a meeting with the new resident. Use the Park Rules & Regulations as a briefing tool. The conversation should not be a "laying down of the law", but rather an open discussion of what is expected of both the new resident and community management. New residents may not know their responsibilities (despite signing numerous documents outlining their rights/responsibilities), thus it is your responsibility to clarify and remind them of their responsibilities. Be sure your new resident understands such things as:

1. Rent is due on the first of each month:
   1. If rent is paid after the 5th day, the residents will be faced with a late fee.
   2. If not paid by the 8th day, the resident will receive a 72-hour notice.
   3. Residents must give 30 days written notice to vacate space or they intend to sell their manufactured home.
2. Help your new resident be a good neighbor. Be sure that he/she is informed about:
   1. Quiet hours
   2. Pet Control
   3. Laundry room/Recreation room hours
   4. Swimming pool hours
   5. Review Rules and Regulation and remind the new resident that they are strictly enforced.