Manufactured Homeowners Who Rent Lots Lack Security of Basic Tenants Rights (report)

In Brief

Unlike apartment dwellers, manufactured home occupants who rent the space upon which their unit is placed currently have no legal rights if a park owner decides to terminate their stay. These families have no right to a written lease under law, and are typically on month to month tenancies. This situation leaves them without basic landlord-tenant protections.
Although manufactured homes are often referred to as mobile homes, they are far from mobile. Few homes are ever moved from their original installation. The cost and difficulty of moving these homes place such tenants in a uniquely disadvantaged position when dealing with landlords who can give them 30 days notice at any time.

This poor bargaining position leaves residents at risk of landlords' demands of more money for rent, utilities, or other services. Unexpected expenses are especially difficult for those on fixed income, such as retirees. National studies have shown that those of retirement age are overrepresented in manufactured housing. Under constant threat of eviction, tenants will lose almost any conflict with landlords.

Despite the unique problems facing these manufactured homeowner-tenants, under current Texas law they have neither the rights nor the protections afforded apartment dwellers or conventional homeowners. Such protection is needed if manufactured housing is ever to become a safe, stable environment for Texas families.

Traditionally marketed to retirees and very young families, today in Texas manufactured homes have captured a broad market among all kinds of people seeking affordable housing. The December 2000 Current Population Survey reports 1.2 million Texans live in mobile homes.

Manufactured home occupants in Texas tend to be younger and have incomes several thousand dollars higher than manufactured homeowners nationally, reflecting the wider acceptance of such housing here. The median age of Texas occupants is 29, and the median household income is roughly $30,000. There are also noticeably more children in manufactured housing in Texas: 37% of occupants are under the age of 18, vs. 29% nationally.(2)

Most manufactured home residents live in and near urban areas. 68% Texas of manufactured houses are found in urban areas, and 11.5% of all mobile homes in Texas are in the Houston PMSA (Primary Metropolitan Statistical Area). Another 9.9% are in the Dallas PMSA. Rural counties generally have a higher percentage of the population living in manufactured housing, but many of the rural counties with a very high ratio of manufactured homes are sparsely populated (see tables below).(3)

Manufactured homes are an attractive alternative for many Texas families because down-payments and monthly payments are generally lower than those for site built homes. Often, part of the up-front cost savings comes from placing the home on rented lots.
In Tarrant County, for example, 65 percent of manufactured home owners do not own the land on which the unit is placed. Percentages may be slightly lower, but still significant, in rural counties.(4) National statistics about manufactured home loans indicate that less then 10% of loans include both home and land as collateral.(5)

In 1999, there were 256,323 manufactured homes placed on rented lots in the state of Texas.(6) The tenants, about three quarters of a million people, rely upon their lots for space to live.

Unlike regular renters, however, these tenants have no protection under Texas law. And also unlike regular renters, these tenants stand to lose thousands of dollars in moving costs if they have to leave their lot. The industry estimates moving costs for manufactured homes to be $1500-$3500.7 Moving a home can cause structural damage as well. A manufactured home retail salesperson told Consumers Union staff that after moving, homes often look like they have been through an earthquake, and require significant work to repair.

Even if owners have the money, these tenants may not be able to find a place for their homes because many parks are full or won't take used homes. Once a park fills, turnover of units is very low: usually owners sell the unit in place in a park. Sun Communities, a park development company active in Texas, estimates only about 3% of its occupied lots open up a year.(8) Newer parks, which have open spaces yet to be filled, often don't accept used homes.

Notes:
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1 Dickson, Gordon, "Mobile Home Tenants will be forced to move; Grapevine approves single-family houses for park," Fort Worth Star-Telegram, 2/21/01. Unless specifically citing to other sources like news clips, all personal examples were provided through interviews with Legal Aid of Central Texas (LACT).

2 December 2000 Current Population Survey, Bureau of Labor Statistics.

3 Number of Titles from Texas Department of Housing and Community Affairs (TDHCA)
titles by county report, August 2000. County Populations from "Population Estimates Program January 1, 2000 Estimates of the Total Population of Counties", Texas State Data Center. County type from Comptroller of Public Accounts: Reference Table, County Definitions.

4 Tarrant Appraisal District, 2000 State Use Code Statistics, September 2000. In rural counties, land ownership is more common. In Angelina County, for example, nearly two thirds of manufactured home owners own their lot.

5 Manufactured Home Financing 1998, Manufactured Housing Institute

6 State Summary of School Reports of Property Values, Comptroller of Public Accounts, 1999. Texas A&M University Real Estate Center, 2001 Real Estate Review and Outlook, January 2001, p.7. Texas A&M estimates that 2.8 people live in a manufactured home in Texas. Our estimate uses the number of rental homes reported in property tax roles, minus the estimated number of vacant homes, multiplied by 2.8 persons per non-vacant home.

7 Testimony by Steve Rogers of the TMHA before Texas House of Representatives, Urban Affairs Committee on 8/30/00.

8 December 1999 10-K, Sun Communities, Inc. Pg. 5.