Focused on California - January 2013

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In this issue:

-Changes to Mobilehome Residency Law effective Jan. 1, 2013

-Civil Code Amendments Pertaining To Non Homeowners In Mobilehome Parks

-Changes To The Public Utilities Code

-Changes To The Business And Professions Code

Excerpt from Changes to Mobilehome Residency Law effective Jan. 1, 2013:

Many California Mobilehome Park owners provide their onsite managers with housing as part of the compensation package. Providing employee housing has certain benefits such as a recruitment tool for hiring and retaining the best managers. However, before a park owner agrees to provide his or her manager with free housing, the owner should follow some “best practices” guidelines.

First, put the agreement in writing. It is never a good practice to provide employee housing and not document the terms of the agreement. The biggest benefit to the owner from a written agreement is that it provides the owner with control over defining the terms of the tenancy. Typically, the park owner seeks to have the employment relationship and the tenancy relationship co-exist. When the employment relationship ends, the owner generally seeks to end the tenancy and have the former employee vacate the premises. If the agreement is not in writing, the potential for future litigation is high because the employee may want to remain in the dwelling. The circumstances may be such that the tenant has strong grounds for arguing the landlord-tenant relationship exists independently of the employment relationship. For example, the tenant may argue the landlord’s transfer of possession and control over the dwelling to the tenant shows the landlord intended to create a tenancy independent of any services rendered by the employee. To avoid this, the park owner should make the terms of the relationship clear by putting the terms in writing. It is a good idea to consult with an attorney experienced in writing such contracts.

Please see full newsletter below for more information.

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Topics:  Employee Housing, Landlords, Leases, Mobile Homes, Tenants

Published In: General Business Updates, Energy & Utilities Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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