What is an RV Space Rental Agreement?
An RV space rental agreement is a contract between an owner of any size or length parking space, lot or marina site and the renter for that parking space , lot or marina site. It lays out the terms of the rental and is a record for both parties of the agreements. It is also a way to track payment from the renter to the owner. An agreement should also contain the policies of that owner so renters know what to expect and what will be expected from them. It’s also important. It protects the park owner by ensuring the renter knows the rules and is subject to their terms of the use of the space. It also protects the owner by a lien right on the RV itself for unpaid rent. It protects the renter by ensuring they won’t be arbitrarily kicked out of the space without notice. It’s really a win-win situation for everyone.
Major Elements of an RV Space Rental Agreement
Rental Terms: The rental terms should detail the length of the rental period, the rental fee —including when and how it should be paid—and any penalties for late payment. The agreement should also specify whether the lease could be renewed and under what conditions.
Fees: Any fees associated with RV space rental such as utility costs, maintenance fees, or entrance fees should be clearly outlined.
Rules and Regulations: These may include the guidelines on the use of common areas, noise control, open fire or what happens if the lease term ends while the RV is still on site. The RV park may also have requirements for the aesthetic aspects of the RV such as length of the grass or other landscaping, trash or litter control and minor restriction on the exterior appearance of the RV.
Responsibilities and Liabilities: The agreement should highlight the responsibilities of both parties so that there are no disputes over what is expected.
Termination and Breach: A simple explanation of the process of termination of the agreement and breach thereof should be included.
Common Provisions of RV Space Rental Agreements
Like any agreement, a rental contract for space in a recreational vehicle park should cover a number of essential terms. For the purposes of this blog post, we will consider common clauses found in these types of contracts, including: security deposits; maintenance obligations, and; cancellation/refund policies.
1. Security Deposits
Most RV park space rental agreements contain a provision that creates an obligation for the lessee to pay a security deposit at the time of signing the agreement. A typical clause might read as follows:
"A non-refundable security deposit in the amount of $100.00 is due at the time this agreement is signed."
This particular clause may be acceptable under New Jersey law. However, in some situations, the Department of Community Affairs (DCA) may view a security deposit as a rent payment that is or should be stored in interest-bearing account. In these circumstances, the DCA may consider a one-time payment to be an ongoing monthly payment that should be placed in an account (which bears interest).
2. Maintenance Obligations
Most RV park space rental agreements also contain a provision that states who is responsible for maintaining certain aspects of the "space." A typical clause might read as follows:
"It is the responsibility of lessee to maintain his/her site in good condition. Each site must be properly graded, with trash, weeds, grass and other plant growth kept trimmed at all times."
This type of clause is for the most part uncontroversial in nature.
3. Cancellation/Refund Policies
Cancelling a contract that falls outside of the scope of the Consumer Fraud Act can sometimes be a tricky situation. This is another area addressed in the RV park space rental agreement. A typical clause might read as follows:
"Thirty (30) days notice of cancellation must be given to lessee. Failure to give proper notice will result in loss of rent and deposits for 30 days. There are no refunds for early departures."
In some situations, this type of clause may seem unfair to the lay person. However, it may be the only way for the RV park owner to maintain the level of occupancy necessary for a "profitable" return on the investment. Therefore, an RV park owner cannot be faulted for trying to limit the amount of notice necessary to recover funds for an early departure.
Legal Issues Concerning RV Space Rental Agreements
Both parties should be aware of any specific local laws or regulations that may affect the terms of rental agreements and relationships between them. For example, many localities have laws or ordinances regarding the minimum size of RV spaces or the ratio of foot to tent campers to RV campers for recreational camping areas.
The local health department or state environmental control agency may have requirements regarding the provision of potable water, sanitation facilities, maintenance, electrical service, solid waste collection and separators for gray and black water at recreational vehicle parks.
Recreational vehicle parks must ordinarily comply with requirements regarding the identification of the park’s address and the number and size of the individual pads in the park. States typically require that RVers be provided with regulatory pamphlets on proper waste disposal and sanitation requirements . Parents should be aware of local requirements regarding safety equipment such as fences around ponds and swimming pools.
Local building and zoning ordinances and state highway regulations can also affect the construction and expansion of recreational vehicle parks and the location of transportation facilities and signage (for example, billboards). Mobile homes that are placed on a long-term basis are generally subject to local zoning regulations, while RVs and travel trailers are typically excluded from those regulations unless they are used as residences. Local real estate, motor vehicle or business taxes may apply to both the recreational vehicle park owners and the RV owners.
RVs or mobile homes that are rented for short terms to transient guests may be exempt from property taxes. And, in most locales, RV sites that can be rented for short periods of time qualify as personal property, rather than real property.
Guidance for Landlords: Creating an Equitable RV Space Rental Agreement
When preparing to enter into an RV space rental agreement, landlords should consider the following:
Stipulate the number of occupants. When an RV park has limits on the number of persons that can live in a space, it is best to have that in writing in the rental agreement. To be non-discriminatory, landlords should make sure that the number of persons is the same for everyone in that space, regardless of how many bedrooms or sleeping areas are in the RV. Additionally, the agreement should stipulate whether guests over a certain duration of time are allowed without paying an extra fee.
Make payment terms clear. It is always recommended to make monthly rental payments due on a uniform day (ie – the first of each month). The rental agreement should clearly state whether late fees apply if the rent is paid after that date, the amount of the late fee, and whether the late fee will apply to partial payments. Many RV parks have the terms of these agreements posted in common areas, but having the terms in writing provides clear guidance on the payment obligations of the renter.
Ensure compliance with local ordinances. While most RV landlords are well aware of the issues with zoning, there are other local ordinances governing the licensing and use of RV spaces. For example, many cities and counties have ordinances prohibiting the use of RVs as a permanent residence. Such ordinances need to be enforced, but it can be difficult in an RV park situation. Many cities issue temporary permits for RVs to remain in a place where they are not allowed. Most of the time, though, these permits are good for only a short period of time. The terms of the rental agreement should make it clear that any such ordinances will be strictly enforced so that the landlord can rely on the ordinance provision as a basis for eviction.
Clearly designate maintenance responsibilities. The rental agreement should clearly define the responsibilities for maintenance and repair of the unit itself, as well as the archetypal spaces commonly associated with RV spaces (e.g., decks, appliances, outdoor equipment and landscaping). The rental agreement should also define where the responsibility of the landlord for maintenance of common areas ends, and the responsibility of the renter begins.
District courts across California have held that the following provisions are generally valid and enforceable in RV space rental agreements. However, the courts have limited the application of these provisions in limited circumstances. If there is any doubt, contact an attorney to draft or review your agreement.
Tips for Renters: An RV Space Rental Agreement’s Terms and Conditions
When reviewing a rental agreement for an RV space, there are several key elements that tenants should watch for. Here are some terms and conditions to look for and how to negotiate terms in a rental agreement.
Modification of the Agreement – Unless otherwise stated in the written rental agreement, any verbal agreement between a tenant, the mobile home owner, and the park operator controlling the rental space is unenforceable.
Rent and Rent Increases – The rental agreement will state the amount of rent due and the due dates for when the rent should be paid. Any rent increase must follow state law and the rental agreement. Lack of rent payment is a violation of the rental agreement and can result in termination of the rental agreement. A rental increase of any amount needs to be governed by state law—California law has some strict limits on how often and how much the rent can be increased. The tenant should check with his or her local laws and regulations, in addition to consulting an attorney, if needed, to ensure that the increase is enforceable.
Rent Discounts and Incentives – Discounts and incentives to pay additional fees or assessments should be clearly spelled out in the rental agreement. While discounts and incentives can be valid, the terms should be crystal clear to the tenant.
Terms of Rent Payment – As mentioned above, any late fees and/or deposit required should be specifically addressed in the rental agreement. The agreement will set the time frame in which payments are due, usually in line with state law . If the park operator’s office closes at a certain time, the agreement may contain language that a rent payment turned in after hours is considered to be turned in the following business day.
Renter’s Rights – The rental agreement should address any other rights of the tenant—including issues such as non-gender discriminatory rules, recourse against evictions, etc., depending upon state law. Tenants must be aware of federal and state laws that give tenants rights during and after their lease is terminated. It’s always important to check with local laws to ensure that these clauses, if any, are not overridden by a particular area’s laws.
Care and Maintenance of the Space – The rental agreement should address the care and maintenance of the trailer space during a tenant’s residency. This includes landscaping, utilities, and repairs. Most areas have strict landlord/tenant laws and rental agreements. They govern basic issues, such as what happens in the event of a fire, upgrading the space, and treatment of renters’ belongings. Tenants should make sure they are consulted when these issues arise.
Negotiating Lease Terms – Many people don’t realize that negotiating the terms in a lease are possible. While some terms are set by state law, many fees and amount of rental increases, and other provisions may be completely negotiable. Tenants, and even park operators, should consult an attorney when deciding whether to negotiate any terms of the lease.
