Minnesota’s New Manufactured Home Park Rent Control Bill Shakes Up Industry Landscape

Last Updated on April 7, 2025 by Ian Golightly

Minnesota’s manufactured home park rent control bill is set to redefine the landscape for both residents and investors. The legislation, introduced by DFL lawmakers, comes in response to mounting concerns over steep rent hikes, hidden fees, and lack of transparency from mobile home park owners—particularly those owned by private equity firms.

With over 80,000 Minnesotans living in manufactured home parks, this bill carries significant weight. It introduces rent increase caps, bans charges for utility repairs, and mandates disclosure before a park is sold. But what does this mean for residents? And how will it impact the private equity giants with mobile home communities in their portfolios? Let’s break it down.

 

Understanding the Rent Control Provisions in Manufactured Home Parks

At the heart of this new law is the cap on rent increases. Park owners can no longer hike rent arbitrarily. The legislation restricts annual rent increases to just 3% unless the owner can justify the need for a higher adjustment.

This rent cap directly addresses one of the most common complaints from manufactured home park residents: unpredictable and unaffordable rent spikes. For residents who own their homes but rent the land beneath them, this regulation provides financial predictability.

From a market perspective, manufactured home park rent control reduces volatility and increases tenant retention. However, for investors and park owners, it introduces a new layer of regulation that could tighten profit margins and alter acquisition strategies.

 

The Fee Transparency Mandate Aims to Protect Tenants

Beyond rent control, the bill enforces transparency in how fees are communicated. Park owners must now provide residents with an itemized list of all current fees and charges. They also must keep a communication log between the resident and management, plus provide a valid customer service number—especially for residents dealing with online portals.

This requirement ensures that manufactured home residents no longer face surprise costs. Hidden fees like landscaping charges or administrative expenses have become increasingly common under private equity ownership. With this new mandate, tenants can hold park owners accountable, creating a more balanced tenant-landlord relationship.

 

No More Utility Repair Costs for Residents

A major win for residents is the provision that bans park owners from passing utility repair costs onto tenants. In the past, residents were often forced to pay for repairs to aging water or sewer infrastructure, even though they had no control over maintenance schedules or vendors.

This part of the bill shifts the financial burden squarely onto park owners, forcing them to plan capital expenditures more responsibly. It also motivates timely infrastructure upgrades rather than deferred maintenance strategies commonly seen in investment-focused management.

This is another example of how manufactured home park rent control includes more than just rent caps—it redefines tenant rights.

 

Right of First Refusal Changes the Game for Resident Ownership

The bill also grants residents the “right of first refusal” when a park is up for sale. This provision gives residents the first opportunity to collectively purchase the land they live on.

Resident-owned communities (ROCs) have proven to improve stability and community morale. With legal priority to purchase, residents now have a better chance to keep their homes affordable long-term and reduce displacement risks.

For private equity firms, this clause adds complexity to exit strategies. Selling a park now involves notifying tenants and allowing time for resident negotiations, which can delay or block transactions.

 

How This Impacts Private Equity-Owned Mobile Home Communities

Private equity firms have increasingly targeted manufactured home parks as high-yield assets. The low operating costs and recurring rent revenue make them attractive. However, this new bill directly challenges that model.

Manufactured home park rent control shrinks operating margins by limiting rent increases and eliminating hidden fees and resident-borne costs. It also creates new friction in acquisition and divestiture processes due to the right of first refusal.

Firms may reconsider Minnesota as a favorable investment climate. Some may even divest existing properties rather than adapt to new regulations. This could open opportunities for nonprofit housing organizations or resident cooperatives to step in.

Still, not all firms will walk away. The long-term cash flow of these communities can remain attractive, especially if investors adjust their strategy to focus on efficiency and resident satisfaction.

 

Resident Advocacy and Legislative Support

This bill didn’t come out of thin air. Residents across Minnesota reported rent increases of up to $200 a month, along with unexpected fees and a lack of communication from management. These stories galvanized legislative action.

Rep. Matt Norris (DFL-Blaine) and other lawmakers led the charge, citing the growing trend of private equity buyouts and the destabilizing effects on manufactured home communities. Resident testimonies were central in building support for the legislation.

The law is a result of grassroots organizing combined with political advocacy. It represents a shift toward recognizing the unique vulnerabilities of manufactured home residents and the need for legal protections tailored to their situations.

 

Looking Forward: What Should Park Owners Do Now If The Bill Is Passed?

Park owners in Minnesota must act quickly to comply. Here are key steps:

1. Audit rent increase history and adjust future rent hikes to align with the 3% cap.
2. Create a transparent fee breakdown and communicate all charges clearly.
3. Set up reliable resident support channels, including phone and online systems.
4. Budget for utility repairs, as passing costs to tenants is no longer an option.
5. Prepare exit strategies that account for the right of first refusal and longer transaction timelines.

Staying proactive will reduce compliance risks and help maintain a positive relationship with residents in this new regulatory era.

 

Conclusion: A Tectonic Shift in Manufactured Housing Policy

The introduction of manufactured home park rent control in Minnesota marks a significant shift in housing policy. By capping rent increases, mandating fee transparency, banning unfair utility charges, and empowering residents with purchasing rights, the state has taken bold steps to stabilize affordable housing.

While this may challenge traditional investment models, it also creates an opportunity for responsible park ownership that aligns with long-term housing security. For residents, it’s a step toward dignity, predictability, and community control.

Whether you’re a resident, operator, or investor, understanding and adapting to these changes is no longer optional—it’s essential.