Mobile Home Community Ownership in Texas: Legal and Operational Essentials

Mobile home park ownership in Texas presents unique legal responsibilities and operational challenges.

To build a profitable and compliant business, community owners must focus on three essential components: legally sound resident site leases, professional property management partnerships, and efficient utility water billing systems.

This comprehensive guide breaks down each component with practical strategies and Texas-specific legal insights to help mobile home park owners protect their investments, stay compliant with state laws, and improve operations. Whether you're acquiring your first manufactured home community or managing an established property, understanding these core areas is vital for long-term success.

Resident Site Leases: The Cornerstone of Your Texas Mobile Home Park

The resident site lease is the legal foundation of your relationship with tenants who occupy manufactured home lots. A well-drafted mobile home lease agreement clearly outlines rights, responsibilities, rent obligations, utility terms, and community rules. In Texas, mobile home park leases must comply with Chapter 94 of the Texas Property Code, which sets forth mandatory provisions regarding lease duration, notice periods, and eviction processes.

Key Components of a Mobile Home Lease in Texas

Standard lease terms range from one to five years, offering stability to both landlords and residents. The lease must detail monthly rent, security deposits, late fees, rent increase timelines, and specific utility billing methods—such as submetering or RUBS (Ratio Utility Billing System). Include enforceable community rules covering noise limits, pet ownership, landscaping, guest policies, and overall upkeep. These rules must be delivered and acknowledged in writing to remain enforceable.

A compliant lease will protect your property value and serve as your best legal defense if conflicts arise. Proper lease documentation is essential to resolve disputes, initiate evictions, and defend against tenant complaints.

At Johnsen Law, we provide expert lease drafting services customized for Texas mobile home parks. Our attorneys review and tailor site leases to reduce risk and maximize enforceability, ensuring your documents meet current Texas regulations and legal standards.

Why Strong Mobile Home Leases Matter

A clear lease helps tenants understand rules and expectations, which minimizes misunderstandings and noncompliance. Well-structured lease agreements limit liability, support eviction procedures, and preserve the overall safety and order within the community. Strong leases also preserve investor confidence and improve property value. If you are operating in multiple Texas counties, leases must comply with local housing codes in addition to statewide laws.

Property Management Partnerships: Improving Efficiency and Legal Compliance

Many mobile home community owners in Texas choose to hire professional property management companies to handle day-to-day operations. This can be a smart decision—especially for larger parks or owners without experience in residential property management.

When selecting a management partner, make sure they have specific experience in mobile home park operations. Their services should include tenant screening, rent collection, rule enforcement, maintenance coordination, and 24/7 emergency response. Look for companies that use modern property management software to offer real-time updates and reporting, improving transparency and efficiency.

Key Contract Terms for Management Companies

Management agreements should define the scope of authority and include clear fee structures—either as a flat rate or a percentage of collected rent. Require regular performance reports and clarify which decisions the management company can make independently (e.g., repairs under a certain dollar amount). A well-negotiated agreement protects your business and ensures accountability.

Johnsen Law helps Texas mobile home park owners draft and review property management contracts to ensure legal compliance and protect your financial interests. We negotiate favorable terms and help you avoid common pitfalls such as vague service expectations or unregulated decision-making authority.

Utility Water Billing: Submetering vs. RUBS in Texas

Water utility management is one of the largest ongoing expenses for mobile home park owners. Texas law allows two primary billing options for recovering water costs from tenants: Submetering and RUBS (Ratio Utility Billing System). Each method has pros, cons, and legal requirements that must be followed to avoid penalties.

Submetering: The Accurate Billing Option

Submetering involves installing a separate water meter for each mobile home unit, allowing residents to be billed based on actual water usage. This method encourages conservation, allows for leak detection, and improves billing transparency. However, submetering has higher upfront costs due to meter installation and potential plumbing upgrades.

In Texas, submetering is regulated by the Public Utility Commission of Texas (PUC). Community owners must register and follow detailed rules regarding bill frequency, allowable charges, and resident notices. Johnsen Law assists mobile home park owners in registering with the PUC, choosing compliant billing vendors, and avoiding costly legal mistakes.

Get Started Today!

RUBS (Ratio Utility Billing System): Lower Cost but Less Precision

RUBS distributes water bills among tenants based on unit size and occupancy, rather than actual usage. This approach has lower startup costs and avoids pipe modifications, making it attractive for older communities. However, RUBS systems can cause disputes over fairness and lack the leak detection benefits of submetering.

Texas law requires RUBS calculations to be disclosed to tenants, and owners cannot profit from utility billing. All billing practices must be fair, transparent, and follow PUC guidelines.

Many mobile home communities switch from RUBS to submetering as they grow, aiming to reduce disputes and improve efficiency.

Implementation and Compliance Tips

Before installing meters or adopting RUBS, inspect your property for plumbing accessibility and consult with experienced water billing vendors. Not all third-party billing companies follow Texas law—work with professionals familiar with mobile home parks in Texas. Johnsen Law provides end-to-end legal support during water billing system transitions, including contract negotiation, resident notification, and compliance auditing.

Looking Ahead

Successfully owning and managing a mobile home park in Texas requires legal precision, reliable operational systems, and ongoing compliance with property laws. Properly drafted site leases, effective property management contracts, and compliant water billing systems will reduce legal risk and improve long-term profitability. Whether you’re purchasing your first park or expanding your portfolio, working with a qualified real estate attorney ensures you're protected every step of the way.

Contact Johnsen Law today for a free consultation about lease development, submetering compliance, or property management contract review. We offer tailored legal services for mobile home community owners across Texas.

If you found this guide useful, share it with other mobile home park owners or investors. Staying informed and legally compliant is the key to building a successful and sustainable community in Texas.

Get Started Today!

Subscribe to our Email Notifications list. By subscribing to our email list you will be sure to get a notification about our next article that is posted here on JohnsenLaw.com/blog

along with other special updates and one-time only offers.

Yes, Sign Me Up!