Can Mobile Home Parks Charge Pass-Through Utilities in Michigan?

If you rent a mobile or manufactured home site in Michigan, you might notice utility charges—like water, sewer, or electricity—on your monthly bill or invoice from the park. But are parks allowed to charge "pass-through" utilities, and what are your rights if you think you’re being overcharged or unfairly billed?

Understanding Pass-Through Utility Charges in Michigan

"Pass-through" utility charges are amounts billed by a mobile home park to cover the utilities it pays for your lot or unit, then passes that cost to you, the renter. In Michigan, there are specific regulations that limit how and when parks can charge these fees.

How Michigan Law Regulates Utility Charges

The Michigan Mobile Home Commission Act (Act 96 of 1987) governs mobile home parks and their relationship with residents. Under Section 125.2328, a park operator can bill residents for utilities if the actual charges are based on usage or a fair method approved in your rental agreement.

• The park may only charge you what it actually pays to the utility provider, divided fairly among residents.
• The rental agreement must explain the pass-through charge calculation method.
• No extra profit or hidden fees can be added—just the direct utility costs.

If you have an individual utility meter, you should only be charged for your usage. If meters are shared, parks must use a reasonable method to divide the cost.

Your Rights When Being Charged for Utilities

It's important you know exactly how your bill is calculated. You can request in writing that the park operator show you utility bills or calculation details. By law, park owners must provide this information if you ask^[1].

• You have a right to a clear breakdown of utility costs.
• If your park bills you more than their actual utility cost, you can dispute the charge.
• You cannot be charged extra for "administration" or "processing" unless it is stated and allowed by the law.

How to Dispute a Questionable Utility Charge

If you believe you are being overcharged or unfairly billed, here are steps you can take:

• Ask the park in writing for a statement of utility costs and calculations.
• If you do not receive a clear explanation, you may file a complaint with the Michigan Department of Licensing and Regulatory Affairs (LARA), Mobile Home Division.
• If the issue is not resolved, residents can also take disputes to district court.

Relevant Forms and How to Use Them

• Mobile Home Park Complaint Form (LARA/BCC-105)
  When to use: If you wish to officially report excessive or unclear utility billings, or any violation of park regulations.
  Example: If your park refuses to provide utility charge details, or you think they're overcharging beyond what they pay the utility company.
  Download Mobile Home Park Complaint Form

Submit completed forms to the Michigan Department of Licensing and Regulatory Affairs - Mobile Home Park Program.

Who Handles Disputes and Complaints?

The state body that oversees mobile home park issues is the Michigan Mobile Home Commission, and complaints are handled by the Bureau of Construction Codes within LARA.

Summary of the Rules for Renters

Michigan law protects renters from unfair pass-through utility billing in mobile home parks. If your park isn't following the law, official complaint channels exist to help you out. Always read your rental agreement and ask questions if utility charges seem unclear or excessive.

Frequently Asked Questions

1. Can a Michigan mobile home park charge residents more than the actual cost of utilities?
   No, parks are only allowed to bill residents for their actual utility expenses, fairly divided. Additional surcharges or profit are prohibited under Michigan law.
2. What if my rental agreement doesn’t mention pass-through utility charges?
   If a utility charge is not clearly stated in your rental agreement, the park cannot add new charges without your consent. Any change requires proper notice and an updated agreement.
3. How can I see proof of utility costs from my park?
   You have the right to request in writing a statement showing how charges are calculated. The park must make this information available for inspection or provide copies upon request.
4. Who do I contact if I believe I’ve been overcharged?
   Report concerns to the Michigan Department of Licensing and Regulatory Affairs (LARA) using the Mobile Home Park Complaint Form. If unresolved, consider small claims court for recovery.
5. Does Michigan law cap how much a park can charge for utilities?
   Yes, parks may only charge their actual paid cost for utilities. Any amount beyond that, except a lawful administrative fee described in your agreement, is not permitted.

Key Takeaways for Michigan Mobile Home Renters

• Pass-through utility charges must be based on actual costs paid by the park, not estimates or inflated amounts.
• Your rental agreement should clearly explain any utility billing practices and formulas.
• If you think you’re being overcharged, request a fee breakdown and take official action if necessary.

Always communicate in writing and save your records. Michigan law gives renters important rights regarding utility charges in mobile home parks.

Need Help? Resources for Renters

• Michigan Department of Licensing and Regulatory Affairs - Mobile Home Park Program (main oversight and complaint office)
• Michigan Legal Help – Mobile Home Park Residents (free guidance for renters)
• Mobile Home Park Complaint Form (LARA/BCC-105)

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1. The Michigan Mobile Home Commission Act, Section 125.2328.
2. Michigan Department of Licensing and Regulatory Affairs – Mobile Home Park Program.
3. LARA/BCC-105 – Mobile Home Park Complaint Form.

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