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How Sun Communities Can Minimize Lawsuits

 

Sun Communities is the 2nd leading provider of manufactured housing communities, RV resorts, and marinas across the United States.  With a large portfolio of properties and thousands of residents and guests, I’m sure it’s inevitable that legal issues may arise from time to time.  In fact, while speaking with a corporate VP, he stated quite emphatically that Sun Communities gets sued a lot.   However, I think there are several strategies that Sun Communities can implement to minimize the risk of lawsuits and legal disputes just from the information I’m aware of.

 

One of the most important ways to minimize lawsuits is to ensure that all properties are well-maintained and in compliance with local laws and regulations. This includes regular inspections of the properties, prompt repairs of any issues that arise, and clear communication with residents about their responsibilities in maintaining their homes and lots. By proactively addressing maintenance issues and ensuring that properties are kept in good condition, Sun Communities can reduce the risk of accidents and injuries that could lead to lawsuits.  So far this hasn’t been the case with Lafayette Place Mobile Home Park.  Pot holes are left for an entire year causing damage to vehicles.  Railings and stairs are left unrepaired which has to be a sure violation of safety protocol.  Screen doors are left to slam against railings on windy days, causing shattered glass and bent frames.  Skirting is not repaired which allows critters to live and die under their homes.

 

And what makes it worse, Sun has a staunch rule that residents are responsible for all minor repairs.  So when a Neighbor asks the Park Management for help, it’s ingrained in  them to say, “it’s your responsibility”.  That Neighbor may not have anyone in their lives to help them which doesn’t bother Park Management at all.  The less work they have to do the better.  And so attitudes like this can cause a bad taste in a Neighbors mouth regarding Sun Communities.

 

Another key strategy for minimizing lawsuits is to have clear and comprehensive lease agreements and community rules in place. These documents should clearly outline the rights and responsibilities of both residents and the Community Management, as well as the procedures for resolving disputes. By setting clear expectations from the beginning and ensuring that all residents are aware of the rules and regulations, Sun Communities can prevent misunderstandings and conflicts that could escalate into legal disputes.  Here’s the issue.  Everyone knows that reading a lease in an office will not be remembered once they leave.  Because of this, Sun Communities can now put the responsibility of any violations directly on the tenant with no follow-up by the staff.  Add to this the lease font size is so small it makes it difficult to read, especially for those of us who are older.  Now, if a policy is broken, Management won’t just call the resident, explain the situation and offer a solution.  They’ll likely send you a letter, maybe, and institute a fine.

 

Here’s a good example.  One of my Neighbors unfortunately had a car accident, and his vehicle was towed back to Lafayette Place and placed in another Neighbors spot.  The Neighbor who had the spot called Nicolette to report the violation.  Instead of Nicolette calling the Neighbor and letting him know that the vehicle needs to be moved in a certain amount of time, she immediately called the tow company and had it removed without informing him.  He had important material in the vehicle he needed to retrieve, but because of this policy, he couldn’t do it, and I’m positive it made the Neighbor very angry.  This anger didn’t have to happen if Management just cared a little about our Neighbors situation.  But the bottom-line is caring is not part of Sun Communities philosophy.  If Nicolette and Marsha show any compassion for a Neighbor, and we’ve seen first hand how our Neighbors are treated, it goes against the rule, “if we help one, then we have to help them all.”

 

In addition to clear lease agreements and rules, Sun Communities should also have a strong and responsive customer service Management team in place to address any issues or concerns that residents may have. By providing a quick and effective response to resident complaints and requests, Sun Communities can prevent small problems from turning into larger legal disputes. It is also important for the customer service team to be well-trained in conflict resolution and communication skills, so that they can effectively de-escalate tense situations and find mutually acceptable solutions to problems.

 

This happens by not placing professional managers in place who have a customer-centric philosophy.  Since Lafayette Place has become a training ground for their Managers, I really feel Sun Communities does not want their Managers to take a caring view of any issues.  Because once they start caring, they move away from the standard process of Sun’s strict letter to the law.  And I have to believe that this tenseness between Management and Community is a breading ground for the destruction of homes, evictions and lawsuits.  And so, the loss of income from these three wind up being a line-item in their Profit and Loss Statement.

 

And don’t believe me, just read the negative reviews on the internet.  Sun can brag about how their customer service surveys are so great, but the fact is in just about all of Sun Communities properties that I’ve read, poor Management is the single biggest issue their residents have.  And it’s no different here.

 

Training and education are also key components of minimizing lawsuits for Sun Communities. All employees should receive regular training on fair housing laws, discrimination prevention, and conflict resolution techniques.  By ensuring that all staff members are knowledgeable about their legal obligations and how to handle difficult situations, Sun Communities can reduce the risk of legal liability stemming from employee misconduct or ignorance of the law.  I truly don’t know what type of Management training they receive, but as President of a Sales and Management training company for 30 years, I just don’t see the customer service training they provide to our Managers.

 

Sun Communities should also have a robust risk management program in place to identify and address potential legal risks before they escalate into lawsuits.  By proactively identifying and mitigating potential risks, Sun Communities can avoid costly legal battles and protect their reputation in the industry, that is, if reputation really is a concern to them.  I’m positive that Sun Communities will not be hurt by negative publicity, since most people will not do their research before entering a Sun Communities property.

 

But I get the feeling that their legal battles with residents are more reactive then proactive.  From talking with Neighbors who have had issues with Corporate and Management, I don’t think Sun tries to get ahead of an issue.  And when an issue does arise, they’ll spend their time defending their policy and making the Neighbor feel like it’s their fault, instead of working with a Neighbor to solve the problem.

 

This is likely a given, but Sun Communities should also have a strong legal team in place to handle any lawsuits that do arise, whom I have personally had the experience of dealing with. This team should be experienced in real estate law, landlord-tenant disputes, and other relevant areas of law, and should be prepared to defend the company's interests in court if necessary. By having a knowledgeable and proactive legal team on retainer, Sun Communities can ensure that any legal disputes are resolved quickly and effectively, minimizing the impact on the company's finances and reputation, but not protecting the Neighbors dignity.  But even with a strong legal team, for every Neighbor I’ve spoken to who have had issues with Corporate and Management helping them resolve issues, Corporate does not make it easy for them and are not very flexible.  They have the power to do whatever they want and are not afraid to show it.  Like they did with my Cease and Desist order, they use fear to resolve issues which many residents just don’t want to go through.

 

In conclusion, there are several strategies that Sun Communities can implement to minimize the risk of lawsuits and legal disputes. By maintaining properties in good condition, having clear lease agreements and community rules, providing excellent customer service, training employees on legal compliance, implementing a risk management program, and having a strong legal team in place, I feel that Sun Communities could protect themselves from costly legal battles and maintain a positive relationship with residents and guests. By taking these proactive steps, Sun Communities can hold on to it’s #2 place in the industry, and maybe become an example for all mobile home park owners nationwide.

 

© Mike Whitty | Mr. Mike's Neighborhood