'They're gouging us': Residents unionize after 2nd big rent hike at Missoula trailer park

The residents of yet another large trailer park in Missoula have formed a tenants union after their new out-of-state owners imposed a second big rent hike.

"They're gouging us," said Katoonah Lodges resident Vicki Reynolds. "90% of the people who live here are on fixed incomes."

The Katoonah Lodges Mobile Home Park, located off Mullan Road a couple miles west of Reserve Street, was purchased by a company called Axia Realty Partners, based in Dallas, Texas, last year. The court has 103 mobile home lots, mostly double-wide trailers, and is for people age 55 and up.

The new owners informed residents that their lot rent will be going up by $95 per month starting in May. That's after a $100 increase they implemented last spring. So residents will be paying $745 a month to rent the land under their trailers, and some are also making mortgage payments on their homes.

The residents recently began working with the Missoula Tenants Union. More than 80 households, technically called a supermajority, then voted to form a tenants union.

It's the third time that a Missoula trailer park has unionized after rent hikes from a new out-of-state landlord. Travois Village and Harvey's, both purchased by Texas-based Oakwood Ventures, unionized in the last six months and helped pave the way for the action by Katoonah Lodges.

"Katoonah neighbors are supported by the city-wide tenants union and are in solidarity with the Travois and Harvey's tenant unions who are actively bargaining with their owners this week," said Hannah Kosel, a Missoula Tenants Union organizer. "This network of increased organizing highlights the affordable housing that is at stake of being lost in Missoula and the neighbors who are willing to fight for its protection."

At Katoonah Lodges, the residents are deeply concerned about this second rent hike.

Reynolds, who has lived at Katoonah for about seven years, said it's a very nice park and a great place to be, so most people don't want to move.

"People buy these homes thinking this is the last place they're going to live," she explained.

She said that residents maintain their own lawns and there's no large community room or pool for the landlord to maintain.

The new ownership group has explained the rent hikes to residents in several letters.

In explaining their first rent hike, the ownership group said they invested $600,000 in utility upgrades and exterior enhancements.

"We want to address some financial realities that come with owning and managing a community of this size and scope and again ensuring its longevity as a mobile home park far into the future," the letter stated. "The previous ownership group placed a significant valuation on the property, and while we are committed to maintaining and improving (Katoonah), the previous sale price of $11 million has placed considerable pressure on our ability to fund critical infrastructure upgrades to ensure the long-term health and safety of the community."

In their letter announcing the second rent hike of $95 per month, which goes into effect on May 1, the owners said the septic system needed repairs.

"This adjustment is necessary to offset the significant costs associated with the property improvements," the letter stated. "As we continue to make improvements to the property and address rising maintenance costs, this increase will help us ensure that the community remains a beautiful and well-maintained place to live."

Natalie Zapf is trying to sell one of the mobile homes after her mother passed away. She said the rent hike is making it harder for her to sell the home, because the listing notes that there is a $1,000 per month Homeowners Association Fee. She's had to significantly drop the price on the home because the fee is scaring away potential buyers.

Reynolds said the "HOA fee" in the listings is just the lot rent. She also agreed the fee is scaring away potential buyers, because she's seen several homes just sitting on the market for months.

Joy Earls, a local real estate agent who has a listing at Katoonah, said the new owners are charging new residents $1,000 per month for the lot rent. Earls said this most recent listing is taking the longest time to sell of any listing she's had at Katoonah.

Representatives from Axia did not return a request for comment from the Missoulian.

Reynolds said the rent hikes have caused a lot of stress in the community, because people are paying more for basic goods and many residents need to buy medicine every month. She also thinks it's a bad sign that the homes for sale are not getting bought.

"We're trapped in here because we won't be able to sell our homes," she said. "And we'll lose our homes if we can't afford it anymore. It's unreal."

The Katoonah residents have sent a list of demands to the park's owners, asking for five-year lease terms and for the $650 current lot rent to stay where it's at for that whole term. Then, the residents are asking for rent adjustments to adhere to federal Cost of Living Adjustment standards.

"This policy is essential for keeping Katoonah Lodges within the intended scope of affordable, age-restricted housing," their demand letter states. "These terms represent the collective will of the supermajority of residents and reflect fair, reasonable and sustainable expectations. We are committed to protecting our homes and preserving the affordability and character of the community we have built together."