Park operators can no longer conduct rent reviews based on market rates.
Site rent increases cannot be higher than the current CPI or 3.5 per cent.
Home owners whose properties have been on the market for more than 18 months can participate in a buyback or site reduction scheme.
Processes for terminating site agreements and receiving compensation will be fairer for home owners.
The CPI will now be aligned more closely to the increases in the aged pension, meaning that site rent adjustments will be tied to changes in living costs for pensioners. Any reference in existing or new site agreements to the CPI will now be taken to be a reference to the ‘All Groups Weighted Average of Eight Capital Cities’ published by the ABS.
In six months, further reforms will come into effect requiring multiple site rent payment options on new site agreements.
Park operators will be given 12 months to roll out these options to all existing home owners.
Other key reforms in the Bill will commence by proclamation at a later date including:
- Residential park comparison documents
- Changes to home-selling processes
- New registration requirements for residential parks
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Requirements around maintenance and capital replacement plans