Residential park living is unique. The parks can provide a location and facilities you may not normally be able to afford to buy and you may feel safer in a community living close to others.
Residential parks provide sites upon which relocatable homes are placed as well as shared facilities for use by tenants. Long-stay tenants either rent a home and a site, or rent a site only and own the home on the site. The home may be a caravan, cabin, park home or motor home. The parks can be mixed use with holiday-makers or they can be dedicated to long-stay.
Whether you own the home or not, park living always involves renting the site but this style of living is not covered by the Residential Tenancies Act like a rental home. It has its own set of rules under the Residential Parks (Long-stay Tenants) Act 2006 (Parks Act).
Long-stay agreements will often allow for rent to be varied during the term of the agreement. It could state the rent will be increased by an annual percentage, a fixed amount or inline with changes to the Consumer Price Index (CPI). Make sure you understand how much rent will cost under the long-stay agreement and when and how it may be increased. You need to be certain you will be able to afford to live in the park in the future.
It’s important to keep in mind that different rules apply depending on the type of agreement and whether it was entered into before or after 31 January 2022. These rules are explained in detail in Consumer Protection’s handy Park Living Information booklet. Ask your park manager for your copy if you can’t access it online.
In limited situations a park operator may be able to increase the rent at times not detailed in your agreement to cover significant increased operational costs or unforeseen repairs. The park operator will be required to either obtain the tenant’s consent to this rent increase or apply to the State Administrative Tribunal to approve the increase in rent.
In all cases, a park operator must give 60 days’ written notice of a proposed rent increase, setting out details of proposed rent and when it will begin. There must be a minimum period between rent variations or increases of 12 months for site-only agreements and six months for on-site home agreements. A shorter period can apply for the first rent variation if the park operator reviews rent in accordance with a set schedule and has given the tenant notice of the schedule before the agreement was entered into. For example, a park operator may review rent for the whole park on 1 July every year.
Other than rent and bond, you can also be charged for other costs permitted under the Parks Act. These could include costs for internet access, garden maintenance or utilities.
It is common for park operators to buy electricity in bulk from a licensed retailer, such as Synergy or Horizon power, or generate its own electricity before on-selling it to you from an “embedded network”. An embedded network is a private electricity network servicing multiple lots within the one property.
Electricity costs are normally made up of a supply charge and a consumption charge. Under the Parks Act, a park operator can only charge you an amount for your consumption of electricity and only if the park home has a separate electricity meter. A park operator cannot charge you an amount for the supply of electricity as separate fee.
If the park operator buys electricity from Synergy or Horizon Power, they cannot charge you more than Synergy or Horizon Power can charge its usual residential customers. If the park buys power from another retailer then your consumption fee must be “reasonable.”
If you live in a park that generates its own electricity, you cannot be charged more for the electricity than the cost the park incurs in generating that electricity.
Your rights regarding embedded networks are protected by legislation and if you have concerns about what you’re being charged, contact Consumer Protection 1300 30 40 54.
Visit consumerprotection.wa.gov.au for fact sheets related to living in a residential park.