Queensland government contemplates a rent cap for residential parks to improve protection for residents. Source: RetireAustralia
The state government is contemplating rent caps in residential parks, after the Queensland peak body for residents raised concerns about housing stress amongst residents.
The parks are marketed as affordable alternatives to retirement villages for people over 50. In residential parks, land sites are available to rent under a site agreement.
There are over 200 residential parks across Queensland containing more than 23 000 homes.
Roger Marshall, president of the Queensland Manufactured Home Owners Association, said that an increasing number of residents, who are predominantly older people on pensions, are finding it difficult to afford the yearly rental increases.
“The main challenge that we’re facing right now across Queensland is that we’re locked into site agreements with the park owners, which has resulted in the continuous increase in the rents that we’re paying,” Mr Marshall said.
“It’s to the point where we believe that the park owners are making greater profits on the rents they charge which are over what’s needed to run the park.
“The majority of people living in the parks are either fully or partly dependent on the age pension and the rents in most of the parks take up well over 30 per cent of the age pension.”
Mr Marshall said the increases to rent in residential parks were the result of the consumer price index for Brisbane as well as market rent reviews.
“Both of those generally result in increases which are well above the increases in the age pension and people’s income,” Mr Marshall said.
The Queensland government is looking at reforming the residential parks sector, with changes including a maximum limit on yearly rent increases, prohibiting market rent reviews, and requiring park comparisons to be published online.
Housing Minister Leeanne Enoch said the reform’s main aim is to provide more transparency in the industry and give residents more protection.
“If we’re seeing some unfair practices with regards to the management and the rent of a site, it’s not like you can pick up your manufactured home and go to another site,” Enoch said.
“We want to make sure it’s a very fair process, that its transparent and that the residents who take up the option to live in these residential parks feel as though they are getting the value that they deserve.”
