Tens of thousands of Australians live permanently in caravan parks and residential parks — many are retirees who own their home (the caravan or manufactured home) but rent the site it sits on. This creates a uniquely vulnerable position: you own an asset worth $50,000-$300,000+ that you can't easily move, and the park operator controls the land. Site agreements govern your ongoing costs, tenure security, and the conditions under which you can be asked to leave. Getting these terms wrong can mean losing both your home and your investment.
What is a Residential Site Agreement?
A residential site agreement is a contract between a park resident and the park operator for the rental of a site on which the resident's manufactured home, caravan, or relocatable home is situated. Each state has its own legislation: NSW has the Residential (Land Lease) Communities Act 2013, Victoria has the Residential Tenancies Act 1997 (Part 4A), Queensland has the Manufactured Homes (Residential Parks) Act 2003, and other states have similar frameworks. The agreement covers site rent, maintenance obligations, park rules, rent increase mechanisms, and termination provisions.
Red flags to watch for
In NSW, site fees can increase by CPI or by a fixed percentage if specified in the agreement. In other states, 'market review' increases are common and can be substantial. If the agreement doesn't clearly specify the method of increase, you have less protection against excessive hikes.
A fixed-term agreement that ends with no automatic renewal or right of continuation leaves you vulnerable. When the term expires, the operator could refuse to renew, forcing you to move a home that may cost more to relocate than it's worth.
Some operators require the buyer to be 'approved' and may impose conditions that make selling difficult, or may require you to sell through the operator (who takes a commission). In some states, unreasonable withholding of consent to assignment is prohibited.
If the agreement doesn't clearly define the operator's maintenance obligations (roads, gardens, community facilities, utilities), you may end up paying site rent with deteriorating amenities and no contractual remedy.
Some older agreements include fees payable to the operator when you sell your home on-site. In NSW, exit fees have been banned for new agreements under the Residential (Land Lease) Communities Act 2013, but they may persist in legacy agreements.
Your legal rights
In NSW, the Residential (Land Lease) Communities Act 2013 provides tenure protection, regulates rent increases, bans exit fees on new agreements, and gives residents access to the NSW Civil and Administrative Tribunal (NCAT). In Victoria, Part 4A of the Residential Tenancies Act 1997 covers site agreements, with disputes handled by VCAT. In Queensland, the Manufactured Homes (Residential Parks) Act 2003 provides similar protections, including dispute resolution through QCAT. Key protections across most states include: minimum notice periods for rent increases, restrictions on eviction (generally only for specified grounds), and rights to assign the agreement when selling the home.
Questions to ask before you sign
- 1How are site rent increases calculated, and what is the maximum annual increase?
- 2Is this agreement ongoing or fixed-term, and what are the renewal provisions?
- 3Can I sell my home to any buyer, or does the operator need to approve the buyer?
- 4Are there any exit fees or selling commissions payable to the operator?
- 5What maintenance is the operator responsible for, and what falls to residents?
- 6What are the grounds on which the operator can terminate this agreement?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.