Queensland Housing Minister Meaghan Scanlon introduced a Bill to amend the Manufactured Homes (Residential Parks) Act 2003, on Thursday 21 March, that will establish a Code Of Conduct for the rental land lease sector, capping site rent increases, limiting site rent liability after the home is vacated, changing sales procedures and launching a home owner 'opt in' buyback scheme.
Aimed at enhancing consumer protections while maintaining industry viability, the Bill proposes significant changes and steers the land lease regulatory regime closer to retirement villages legislation.
Tammy Berghofer, Partner, Real Estate / Retirement Living, MinterEllison, said the key amendments include:
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Prohibiting market site rent reviews;
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Limiting site rent increases to the greater of CPI or 3.5%;
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Introducing a buyback and rent reduction scheme that home owners can 'opt in' to. The proposed buyback timeframe is 18 months after a notice of intention to sell is given to the park owner. There are extensive provisions relating to agreement on the resale value, including timing and process for appointment of a registered valuer;
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Capping the timeframe for payment of full site rents to 6 months after the home owner opts in to the buyback scheme. The park owner must reduce site rent by 25%;
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Mandating registration of new residential parks. The park must be registered before a person is induced or invited to induce another person to purchase, pay rent or live in a home in the park;
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Requiring park owners to provide a 'comparison document' to prospective home owners and make that available on the residential park website;
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Implementing a mandatory pre-contractual disclosure regime, with a minimum timeframe of 7 days (and then only if a legal advice certificate is provided by the prospective home owner);
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Requiring maintenance and capital replacement plans for parks;
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Expanding the Queensland Civil and Administrative Tribunal's role, including to issue orders to extend buyback timeframes, to require performance of buyback obligations and to vary existing site agreements.
The Property Council condemned the new measures and said it would make some manufactured home operators financially unviable.
"This Bill sees us taking a backward step in boosting much needed supply and will only discourage investment in new manufactured home parks," Queensland Executive Director Jess Caire said.
"The only way to drive down the cost of rents is to boost supply, not add more regulation which in turn drives out investment."
The Real Estate Institute of Queensland (REIQ) said the Queensland Government amendments diminish a property owner's rights and decision-making powers.
"We think that the government has gone too far with its legislative reform agenda," REIQ chief executive Antonia Mercorella (pictured) told AAP.
"They are very much focused on tenants' rights. But at the same time they are focused on diminishing the decision-making power and rights of property owners and that to us is concerning."
The Housing Minister said the Bill specifically establishes a framework for renters and property owners to negotiate modifications to rental properties that are necessary for a renter's safety, security or accessibility.
"Some renters expressed frustration with how difficult it can be to get property owners to agree to or even respond to requests for changes, like the installation of disability modifications that would allow them to continue living in their home and the community," Ms Scanlon told parliament on Thursday.
She said the government will work closely with the residential sector and peak bodies to ensure a clear negotiation process for modifications.
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