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Rent increases at residential parks
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To increase the rent for those tenants on a periodic agreement with on-site homes:
- 60 days notice in writing is required;
- there must be no increase in the first six months (unless a written notice of a set review date schedule was included with their agreement); and
- there must be a gap of at least six months between each rent increase.
If a long-stay agreement provides for a rent review on the basis of market rent, then when calculating the amount of rent payable on and after the review date, the park manager must consider the recommendation of current market rent from an independent licensed land valuer. Unless the fixed term contract contains a ‘rent variation’ clause the rent is fixed for the term of the agreement.
For a site-only agreement any rent review provisions must be written into the contract. Site rent reviews can only happen once in a 12 months cycle. If the agreement specifies a method of rent reduction (e.g. link to a lower CPI) then this must also be passed on for that review period.
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