Manufactured homes have become an increasingly popular housing option in Queensland, particularly among retirees seeking an alternative to traditional home ownership.
Unlike conventional residential properties, manufactured homes are generally owned by the residents, while the land on which the homes are positioned is rented from the residential park operator.
This arrangement creates a distinctive legal relationship between homeowners and park operators, particularly when it comes to site rent increases.
The Manufactured Homes (Residential Parks) Act 2003 (Qld) regulates this relationship and establishes important protections concerning site agreements and rental increases.
The decision in Serenitas Communities Holdings Pty Ltd v Tassell [2024] QCATA 56 provides an example of how disputes concerning site rent increases can arise and the matters that may influence the outcome.
Background to the Dispute
The dispute concerned a manufactured home residential park situated in Maryborough, Queensland, operated by Serenitas Communities Holdings Pty Ltd.
In February 2020, the park operator undertook a market rent review and increased the weekly site rent from approximately $170 to $196.50.
The proposed increase was disputed by groups of homeowners who considered the additional rent excessive.
The operator relied on an independent valuation report which compared rental amounts charged at other manufactured home parks in Hervey Bay and Bargara.
However, the homeowners maintained that the proposed increase did not adequately reflect the circumstances of their residential park.
The dispute was referred to the Queensland Civil and Administrative Tribunal (QCAT), which considered whether the increase was excessive under the legislation then in force.
What Did QCAT Decide?
QCAT found that the proposed site rent increase was excessive and reduced the weekly rent to $185.
The Tribunal also ordered the park operator to refund any overpayments made by affected homeowners.
In reaching its decision, QCAT considered the rental amounts charged at comparable residential parks and the differences in the facilities available to residents.
Although the operator had undertaken substantial improvements to the park, QCAT considered whether those improvements were directed at accommodating additional residents, rather than benefiting existing residents.
The Tribunal also examined the treatment of water allowances included within the site rent.
It considered that the value of an allowance for water consumption should be taken into account when comparing rents, rather than simply added as a separate amount regardless of actual consumption.
The operator subsequently appealed the decision.
On 27 May 2024, the QCAT Appeal Tribunal dismissed the appeals.
Although the Appeal Tribunal identified an error concerning the rental comparison with one park in Bargara, it concluded that this did not justify disturbing the original determination.
The decision to reduce site rent to $185 per week therefore remained in place.
Why Is This Decision Important?
The decision demonstrates that a market valuation does not necessarily establish that a proposed site rent increase is reasonable.
At the time of the dispute, QCAT was required to consider the relevant statutory factors when determining whether an increase was excessive.
The quality of communal facilities and differences between comparable parks could influence that assessment.
The decision also highlights the importance of understanding how operating arrangements affect site rental calculations.
For park operators, expenditure on additional facilities does not necessarily establish that a particular rental increase is justified.
For homeowners, the decision demonstrates that proposed increases may be challenged where there is an appropriate legal basis for doing so.
How Has Queensland Law Changed Since the Decision?
Following the decision, Queensland introduced significant amendments to the Manufactured Homes (Residential Parks) Act 2003.
The Manufactured Homes (Residential Parks) Amendment Act 2024 received assent and commenced on 6 June 2024, restricting ordinary site rent increases to the greater of the Consumer Price Index (CPI) increase or 3.5%.
Importantly, this is a statutory ceiling rather than an automatic entitlement to increase rent by that amount.
If the site agreement provides for a smaller increase, the operator cannot simply rely on the statutory ceiling to charge more.
The amendments also made market rent review clauses ineffective as a basis for increasing site rent, subject to transitional arrangements for review processes that had already commenced.
This represents an important departure from the legal framework considered in Serenitas v Tassell, where the dispute arose from a market rent review.
For the purposes of the cap, CPI is calculated by reference to the weighted average of the eight capital cities.
Further reforms commenced on 6 December 2025, prescribing the permissible bases for site rent increases in new site agreements.
The legislation also contains transitional arrangements for existing agreements and separate provisions concerning certain special-cost increases.
Accordingly, the current rights of a park operator or homeowner must be assessed by reference to both the relevant site agreement and the legislation.
What Does This Mean for Park Operators and Homeowners?
For residential park operators, site rent increases require careful consideration of the contractual arrangements and applicable legislative requirements.
An increase that is inconsistent with the legislation may be ineffective, even where the operator considers the increase commercially reasonable.
For homeowners, understanding the basis of a proposed increase is equally important.
A homeowner who considers an increase excessive may have rights to challenge it through the statutory dispute resolution process, provided the relevant requirements and timeframes are observed.
The decision in Serenitas v Tassell, considered alongside the subsequent legislative reforms, illustrates the importance of ensuring that site rent arrangements remain legally compliant.
How Vojdani Lawyers Can Assist
At Vojdani Lawyers, we advise clients on property and commercial matters, including the preparation and review of contractual arrangements affecting residential accommodation.
Our lawyers can assist residential park operators and property owners in understanding their obligations under Queensland legislation, particularly in relation to site agreements and contractual compliance.
Contact Vojdani Lawyers for advice concerning manufactured home residential park arrangements in Queensland.