Manufactured Home Parks in Victoria: Site Rent, Security of Tenure, and Resale Constraints

Manufactured home parks (also called residential parks or land lease communities) house an estimated 35,000 Victorians, mostly retirees. Residents own their dwelling — a relocatable home, transportable cabin, or upgraded caravan — but rent the land it sits on. Entry prices ($150,000–$500,000) are well below comparable freehold retirement units, but the security of tenure issues, ongoing site rent, and resale restrictions are substantial. Many residents don’t fully understand the trade-off until they try to sell.

This guide covers the legal framework, the fees, and the major checks for buyers considering a manufactured home park residence.

The legal framework

Manufactured home park residences in Victoria are governed by Part 4A of the Residential Tenancies Act 1997, which covers site agreements (the lease for the land underneath the dwelling). The dwelling itself is owned outright by the resident — typically as personal property, not land.

Two layers of contract:

• Site agreement. The lease for the site. Specifies site rent, term, conditions of use, common facilities access.
• Sale of home contract. The purchase of the relocatable dwelling itself. Treated as personal property sale, not land.

Manufactured home park vs retirement village vs freehold

Site rent — the long-term cost

Site rent is the major ongoing cost. Typical Victorian rates:

• $500–$900/month for regional parks
• $700–$1,200/month for outer-Melbourne parks
• $1,000–$1,500/month for inner-suburban or premium parks

Site rent is reviewed periodically — typically annually using a formula that may be CPI-linked or specified percentage. Some older site agreements have problematic rent-review clauses that allow operator-discretion increases.

Security of tenure

Part 4A of the RTA 1997 provides specific protections for site agreements:

• Standard site agreement terms (mandatory)
• Notice requirements before site agreement termination
• Compensation rights when the park closes or relocates
• VCAT jurisdiction for disputes

However, the RTA does not protect against:

• The operator selling the underlying land for redevelopment
• Park closure (with notice and compensation)
• Termination for non-payment of site rent
• Termination for breach of conduct rules

Resale — the key constraint

When a resident wants to sell, they sell the dwelling — not the land. Constraints on resale:

• Operator approval of buyer. The new buyer must be approved as a site agreement holder. The operator can refuse on reasonable grounds (typically age, financial standing, conduct history).
• Site rent for new buyer. Operator can increase site rent for the new buyer. This affects what the buyer is willing to pay.
• Limited buyer pool.Most lenders won’t finance manufactured home purchases. Buyers must be cash purchasers or use personal loans / car loans.
• Refurbishment requirements.Some operators require the dwelling to be refurbished before resale — at the seller’s cost.

Park closure — the worst-case

Park closures occur when the operator sells the land for redevelopment. The RTA provides for:

• 12+ months notice
• Compensation for relocation costs
• Compensation for loss of value
• Tribunal review of compensation amounts

Compensation rarely matches what residents have lost, particularly where the park has been their home for 10+ years.

Buyer checks

1. Site agreement document — read full terms
2. Site rent history (last 5 years) — confirm escalation pattern
3. Park rules — conduct rules, pets, visitors, modifications
4. Operator’s financial position — VCAT search for disputes
5. Land zoning and planning — is the land vulnerable to redevelopment?
6. Common facilities and condition
7. Operator buyback or assistance for resale
8. Specialist solicitor review

Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.