Rent and hiring charge increases

A residency agreement that includes an end date is called a ‘fixed-term’ residency agreement. The term could be, for example, 6 or 12 months, but may also be long-term (5 years or more).

If your residency agreement is for a fixed term, the rent or hiring charge cannot be increased at all during that term, unless the residency agreement includes a rent or hiring charge increase clause, which says how much it will be increased. Even if there is a rent or hiring charge increase clause, you must be given a notice of rent or hiring charge increase.

If your residency agreement includes a rent or hiring charge increase clause

Even if your residency agreement includes a rent or hiring charge increase clause, the rent or hiring charge cannot be increased more often than the law allows, which is once every 12 months.

If you do not agree to a rent or hiring charge increase clause before you sign

A valid residency agreement does not need to contain a rent or hiring charge increase clause. It is something that some park or caravan owners may decide to include, so it is important to read the residency agreement carefully before you sign it.

Before you sign the residency agreement, if you do not agree to a rent or hiring charge increase clause being included, you can ask for it to be removed or crossed out. If you and the park or caravan owner agree to cross out the clause, you should all sign next to the change to show that everyone has agreed to this.

If the park or caravan owner will not remove the clause, it is your decision whether to sign the residency agreement or find a different caravan to rent.

Residency agreements without an end date are called ‘periodic agreements’ (often known as month-by-month agreements). Since 29 March 2021, rent and hiring charge increases under these agreements cannot occur more often than once every 12 months, no matter when the agreement originally started.

The park or caravan owner cannot include anything in your residency agreement that makes you responsible for paying an increased amount of rent or hiring charge if you break any of the rules of the residency agreement.

Any term that does this is prohibited (banned). It is an offence to include a prohibited term in a residency agreement. To learn more, see the page on this website about leases (rental agreements).

If your residency agreement includes a prohibited term

If you have a residency agreement that includes a prohibited term, the park or caravan owner cannot enforce it. If the park or caravan owner refuses to remove it from your agreement, you can apply to VCAT, which can order that the term does not apply. For information on applying to VCAT, see our page about going to VCAT.

You can also report an offence to Consumer Affairs Victoria, which can issue an infringement notice (fine) to the park or caravan owner if they failed to follow the law.

The park or caravan owner must use the official Consumer Affairs Victoria form: Notice of proposed rent/hiring charge increase to resident(s) of caravan park [Word].

Only one increase can be listed on each notice. If the park owner is also the caravan owner and they want to increase both your rent and hiring charge, they must give you a separate notice for each increase.

For rent increases, the notice can be given at any time. However, the rent increase cannot begin until:

• At least 90 days have passed since the notice was given (the minimum notice period), and
• 12 months since the last rent increase took effect

For hiring charge increases, the notice can be given at any time. However, the hiring charge increase cannot begin until:

• At least 60 days have passed since the notice was given (the minimum notice period), and
• 12 months since the last hiring charge increase took effect

The increase must not come into effect during a fixed-term residency agreement, unless the current agreement specifically allows it (has a rent or hiring charge increase clause).

The notice can be given to you:

• In person (between 8 am and 6 pm)
• By mail, or
• Electronically, if you have given consent to receive notices this way

For more information on consenting to have notices sent electronically, see our page about starting a tenancy.

The notice must include:

• The amount of the rent or hiring charge increase
• Details about your right to apply to Consumer Affairs Victoria to have the proposed increase assessed, if you think it is too high
• The date the increase starts

If the park or caravan owner does not follow these rules, you can challenge the validity of the increase notice at Rental Dispute Resolution Victoria (RDRV).

If you and the park or caravan owner do not reach an agreement through RDRV, you can take the dispute to a formal VCAT hearing. VCAT will look at everyone’s evidence, apply the law and make a final decision.

See the information on this page about how to challenge the rent or hiring charge increase at RDRV.

Note: Even if you are challenging the rent or hiring charge increase notice because it was issued in a way that is against the rules, you must still pay the extra amount, or 110% of what you currently pay (whichever is less), once the start date of the proposed increase arrives. If you don’t do this, and VCAT later finds that the rent or hiring charge increase is legally valid, you may have gone into rent arrears (fallen behind in your rent or hiring charges), which can lead to a notice to vacate and possible eviction. See our pages on overdue rent and notices to vacate and eviction.

If you think the rent or hiring charge increase is too high, you should first apply to Consumer Affairs Victoria to assess it. This service is free.

You must apply in writing within 30 days of receiving the notice of an increase.

There are 2 ways to apply:

• Use the ‘Rent increase/hiring charge increase investigation’ section on the last page of the official notice of rent or hiring charge increase that the park or caravan owner gave you
• Use the Consumer Affairs Victoria online form: Request for rental assessment

What happens at the assessment

A Consumer Affairs Victoria inspector may contact you to arrange a visit to your home, or they may be able to review the rent or hiring charge increase without visiting you.

Depending on whether you are challenging a rent increase or a hiring charge increase, or both, the inspector will look at the condition of the caravan and/or site and any facilities or services provided as part of your residency agreement, and compare the proposed increase with rents and/or hiring charges for similar caravans and caravan parks.

During the inspection, you should point out anything that supports your claim that the rent or hiring charge increase is excessive. If the inspector is doing the review without visiting you, you should contact them to give them this information.

If you are challenging a rent increase, you may wish to point out:

• Rents paid for similar sites in the caravan park and rents paid for similar sites in similar caravan parks
• The state of repair and general condition of the site and the caravan park
• Any changes in costs to the caravan park owner for providing facilities or services
• Any facilities, services or improvements that you have provided rather than the park or caravan owner – for example, garden maintenance, or appliances or fittings
• Any changes in the rent and the condition of the site or facilities or services since the start of your residency agreement and since the last rent increase
• The number of rent increases (if any) in the last 24 months and the amount of each of those increases

If you are challenging a hiring charge increase, you may wish to point out:

• Hiring charges paid for similar caravans
• The state of repair and general condition of the caravan
• The number of hiring charge increases (if any) in the last 24 months and the amount of each of those increases

Rent assessment report

Once the inspector has carried out an investigation, you and the park or caravan owner will receive a written report.

If the inspector’s report says that the rent or hiring charge increase is too high, they may try to negotiate a fairer rent or hiring charge with the park or caravan owner. You can also do this yourself – see the information on this page about how to negotiate with the park or caravan owner.

Even if the inspector’s report says the increase is not too high, you can still negotiate directly with the park or caravan owner, and you can still apply to Rental Dispute Resolution Victoria (RDRV) to try to reach an agreement. However, it will be more difficult to succeed without the rent assessment report or if the report says the increase is not too high.

It is worth trying to negotiate with the park or caravan owner about the rent or hiring charge increase.

If you have a Consumer Affairs Victoria rent assessment report that says the increase is too high, or you have done your own research about rents in similar parks, or hiring charges for similar caravans in the park or in similar parks, you can use this to try to negotiate. If you do come to an agreement, put it in writing, make sure you both sign it and keep a copy.

If the park or caravan owner does not agree to withdraw the notice or reduce the amount of the increase, you can apply to Rental Dispute Resolution Victoria (RDRV) to resolve the dispute. If you have a Consumer Affairs Victoria rent assessment report, you can attach it to your RDRV application. Find out more on this page about challenging the rent or hiring charge increase at RDRV.

Even if the park or caravan owner is willing to negotiate, it can still be worth applying to RDRV. RDRV gives you the benefit of negotiating with an independent mediator present. If you reach an agreement, you can also get it formalised as a VCAT order so it is enforceable. For more about the process of going through RDRV, including tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

You can apply to Rental Dispute Resolution Victoria (RDRV) online using myRDRV, or you can submit your application by email, by post or in person at an RDRV office.

If you have a Consumer Affairs Victoria rent assessment report, you should attach it to your application.

Once you have applied to RDRV, you should give the park or caravan owner a copy of your application and any documents or evidence you attached to it.

An RDRV resolution coordinator will review your application and contact you to discuss your options. They may also contact the park or caravan owner to understand their side of the dispute.

If the resolution coordinator decides the dispute should progress through RDRV, they will explain the next steps to you. They will also let you know if you need to provide further documents or evidence.

For more on applying to RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

It is important to organise your documents and evidence before discussions with the park or caravan owner at Rental Dispute Resolution Victoria (RDRV).

You may have already attached some documentation to your application. Or you may have applied to RDRV with just your details and some basic information about the dispute. The resolution coordinator will let you know if you need to provide further documents or evidence. The park or caravan owner may also ask you to provide evidence during the RDRV session, and you can ask them to do the same.

The more clearly organised your documents are, the easier and more efficient your negotiations will be, and the more likely the dispute will be resolved.

Your documents and evidence may include:

• Your Consumer Affairs Victoria rent assessment report, if you have one
• Photos or videos showing the condition of your caravan or site, or problems with the park or location, including any changes since the start of your residency agreement and since the last rent or hiring charge increase
• Rent and hiring charges paid for similar caravans or sites in the caravan park
• Your research into rent and hiring charges paid for similar caravans or sites in similar parks, which may include construction, size, rooms, facilities and services. Even if the Consumer Affairs Victoria rent assessment finds the increase is not excessive, you can still provide your own analysis to support your case
• The cost of any facilities or services that you provide rather than the park or caravan owner – for example, garden maintenance, or appliances or fittings
• Details about any improvements or modifications you have made to the caravan or site, with the park or caravan owner’s consent or agreement
• Documentation showing the number of rent or hiring charge increases (if any) in the last 24 months and the amount of each of those increases

You can copy, scan or take photos, but make sure everything is clear enough to read.

For more on providing documents and evidence at RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

After the resolution coordinator has spoken separately with you and the park or caravan owner, they may organise a facilitated discussion through Rental Dispute Resolution Victoria (RDRV), where you can both try to negotiate an agreement.

The facilitated discussion usually takes place by phone, videoconference or email. The resolution coordinator may bring you and the park or caravan owner together to talk, or they may act as a go-between, passing on claims, offers and options so you don’t need to speak to each other directly.

If the resolution coordinator believes a more structured, face-to-face meeting might be the best option to resolve the dispute, they may invite you both to a formal mediation session.

Because the resolution coordinator cannot give legal advice, it is important that you understand your legal rights before going into a discussion or mediation session at RDRV. You can also organise for a lawyer or advocate to represent you. Find out more on this page about getting help.

If you reach an agreement at RDRV

If you and the park or caravan owner reach an agreement at RDRV, you should put it in writing to make sure everyone follows through on their commitments.

You can ask for your written agreement to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves.

For more on what to do if you reach an agreement, and tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

If you do not reach an agreement at RDRV

You do not have to reach agreement at RDRV. If you and the park or caravan owner cannot resolve all the issues through RDRV, or if either side does not wish to continue with RDRV, you can ask the resolution coordinator to refer the dispute to VCAT for a formal hearing.

VCAT will let you know the time, date and location of the hearing. The hearing may take place in person, by phone (teleconference) or by videoconference.

Hearings about rent and hiring charge increases are usually held within 4 weeks of you applying to Rental Dispute Resolution Victoria (RDRV).

If you need to change the date or format of the hearing

If you cannot attend the hearing, you may be able to change the date. Call VCAT on 1300 018 228 or use VCAT’s application form to change a hearing date.

If you want to request a different format for the hearing – for example, if the hearing is going to be by video but you would prefer to attend by phone – you can call VCAT on 1300 018 228 or email renting@courts.vic.gov.au.

You can also let the resolution coordinator know about any dates you are unavailable or your preferred format for the hearing, or you can note these in your RDRV application. However, it will always be up to VCAT to approve these requests.

Before the VCAT hearing, you and the park or caravan owner can continue trying to reach an agreement, even outside of Rental Dispute Resolution Victoria (RDRV).

If you reach an agreement, you can ask the resolution coordinator to organise for it to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves, and ask the resolution coordinator to withdraw the VCAT case. Either way, you will not need to attend a hearing.

Find out more about what to do if you reach an agreement on our page on going to RDRV (Rental Dispute Resolution Victoria).

If you and the park or caravan owner tried to resolve the dispute at Rental Dispute Resolution Victoria (RDRV) before going to VCAT, anything that was said or done at RDRV cannot be used as evidence at VCAT unless everyone agrees in writing. For example, if the park or caravan owner admits during an RDRV discussion that the increase is too high, or if you agree that there are sites for similar rents in similar caravan parks, these statements cannot be used as evidence at VCAT.

If you submitted documents, photos or videos as part of your evidence for RDRV, you will not need to submit these again to VCAT. However, you may need to provide further documents or evidence for the hearing.

Before the hearing, you should make sure the park or caravan owner and VCAT have a copy of any documents or evidence you will use at the hearing. In some situations, the resolution coordinator may help to ensure your documents are ready for the hearing. See more on this page about the types of documents and evidence you might use to support your claim. The VCAT website also has tips on preparing evidence.

The park or caravan owner must also make sure you have a copy of any documents or evidence they will use at the hearing. If they present evidence at the hearing that you have not seen, you can ask VCAT to reschedule (adjourn) the hearing so you have time to look at the new evidence. While it may not always be necessary to adjourn the hearing, it can be helpful in more complex disputes.

To prepare for the hearing, get all your evidence together and make a few brief notes outlining what you want to say. Being organised is the key to presenting a good case. For more information on getting ready, see our page about going to VCAT.

Protecting your personal information

In some circumstances, it may be necessary to share personal information relating to issues like trauma, family violence or your mental or physical health, or that of another household member. If this applies to you, you can raise this with VCAT and ask that the information be restricted under the Open Courts Act 2013 (Vic). This usually means that your personal information will be anonymous and not made public. It will be up to VCAT to decide if this is appropriate.

If you have any concerns about providing personal information to VCAT after going through RDRV, raise them with the resolution coordinator.

At VCAT the person who hears and decides on your case is called a member. The VCAT member will listen to each side, review any evidence and make a decision that resolves the dispute.

What VCAT will consider when deciding if the notice of increase is valid

When deciding whether the notice of rent or hiring charge increase is legally valid, the VCAT member will check:

• If the notice was in the correct form
• If it was given to you the right way
• If it gave you at least 90 days notice before the rent increase takes effect, or 60 days before the hiring charge increase takes effect
• Whether the notice correctly states the amount of rent or hiring charge you currently pay and accurately states the increased amount

What VCAT will consider when deciding if the increase is too high

When deciding whether a rent increase is too high, the VCAT member will look at:

• Rents paid for similar sites in the caravan park and rents paid for similar sites in similar caravan parks
• The state of repair and general condition of the site and the caravan park
• Any changes in costs to the caravan park owner for providing facilities or services
• Any facilities, services or improvements that you provided rather than the park or caravan owner – for example, garden maintenance, or appliances or fittings
• Any changes in the rent and the condition of the site or facilities or services since the start of your residency agreement and since the last rent increase
• The number of rent increases (if any) in the last 24 months and the amount of each of those increases

When deciding whether a hiring charge increase is too high, the VCAT member will look at:

• Hiring charges paid for similar caravans
• The state of repair and general condition of the caravan
• The number of hiring charge increases (if any) in the last 24 months and the amount of each of those increases

What happens if you don’t have a Consumer Affairs Victoria rent assessment report

If you don’t have a Consumer Affairs Victoria rent assessment report, or you did not request one on time, the VCAT member will first decide whether you have a reasonable excuse for not getting a report or for the delay in asking for one.

If they accept that you have a reasonable excuse, you will need to show your own evidence at the hearing that the rent or hiring charge increase is excessive, and the VCAT member will make a decision based on that.

If they do not accept your excuse for not having a Consumer Affairs Victoria rent assessment report, this could mean your rent or hiring charge goes up under a legally valid notice. For this reason, we strongly recommend you request the report and do so on time.

The VCAT member usually makes a decision, called an order, on the day of the hearing. The member will give the order verbally on the day and in writing either on the day or soon afterwards. If you don’t understand the order on the day, ask the member to explain it to you again.

If the VCAT member finds that the notice of rent or hiring charge increase is invalid, they will order that the rent or hiring charge increase cannot go ahead, and the park or caravan owner will need to issue a new notice to restart the process.

If you have already paid extra rent or hiring charges under an invalid notice, the VCAT member may also order the park or caravan owner to refund you any overpaid amount.

If the VCAT member finds that the notice of rent or hiring charge increase is valid, they will then decide whether the amount of the increase is excessive.

If the VCAT member decides the increase is excessive and sets the rent or hiring charge to a lower amount or refuses to allow the increase, make sure you ask them to order the park or caravan owner to refund any rent or hiring charges that you have overpaid.

If the VCAT member decides that the amount of the rent or hiring charge increase is fair, and you want to stay at the site or caravan, the amount of increased rent or hiring charge will continue to apply.

If you are challenging a rent or hiring charge increase, and the start date of the proposed increase arrives, the law states that you must pay the extra amount or 110% of what you currently pay (whichever is less) until the dispute is resolved. If you don’t do this and VCAT later decides the increase is valid and fair, you may be in rent arrears (behind in your rent or hiring charges), which can lead to a notice to vacate. See our pages on overdue rent and notices to vacate and eviction.

If VCAT decides the increase is not valid or is too high, it should order the park or caravan owner to refund the additional rent or hiring charge to you.

If your rent or hiring charge has increased and you are thinking about ending your residency agreement because you cannot afford the increase, see our page about ending or breaking your lease. You can also consider Tenants Victoria’s free financial counselling service.

If you need support to respond to a rent or hiring charge increase, help is available.

There are step-by-step guides, self-help tools and other resources to assist you with rent increases.

The Residential Tenancies Act is Victoria’s main law for renting. It describes the rights and duties of renters and rental providers (such as park and caravan owners) in numbered sections.

The sections in this list relate to rent and hiring charge increases in caravan parks. Click on a link to see more about the section.

Note: Depending on whether your residency agreement was signed before 2021 (or before 2019), certain sections may not apply.

• Section 144AA – Prohibited terms – general
• Section 152 – Required notice for rent or hiring charge increases
• Section 153 – Resident may complain to Consumer Affairs Victoria about excessive rent or hiring charge
• Section 154 – Application to VCAT about excessive rent or hiring charge
• Section 155 – What can VCAT order?
• Section 156 – Payment of increased rent or hiring charge pending VCAT decision
• Section 157 – Additional rent for visitors
• Section 158 – Additional hiring charges for visitors
• Section 183 – Statement of scale of certain charges, fees and commissions
• Section 452 – General applications to VCAT
• Section 555 – Certain penalties prohibited
• Section 506 – Service of documents

The Residential Tenancies Regulations 2021 provide more detail and definitions, and specify updates to the Residential Tenancies Act.