Cause 4: Imbalances in market power, consumer knowledge and expertise

Home owners are mainly retirees on limited incomes such as the age pension, and are likely to be increasingly vulnerable as they age. Conversely, park owners are increasingly operators of multiple parks with significant resources, expertise and sophistication.

The residential park regulatory framework relies on home owners to advocate for themselves, individually or collectively using dispute resolution processes that many find onerous. Home owners can feel that they are not well-equipped to participate in this process, and their fixed income limits their capacity to pay for legal representation in a dispute with the park owner.

If a home owner thinks that they will be unable to afford to remain in a park, they can feel trapped because they must continue paying site rent until their home is sold or relocated, while park owners are guaranteed income from site rent. This results in an unequal sharing of risk and contributes to an imbalance of power between home owners and park owners.