Option 6—Prohibit market rent reviews

This option directly addresses unfair site rent increases by prohibiting market rent reviews. The option will reduce disputes, reduce rent increases for most home owners, and improve the predictability and fairness of rent increases. The long-run savings to the average home owner from reduced site rent is estimated at $104 per site over 10 years. This equals $3,508,024 assuming 10,000 additional sites (33,731 total) over the next 10 years. An equivalent cost is experienced by park owners from reduced growth in profitability over the next 10-year period. This cost to park owners is offset by a cost saving of approximately $4,360,500 over 10 years from the reduced cost of market valuations. This option scored 7/9 on its contribution to policy objectives and was selected as a component of the preferred package of reform options.

This is a summary of the impacts of option 6 only. For the full impact analysis, read chapter 7 of the C-RIS (PDF, 3.3 MB).