Efficient Processes Key to Managing Annuals in Caravan Parks

Annual Holiday Sites can provide a good low-maintenance income stream for Victorian caravan park operators when managed effectively. However, it’s critical to have efficient processes in place to limit significant debts accruing.

Annual Holiday Site Holders (Annuals) typically own a movable dwelling, such as a UMD or caravan, located on a designated caravan park site on a temporary 12-month basis.

We recommend that Victorian operators use the CRPVic Annual Holiday Site Agreement template which is only available to members of the Association. The Agreement provides operators with a robust document that clearly sets out the terms of the agreement. It allows Annuals to use the designated site for holiday purposes only and limits the number of days they can stay in any 12-month period, typically up to 180 days.

Issue an Agreement Every Year

It is critical to issue a new Annual Agreement every year to ensure a current Agreement remains in place and an Annual does not inadvertently accrue other rights to use the site. Most operators align their Annual Agreements with the financial year.

We recommend the following process:

1. Determine which Annuals will (and will not) be offered new Annual Agreements.
2. Communicate to Annuals whether they will be offered a new Agreement or not. Although no notice period is required, we recommend completing this step shortly after Easter. This allows occupants not being offered Agreements
   the opportunity to remove their dwelling by the Agreement expiry date. When offering a new Annual Agreement, it’s best practice to require the following within 14 days of the Agreement being provided:
   • The Annual signs and returns the Agreement; and
   • Pays their Site Fees in advance (eg, first month, quarter or half year depending on your trading
     terms).
3. If the Annual does not sign and return the Agreement or pay the Site Fees in advance, we recommend a reminder is sent at least 14 days prior to the
   commencement of the Agreement stating that:
   • The Annual must return the Agreement immediately;
     and
   • Must pay their Site Fees in advance immediately.
4. If the Annual does not comply with Step Three within 7 days, you may withdraw the Annual Agreement offer.
5. Where the Agreement expires without a new Agreement being entered, the Annual’s Dwelling may be treated as uncollected or abandoned goods as per provisions of the Agreement and the Australian Consumer Law and Fair Trading Act 2012 (Vic).

It’s our experience that operators reduce the likelihood of accruing significant debts with their Annuals if the above process is followed. It also ensures each Annual has a current signed Agreement.

Operators who require advice regarding the process for disposal of uncollected or abandoned goods may contact our office for advice.

What if an Annual fails to pay fees?

Operators whose Annuals pay monthly, quarterly or half-yearly can also encounter difficulties if Annuals do not pay on time. We strongly recommend relying on the terms of the Annual Agreement when this occurs and we recommend the following process:

1. If not paid one week prior to the due date – send a courtesy reminder to remind them of the due date of their Site Fees.
2. If not paid by the due date – send a payment reminder within 5 business days of the due date requesting that the Annuals pay within 7 days.
3. If they fail to comply with Step 2 – prepare and serve a Default Notice in accordance with the Annual Agreement. This does not have to be in a specific form but should clearly outline the amount owed, enclose a statement of account and request that the Annual complies within 7 days. The Default Notice should be served by email and registered post.
4. If the Annual fails to comply with the Default Notice – write to confirm that their Agreement has been terminated and they may only attend the caravan park to pay all outstanding fees and remove the dwelling from the Site. When the Agreement has been terminated, the Annual’s Dwelling may be treated as uncollected or abandoned goods as per the provisions of the Agreement and the Australian Consumer Law and Fair Trading Act 2012 (Vic).

Following the above process does not guarantee that Annuals will pay their Site Fees but avoids debts accruing. We also recommend having template emails and letters to apply the above processes with Annuals. This simplifies the process and ensures a consistent approach.

This article only applies to Annual Holiday Site Holders in Victoria and does not apply to residents or site tenants in caravan parks under the Residential Tenancies Act 1997 (Vic).

If you need assistance in implementing the above process or handling disputes with Annuals, contact our office on 0493 451 143 or email admin@pinnacleparks.com.au.

Article authored by Cameron Findlay, Managing Principal of Pinnacle Parks Legal