﻿

# Annual allowable rent increase amount: land-lease communities (mobile parks)

Landlords need to follow rules when increasing the rent in a land-lease community (mobile park). Rules include how much the landlord can increase the rent by and when the landlord can increase the rent.

Landlords of land-lease communities (mobile parks) have a number of rules they need to follow when increasing the rent. These guidelines provide information on the Annual Allowable Rent Increase Amount (AARIA), how to calculate the AARIA, using the AARIA to give a rent increase and applying the AARIA to a manufactured (mobile) home.

## Annual Allowable Rent Increase Amount (AARIA)

The AARIA is the amount landlords are allowed to increase their rent by each year in a land-lease community.

The AARIA for 01 January 2019 to 31 December 2019 is 1.2%. The AARIA for 01 January 2020 to 31 December 2020 is 1.7%.

## Calculating AARIA

The formula for calculating the AARIA is: (X + Y) ÷ 2.

X = annual average percentage change for the Consumer Price Index for the calendar year immediately before the year the AARIA is published

Y = annual average percentage change for the Consumer Price Index for the calendar year immediately before the calendar year used for X

If the annual average percentage change for the Consumer Price Index for a given year is a negative value, the percentage change used to calculate the AARIA will be 0.0% for that year.

## Using AARIA to calculate rent increase

Example:

For Land-lease Community ABC, the rent per month was \$200 in 2018. If the landlord wants to increase the rent by the maximum AARIA for 2019, they need to multiply the current rent by the 2019 AARIA of 1.2%. This equals \$2.40 so the landlord can increase the rent by a maximum of \$2.40 to \$202.40.

Calculation:

(Current rent: \$200) x (AARIA: 1.2%) = \$2.40

\$200 + \$2.40 = \$202.40