For almost a decade, pensioners Trish Reece and her husband Wayne have been living in a gated village in Shepparton in regional Victoria, run by the controversial land lease operator Lifestyle Communities.But she says they are stuck, financially, due to the so-called exit fees charged by the company when a resident sells their home.
The investigation highlighted claims Lifestyle is gouging residents with unfair fees, which some of its competitors don't charge, and charging dead people rent, a practice that is common across the industry.The company's share price also took a flogging, falling 24 per cent as investors lost confidence after the company confirmed a significant downgrade of profit for 2024.
All up, Lifestyle deducted $104,831 in exit fees, rent and selling fees, leaving them with $180,168. When they sell the place they are currently in they will face a third exit fee."We would have been better off financially if we stayed in the original home because we wouldn't be up for three sets of exit fees," she says.
"The affordability of our homes is a key reason many residents choose a Lifestyle Communities option in the first place given the lower up-front cost due to the model," Lifestyle said.
"It is also important to note that Lifestyle does not make a profit on agent commissions," the company said.Lifestyle, which declined to give an on-camera interview for the 7.30 investigation, wrote to all residents the day after the program aired, expressing it was "disappointed" with the coverage and that it was "distressed that this matter is playing out in the media and the impact this may have on the Lifestyle brand and potential value of your homes".
"The price of our home has significantly increased over the years, in fact so much so, that the exit fees will be more than covered … We have our own voices and do not agree with what was said," the resident said. "Lifestyle stands behind the model and notes that most operators in Victoria have ," its statement said.The issues raised by some of the residents at Lifestyle's Wollert Community have put the national spotlight on a sector that until now has largely flown under the radar, despite its size and gaps in the state-based regulations.
"A recurring theme in our conversations with home owners when they come to us with concerns is their feelings of being trapped and unable to do anything about the injustices of the situation they face," he said. The petition, supplied to the ABC, says residents feel misled and that the facility has not met their expectations.
She tried to leave her land lease community a few years ago but the exorbitant fees made it unaffordable to buy elsewhere.Judy decided to do something about the lack of protections for retirees and 18 months ago set up a grassroots group, Victorian Manufactured Home Owners Association, to lobby for change."The operators have been allowed to go on their merry way and do as they please," she says.
"Some examples include mould growing in bathrooms, leaking windows, plumbing not connected, poor drainage and mould building up underneath houses from lack of ventilation." "We hope to see the government take action on things like unfair fees, management training and accreditation, and issues with dispute resolution," she says.She says over the past two and a half years, one of the land lease companies about which residents contacted her organisation most for advice was Palm Lake Resort Willow Lodge, operated by Palm Lake Group.
Donna Moore challenged Palm Lake Resort in VCAT after she inherited her grandmother's home and faced difficulties selling it.The tribunal upheld her grandmother's 99-year lease and in a separate hearing found that the house didn't have "serious defects". Ms Moore says she sold her grandmother's home later that year for $240,000, which was significantly more than the original offer.She described the behaviour as elder financial abuse.In a statement, the company said: "There are several older Willow Lodge homes that do not pass modern building requirements because building standards have changed dramatically over the past five decades.