The benefits of investing in a property leased to DHA (Defence Housing Australia)

When you buy a DHA investment property, you get one of the most secure property investments available in Australia – with no tenanting obligations and a rental income that is guaranteed throughout the lease term.

DHA offers an extensive range of property-related services for investors which are provided throughout the lease term in return for the service fee charged.

These services include:

• Guaranteed rent regardless of whether the property is tenanted. The rent is guaranteed and paid to the lessor by DHA (Defence Housing Australia), not the tenant.
• Long term leases up to 15 years and sometimes longer.
• Lease-end make-good. Properties are repainted or repainted AND recarpeted at the end of the lease before being handed back to the owners, to live in, rent out or sell.
  • Where the lease term is 6 years or longer the property will be repainted internally
  • Where the lease term is 9 years or more the carpet is replaced and the entire property is painted (except where this is the responsibility of a body corporate).
• Repairs and maintenance. Most maintenance is included in the monthly Property Care fee paid to DHA. Eg - Repair of Replacement of air conditioners, hot water services, oven etc.
• Market rent review conducted annually by independent valuers.
• No letting fee charged when the property is re-tenanted. With non DHA properties, this fee is typically charged equivalent to 1 weeks rent.
• Professional Property Management DHA manage the Defence family occupying the property and carry out inspections and lessor reporting at periodic intervals.
• Online Statements are provided each month itemising payments.
• Bill paying service included for rates and insurance is required, at no cost.

 

DHA Property Care fee (%)

Depending on the property type, the charge is:

• a flat fee of 16.5% (inc GST)
  for freestanding houses or
• a flat fee of 13.0% (inc GST)
  for properties where a body corporate is responsible for some items that would otherwise be covered.

Compare apples with apples!

The DHA all-inclusive Property Care service fee is considered competitive when compared to the true cost of the mainstream Property Management alternatives, which are typically not inclusive of any maintenance and do not include lease end make good provisions, which very easily equates to in excess of $15,000. Refer to the lease or check with us regarding confirmation on the re-carpet and repaint eligibility at lease end.
The service fee is calculated as a percentage of the rent and is deducted from the lessors monthly rental payments.
DHA Property Care is important because it enables DHA to manage and maintain their portfolio to a high standard. Lessors/Owners also benefit by receiving minimal phone calls or bills about property management, repairs and maintenance, creating a hands off stress free experience.

 

Study by independent experts

A comprehensive report by Oxford Economics has concluded that the all-inclusive service fee, on average, saves our investors $3,913 per year over a nine-year term when compared to the real cost associated with typical residential property investment. Click here for more details and access to the findings.

Please refer to our website for a specific property listing and details regarding the exact lease end dates and any relevant extensions as well as the weekly gross rent. Whilst we are not permitted to publicly advertise addresses, we invite you to submit an enquiry and you will immediately receive a response with the relevant details. Alternatively, you are welcome to send us the details of what you are after, including your budget and any desired location, and we can match you to your preferences.