DHA Property Management: How do DHA Look After Your Property?
One of the ongoing problems faced by investors is trying to maintain a rental property.
Most property investors are faced with a range of costs associated with maintenance and general upkeep, repairs and of course the ongoing issues with vacancies.
One of the advantages of purchasing a DHA leased property is that all of these areas are taken care of making it a great investment for those looking for something a bit more ‘hands-off.’
So what is included when you invest in a DHA leased property?
Repairs and Maintenance
The DHA will take care of the vast majority of ongoing maintenance and repairs for your property, but it’s important to understand your responsibilities as the owner.
Most non-essential and non-structural repairs are taken care of by the DHA. This means things like maintaining the gardens and also providing a ‘like-for-like’ replacement of fixed appliances if they wear out or break down.
Issues that arise regarding the structure of the building or pests normally are the responsibility of the owner. The DHA will help facilitate the works that need to be done. These types of issues do arise, but when purchasing any property it’s always advisable to get a building and pest inspection done, as a part of your offer.
It’s also the responsibility of the owner to take care of water, electricity and gas as well as insurance.
At the conclusion of the lease, DHA will also make sure your property is professionally cleaned with the gardens neat and tidy, as well as having all appliances in working order.
In the event of an emergency such as a flood or bushfire, DHA will be proactive on your behalf.
One of the big advantages of purchasing a DHA leased property is that you’ll not have to worry about having your property sitting vacant and losing valuable rental income. That’s the rental guarantee that comes with owning a DHA leased property.
At the same time, even when your property is not tenanted, the property is still maintained. That’s particularly important for homes that have large gardens or grounds that need regular upkeep.
During the term of the lease, DHA will look after the tenant and also do regular inspections. Owners are provided with regular updates on the condition of the property and are free to inspect on an annual basis.
It’s important to understand that both the value of a DHA leased property and the amount of rental income you receive is linked to the broader market in that area.
When it comes to the rent, DHA uses a licensed valuer to set the rent which will be based on comparable properties and rents in the area. That gives investors the advantage of begin able to receive regular rent increases in line with the market.
The DHA charges a flat 16.5% fee for managing the property and taking care of all the ongoing maintenance and basic repair costs.
The management fee also takes into account the extra income you gain as an investor by not having any periods of vacancy. Which can add up considerably if your property has a high turnover of tenants.
For those properties that are strata titled and have a strata that take care of some of the associated repairs and maintenance, the property management fee is 13.5%.
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