As part of their obligations to investors under their lease, Defence Housing Australia (DHA) conducts an annual rent review on all the investment properties they manage.
Depending on the version of DHA lease, the method and detail of the rent review can vary. To help current and potential investors better understand the process, we’ve put together a brief guide of what generally happens, plus we’ve checked out the performance of Canberra’s rental market during 2017.
The review is performed by a property valuer appointed by DHA.
The property valuer carries out a market rent review. This takes into consideration recent rents achieved by comparable properties on the open rental market.
A review is carried out at the end of each calendar year. The new rent is then paid to the investor from 1 January.
Can a review be appealed?
Yes, the secondary review is a mechanism whereby investors can get a second opinion from their own selected valuer, should they not be satisfied with the initial rent review. If investors opt for a secondary review, they are required to notify DHA and supply a complying valuation as per the conditions of the lease.
Note – If you’re a current investor and would like a suggested list of valuers to carry out a secondary review, please get in touch with us. We’d be delighted to point you in the right direction. Email us.
How did Canberra’s rental market perform in 2017?
According to Domain Rental and House Price Report, rents for both houses and units in Canberra experienced solid growth during 2017.
Median weekly rent for a house in the nation’s capital was $505 as of September 2017 – 6.3% higher compared to the same period 12 months earlier. The cost of leasing an apartment jumped to $420 a week, up 5% per cent during the 12 months to September 2017.
Of course, growth will vary between dwelling types and suburbs across Canberra.
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If you’d like to learn more or you have a specific question, we’d love to hear from you. Drop me a line via email or call 0421 040 082.
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Jonathan Irwin – Director
Capital Defence Homes