Defence Housing Australia (DHA) reviews the rent of all investment properties they manage for investors. Depending on the version of lease, the method and detail of the rent review can vary. We’ve put together a quick guide of what generally happens.
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 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 valuer if they are not satisfied with the rent review. If investors opt for a secondary review, they are required to supply DHA with a complying valuation as per the conditions of the lease.
Other blogs related to this topic:
Taking a closer look at DHA’s management fee >
Investing in a Defence (DHA) home. So how does it work? >
How did Canberra’s rental market perform in 2016?
According to Domain Rental and House Price Report, rents for both houses and units in Canberra experienced better growth than any other capital city during 2016.
“Median weekly asking rent for a house in the nation’s capital was $500 as of December 2016 – 7.5 per cent higher compared to the same period 12 months earlier. The cost of leasing an apartment jumped to $420 a week, up 7.7 per cent year on year. Source – allhomes
Of course, growth will vary between dwelling types and suburbs. We’ve heard some mixed results from investors’ rent reviews this year. Some rents remained the same, some had slight increases of ten or fifteen dollars per week and one particular property received a very handy ten percent ($45 pw) increase.
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