Buying a DHA Investment Property

Leasing your property to DHA can provide a secure, long-term tenant. This gives you added comfort of knowing you will be getting a rental income even if the property is vacant. Sounds pretty good right?

buying a DHA Investment Property

Is buying a DHA investment property the right choice for you?

Knowing if buying a DHA investment property is the best option for you can be very confusing. 

Reach out to us to talk through if buying a DHA investment property could meet your investment needs.

DHA is your tenant, therefore you can easily budget knowing you will receive a guaranteed rental income. 

Unlike the standard leases, DHA has options of 6 to 12 years, with a possibility of an extension. 

All properties must meet certain guidelines – this will ensure that the standard of the dwelling will meet the ADF members requirements. 

DHA will manage your property under the Property Care Contract. 

What is DHA?

In a nutshell, DHA provides housing to ADF members and their families. This comes at a reduced rental rate to the member with the ADF picking up the gap to hit market rent. Properties are rented to DHA who hold the lease and manage the ADF members on your behalf. Buying a DHA investment property can appeal to may investors who want a hands off approach.

 

What is a DHA investment property?

A DHA Investment property is typically located close to bases (within 30km) and can have different attributes dependent on the needs of the ADF. Unfortunately they will not just onboard any old house to rent – it must meet extensive guidelines. 

There can be a lot of upside with buying a DHA investment property – guaranteed rent return, long term leases, vacancy management, repairs and maintenance (DHA service agreement will take full responsibility for non structural repairs and maintenance).

 

4 Advantages to buying a DHA investment property

  1. Guaranteed Rent – rent you can count on. Renting property always comes with the risk of not having a tenant, then its you versus the mortgage, which we don’t want at all. With a DHA investment property, you are leasing the property direct to DHA who in turn then manages the ADF member. So if the property is vacant, DHA is still leasing it from you. The rent is accrued daily and paid in advance.. therefore automatically. 
  2. Long Term Leases – can range from 6 to 12 years… so gives you piece of mind allowing you to set up and manage your budget with confidence. Standard civilian leases can be as little as 6 months, therefore a very different story. 
  3.  Quality Properties – this is where many investors can come unstuck. Before you go running off to realestate.com, DHA will not take on any property, far from it. They have a specific criteria and a needs assessment for the chosen location. Unfortunately, different ranks in the military, with different family dynamics can determine how many properties DHA will lease. This process allows only quality properties to be leased so the ADF member can be assured of a standard of living in all posting locations. 
  4. Property Care – when DHA leases your property you will enter a Property Care Contract. This offers an expended service of how DHA will care for your asset.
    • Vacancy Management – managing the occupant moving in and out of the property, whilst also carrying out general maintenance if the property is vacant. 
    • Lease and Repair – organise and cover most non-structural repairs. Includes ‘like-for-like’ replacement of fixed appliances.
    • Emergency Repair – in this event, DHA will invoice the additional payment on top of the service fee.
    • Scheduling and Facilitating – DHA will carry out periodic inspections and provide a report.
    • Rent Review – periodically, DHA will engage a licensed valuer to provide a recommendation for the rent payable on the property. 
 
 

Don't take our word for it...

Don't take our word for it...

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