6 Reasons to consider D.H.A Investment Properties
First, What is a DHA property ?
Defence Housing Australia is a government backed organisation that handles the acquisition & management of residential homes to be used in the defence housing scheme.
The Scheme provides homes for government service people who may be in the Army or Air Force for example and require a government paid property to live in.
The Department of Defence pay’s for their employees rent & provides them these home to live in nearby their workplace which is typically Army or RAAF Bases around Australia, Hence why there is usually a concentration of DHA houses in these specific areas.
What are the main benefits of being a landlord invested in D.H.A properties ?
Guaranteed Rent Return - Rather than have a regular tenant who may forget to pay rent, Lose their Job, Or suffer from a wide range of issues that may prevent them from paying their rent.
Your tenant in this situation is D.H.A Rent is accrued daily & paid in advance AUTOMATED.
THIS IS RENT YOU CAN REALLY RELY ON, They will never let you down & even if your property for some reason becomes unusable they can arrange a temporary rent abatement.Long Term Lease - As an investor you want to know that your property is going to be consistently rented out, This allows you to budget & manage your cash-flow with confidence (it also helps when dealing with the banks)
The average lease length in Sydney may only be 12 months, But with a DHA investment leases typically range from 6 to 12 years a commitment you will probably never get from a typical civilian tenant !Vacancy Management - Not only will DHA manage the onboarding on new tenants should it be required without you needing to take action yourself, But also they will maintain the property inside & out while it is vacant including grounds maintenance, Watering of gardens, Pruning etc so that it always looks great !
Repairs & Maintenance - As part of the DHA service agreement they take full responsibility for all non structural repairs & Maintenance this means unlike a normal investment which can cost you money sporadically and without warning when things break down, With a DHA investment you dont have to lift a finger or spend a cent to upkeep the home. This is a “hand free” investment, If problems arise they will repair without hassling you at all.
Lease end Repairs - When your property comes off lease with DHA, Their level of service and commitment to looking after your property does not necessarily end, Contracts with periods over 9 years (combined) have “make good” clause in them so if the property requires repainting, re-carpeting even when the tenancy is complete DHA will ensure this is taken care of at their expense ensuring that when you take back your keys your home is in great condition & ready for sale, re-leasing as a regular home OR to move in to !
As you can see DHA investing has a few choice advantages that please astute investors looking for easy to manage investment vehicles. In my time working for Urban Land Housing I have personally overseen the marketing and sale of over 10 DHA investment properties across NSW and have spoken with literally hundred of DHA investors.
Being a curious type of guy I always ask them; “how do you find DHA investing ?” and I can tell you I have never ever had anyone respond with anything other than absolute praise, In fact most of the DHA investors I speak to hold more than one property & are constantly on the hunt for more because they enjoy keeping these in their portfolios so much.
