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What does the option period mean and how is it exercised?

The majority of DHA lease agreements include an option that allows DHA to extend the original lease term for a fixed period. The most common option period is three years.

If DHA wishes to exercise the option, you will be notified in writing at least six months before the lease expiry date.


Can the lease term be reduced or extended?

Yes, the lease allows DHA to reduce or extend the lease term by up to 12 months. In some cases this right may be exercised in addition to DHA exercising the option.

This is necessary because DHA’s provision of housing must be flexible to accommodate changes in tenancy due to Defence postings.

If DHA wishes to vary the lease term, you will be notified in writing informing you of the new lease expiry date.


Can the lease be terminated early?

On occasion, a property may become permanently surplus to DHA’s needs due to a change in Defence requirements.

If this situation occurs, DHA may provide written advice offering you an early termination of the lease. If you do not wish to accept this, DHA may sublet the property in the private rental market until expiry of the lease term.


Can I sell my property during the term of the lease?

You can sell your property at any time, however it must be sold with the lease in place. Written notice of your intention to sell the property must be provided to DHA.

You can appoint a licensed real estate agent of your choice to sell the property, however the lease agreement contains certain conditions as to how the property can be marketed which must be adhered to.