When you purchase one of our properties you also enter into a lease agreement with us.  Our lease agreement is unique in that it includes tenancy provisions and service provisions called DHA Property Care.


Tenancy provisions

Long term lease
Our standard lease terms are 9 or 12 years. Shorter lease terms of 3 or 6 years may be offered on occasion.

So that we have flexibility to meet our Defence housing obligations, we can vary the lease term by exercising each of the following rights once:

• extend the term by a period up to 36 months
• extend the term by a period up to 12 months, and
• reduce the term by a period up to 12 months.

Our long-term lease allows you to easily adopt a buy and hold strategy. Plus, when you consider residential property market cycles in Australia have historically lasted 7 to 10 years—from peak, to slowing, to a flat period and then back to a peak again—you’ll benefit from time in the market and your portfolio will be less sensitive to fluctuations in property values.

At the end of the lease agreement, vacant possession is given to you. This means you can move in, rent privately or sell as you wish.


Guaranteed rent*
Unlike conventional residential property investment, we calculate your rent from the date of settlement. In addition, with the exception of the first and last month, we pay your rent monthly in advance throughout the lease term. It’s even paid when the property isn’t occupied*.

When you buy a DHA property, we also guarantee to pay the commencing rent or higher for the term of the lease. Your rent will be reviewed to market value each year (see DHA Property Care), but it will never be adjusted below the commencing value. For example, if your commencing rent is $400 per week, it can never drop below $400 a week; but it can go up.

Our rent guarantee* means you can budget easily, because you’ll know exactly what your minimum rental income will be for the term of the lease. Financial institutions also look upon DHA property investment favourably—you receive reliable rent, so they know you’ll have the capacity to repay borrowings**.



Service provisions

A distinguishing feature of our lease agreement is DHA Property Care—an extensive range of property related services we provide during the term in return for a service fee.

We believe our all-inclusive service fee is competitive when compared to the true cost of alternatives. The service fee is calculated as a percentage of the rent and is deducted from your monthly payments. It varies depending on the property type: we charge a flat fee of 16.5% (including GST) for freestanding houses and 13% (including GST) for properties where a Body Corporate is responsible for some items we would otherwise cover.

DHA Property Care is important because it enables us to manage and maintain our portfolio to a high standard, in line with contractual obligations with the Department of Defence. You also benefit by receiving minimal phone calls or bills about property management, repairs and maintenance; your rent is reviewed annually to market value; and your property is restored at lease-end.


Property management
We manage the Defence family occupying the property and carry out inspections and reporting at periodic intervals. There is no need for you to inspect the property throughout the lease term; however this can be arranged each year if you wish.

We also provide you with a statement each month itemising rental payments, outgoings and other expenses. If you wish, once authorised by you, we can pay property related outgoings (e.g. rates and insurance premiums) on your behalf as part of our complimentary bill paying service.


Market rent review
Each year, we engage an independent licensed valuer to review your property’s rent to market value. At each review date, your rent is adjusted to the greater of the commencing rent or market rent; so you can be confident your returns are being maximised.

Even though we have a good track record in providing this service, we accept that, on occasion, you may not be satisfied with the valuer’s assessment. For this reason, our lease agreement enables you to initiate a review process. At your own expense, you engage a licensed valuer to review your property’s rent to market value (as at the review date). The valuers then consult and seek to agree on the valuation of market rent.


Repair and maintenance
Throughout the lease term, we are responsible for organising and covering the cost of most non-structural repair and maintenance, including the replacement of fixed appliances as needed. You retain some obligations, but your responsibilities are significantly reduced compared to conventional residential property investment.

A comprehensive list of each party’s responsibilities is set out in the DHA Lease Agreement. A copy is available upon request.


Emergency repair
In the event of emergency—where action is needed to preserve the property and protect human health, safety and security—we act quickly on your behalf. Examples include flooding, fire or a breakdown or failure of any essential service or appliance for hot water, cooking, heating or laundering.

Upon notification, we will immediately arrange any repair to the property and, as applicable, contact you so that you can notify your insurer. If the emergency arises from an item for which we are responsible for repair and maintenance, we bear the costs. If the emergency falls within your retained responsibilities, we will arrange the works and then recover the costs from you.


Lease-end restoration
As the end of the lease agreement approaches, our service doesn’t stop. We ensure your property is returned in good order by providing a restoration service***.

In all cases, we ensure the property is professionally cleaned; appliances are clean and in good working order; and the dwelling, grounds and landscaping are in a neat and tidy condition.

Where the lease term is 6 years or longer, we paint the property internally. Where the lease term is 9 years or more, we also replace the carpet and paint the external structure (except where this is the responsibility of a Body Corporate).

This means that with minimal effort, you can move in, rent privately or sell the property as you wish.


Click here to register or call 133 DHA (133 342) to speak with a sales consultant today.


Next - Financing your DHA property



Attention: This guide is intended to provide general information only. All references to the lease are in accordance with DHA Lease Agreement Edition 6b. Investment is subject to DHA’s lease terms and conditions of sale. Investors retain some responsibilities and risks. Prospective investors should seek independent advice. DHA does not accept responsibility for any inaccuracy or actions taken in reliance upon this information.
*. Rent may be subject to abatement in limited circumstances.
** Subject to each financial institution’s assessment of individual circumstances.
***Subject to the duration of the lease term and the obligations of a Body Corporate.