DHA’s leasing program has been designed to deliver security and peace of mind for our landlords, and the Defence members living in the homes. Our Myth Buster Series aims to clarify any potential myths you may have heard about investing with DHA and provide accurate information.
Myth: DHA only leases properties right next to Defence bases.
Fact: Proximity to a serviced Defence base is only one factor we consider when agreeing to lease.
Ask a Defence member what they want from a home and the answer sounds familiar. Good schools if they have children. Somewhere decent to eat. Parks, convenient shopping and an easy commute to work.
DHA is responsible for making sure the right housing supply is available to meet the needs of Defence members and their families, the Department of Defence and those assisting Defence. Distance from a serviced Defence base is only one consideration when it comes to the properties we take on.
DHA manages more than 17,000 properties across Australia. Even if your property is close to a base, well-located and well-presented, we may already have sufficient supply in that area.
The 30-kilometre boundary
DHA leases properties within 30 kilometres of serviced Defence bases, although not every base is one we provision. In most major cities that distance covers a broad range of locations and housing styles, from inner-city apartments for single personnel and couples, to family homes in established suburbs. In regional centres it can cover most of the town.
Our job is to provide properties that meet the needs and preferences of Defence members today, while planning for future demand. Thirty kilometres is the outer boundary, but distance alone does not guarantee your property will be eligible for a DHA lease.
The layout and presentation of the home are also important and DHA has specific requirements around the number and type of rooms, quality of fittings and finish, carparking and amenity suitable for its occupants. View the list of property requirements.
What this means for your investment
If we do not deem your property eligible for a lease, it is not a reflection of the quality or specific location of your property, but is based on our current property portfolio, Defence requirements and level of demand in the area.
The locations of DHA-leased properties have broad appeal so they are usually the same locations that are attractive for investors to rent on the private market. As a Government Business Enterprise, DHA offers the unique advantages of guaranteed1 rent, a reliable tenant, and secure, long-term lease options from 3 to 12 years. When the lease ends, you own a well-maintained property in a suburb with real market depth. And, of course, you can sell at any time2 during the lease term. Known as a mid-lease sale, the property must be sold with the existing DHA lease in place.
If you’d like to know whether your property, or a location you are considering is a good fit for us, our Investor Support team is ready to help. Call 133 342 or visit dha.gov.au/investing.
1. Rent may be subject to abatement under certain circumstances such as loss of enjoyment or amenity, or breach of lease terms. Rent is paid where the property is habitable. Should a property become uninhabitable during the term of the lease, or the lessor breaches the lease terms, the rent may cease or abate and the lease may be terminated by DHA. Guaranteed rent is subject to the terms of the lease. DHA does not take into account an investor’s objectives or financial needs. Investors should always seek appropriate independent advice before making any investment decisions with DHA.
2. Investors should consider their long-term plans and potential changes in circumstances when assessing a DHA long term lease.
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