DHA’s leasing program is constantly evolving to deliver the best results for our landlords and the Defence members living in our homes. Our Myth Buster Series aims to clarify any potential myths you may have heard about investing with DHA and provide accurate information.
Myth: When you lease to DHA, you lose control of your property.
Fact: You retain full ownership and all landlord rights, while benefiting from a reliable tenant, guaranteed1 rent and most non-structural repairs included.
Handing the keys to any tenant can feel like a leap of faith. Committing to a longer lease term can feel even more daunting. If you’re a hands-on landlord who likes to stay closely involved in day-to-day decisions, leasing to Defence Housing Australia (DHA) may feel different. But different does not mean you lose any control over your asset.
The most important thing to understand is that DHA never owns any part of your property. You are always the legal owner and DHA simply acts as both tenant and service provider for your property. The rights you hold as an investor under a DHA lease are the same rights you have under any standard lease in the private real estate market.
That includes the right to sell. If your circumstances change during the lease, you are free to sell your property. The lease simply transfers to the new owner – the changeover is straightforward and the rental income immediately switches across to them. You can also raise finance against the property at any time.
What does change under a DHA lease is who handles the day-to-day running of the property. As the tenant and service provider, DHA sub-leases your property to a Defence member, pays the rent whether the property is occupied or not, and coordinates routine inspections. All of this is covered by our single service fee.
The service fee also includes our Property Care arrangements which means DHA also covers the cost of most non-structural repairs.² Typically, we will automatically organise the repairs and keep you informed when a decision genuinely needs your input. Major structural works remain your responsibility as they are under any lease arrangement.
Making changes to your property
Investors sometimes wonder whether they can make upgrades or improvements during the lease. In most cases, the answer is yes. DHA is willing to work with landlords and to discuss any proposed changes to make sure they are suitable for our Defence member occupants. Some modifications may need additional consideration given the nature of our tenancy arrangements, but we try to accommodate where we can.
DHA generally offer leases for 3, 6, 9, or 12 years – giving you the security of a long-term income stream. More than 12,0003 investors across Australia choose to lease their properties to us and many have done so for well over a decade already.
We provide peace of mind knowing you can access your property information, including lease details, financial statements and maintenance updates, at any time through our online investor portal. This means you always have your finger on the pulse minus the stress and inconvenience of having to manage the property day-to-day.
Find out how DHA can work for you. Speak to our Investor Support team on 133 342 (Option 2) 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. A comprehensive description of repairs included in our service and exclusions can be found in the Property Care Contract. For more information, visit dha.gov.au/investing/property-care.
3. As at June 2022
Upcoming events
