Defense Housing Australia (DHA)....

Hi Guys, does anyone has any experience renting to DHA?

I am considering this option.

Please share your thoughts and opinions.

Thanks.

 

I've looked into it, but decided against it.
The security is good, but they charge high management fees apparently.

 

I also thought that but even though they are charging 16.5% which is nuch higher than standard PM. You still be earning more as their rent is higher than what you can get from PM.

Also they maintain the place too which is to higher standards than usuall.

I have bought the IP with tenants without any lease , they are in Montg to mo th basis. If I decided to go with DHA then I have to give them 60.days notice too.

But all this based on what DHA offeres me.

 

I have no clients with DHA properties, but there used to be issues with finance as some lenders did not like them. I believe this was due to the long leases and a limited resale market because of this.

 

Does your property meet all the DHA requirements?

 

Sometimes you pay more, so a resale may be better than a new build through the lottery system. But you will have no vacancy or tenant issues ever. And they refurb at the end of the lease.

Friends who are ex military say the property managers were worse than the line officers - regular thorough inspections and salaries docked for damage.

It will come down to whether you have a long term ( two decade ) view, and your risk profile.

 

@Bigmaan has some experience with DHA.

 

That is really high.
You would think it would be less work than a normal rental for them as well.

 

I have previously managed some properties which I leased to service personnel - no issues with payments, arrears issues, noise/behaviour complaints - best tenants that I have managed imho.

 

I am have been told that the higher monthly commission includes all repairs so that is all you pay. And no vacancies. Also property is fully repainted and recarpeted at the end of the lease.
Marg

 

Still sounds like really high fees doesn't it?

 

You have to factor in all costs that are included. No vacancies, no letting or re-letting fees, no sudden bill for a new HWS etc. Not sure if you would need landlord insurance.

I've never owned DHA properties, but know others who have enjoyed the fact that they knew exactly how much the property would cost each year.
Marg

 

DHA , yet to do their inspection.

 

Sounds reasonable

Can someonce get some averages for tt 5 year of repairs, vacancies, lease costs, etc etc

16 sounds ok id be guessing

 

For me if they can offer more rent than normal PM offers and charge that, i think I still be getting more than what I could have get from standard rental.

On top of that , i know they will keep the property in tip top condition

 

I'm going to take a punt and say 7% pm with costs vs 16% dha, there'd be 3% premium using dha

 

Are they very picky with the areas they lease from? Near proximity to a base?
I like the sound of this.

 

Long term term leases, very high management fees.

Obviously works for many investors given they dont sell for fire sale prices.

 

There would have to be some limits to that, surely.
Not everything would be classified as a repair?

 

Excluding (not limited to) : Termite stuff, building stuff (Eg: Retaining wall, roof, carpet damage due to water leaks)
Tenant protection is not needed but building & content insurances are needed.
If you can BUY IT RIGHT then their PM fees are well worth it ( I did the calculations).