Is it possible to change PM of NRAS?

Sorry gents....what's the problem? Where's the ouch?

You are receiving over eleven thousand tax free dollars worth of tax credits each year, for ten years, and doing none of the extremely cumbersome compliance work. You have agreed to meet certain obligations in order to receive that tax free money

Those obligations are to

rent the property at least 20% below market rent
rent the property to an eligible tenant (income based test is applied)
rent the property for at least 39 weeks of the year - 91 days ( 13 weeks of vacancy is allowed)

if you do those 3 things, you are eligible to receive the full tax credit from the Federal and State Governments

You know before you buy, who the NRAS consortium is...what their fees are... etc. If you dont like the terms - no one is forcing you to buy. But if you do decide to buy, because you want the benefits that 10 years of tax free benefits brings; because you like the fact you are paid 100% of the years eligibility even if you only rent the property for 39 weeks of the year; and they proceed to do nothing wrong , why should you be able to change PM or AP? In other words, as long as you are getting your money... whats the problem?

If they do something wrong you are able to change. Its about as fair and reasonable as something can be. Try negotiating any of that into a standard resi or commercial arrangement...

 

Granted, as an investor no one is holding a gun to your head to make you sign a contract however as a holder of four NRAS properties I can attest that there are certain shortfalls in the way NRAS has been rolled out one of which is the inability to change PM's.

Poor performance or incompetence does not necessarily mean the PM has done anything wrong yet the outcomes can be just as damaging to the investors return and peace of mind.

Your blasé attitude that whatever happens it's all good because the investor is getting tax breaks for 10 years doesn't address loses inflicted by a poorly performing PM.

 

I reckon I know more about NRAS than the average bear, and I’m anything but blasé about it. Quite the opposite . Maybe it’s because I have deployed NRAS very differently to what you may have experienced. I avoided the mass marketed NRAS being sold by every other man and his dog., where I had no control. Instead , I controlled the incentives, transferred them onto product that was mine exclusively , available nowhere else , and always sold at or below market value (as my valuation record attests to) - oh, and I also appointed the tenancy managers most of the time.

So after 5 years, I rarely get any negative feedback about tenancy management , because if I do - I make a call and it gets fixed fast...or they lose the gig. I had some issues with one tenancy manager in SA several years back... they didn't lift their game... so I arranged for them to be replaced - as it happened they were replaced by a forum member who I had introduced to the approved participant. He is doing the job properly. No more complaints.

I understand nothing is ever perfect - I get that. But you know what you are getting/trading off for the NRAS money, going in. That's not blase. That's the deal.

But if, as you say , you have incompetent tenancy managers , change providers . You have the ability to do that. That will enable a change of PM as well. The changes to the regulations allow you to do this quite easily nowadays. The state and fed govts are extremely accommodating of any requests to change .

If you need assistance - contact me.

 

hi all,

just checking with you all how much is the general NRAS compliance fees? and can you negotiate on those fees?

 

Depends on the provider. The model I consider the best in market , which I used for the majority of deals, is the old Questus model which is now called AAHSL. They charge 5% + GST of the NRAS, and they collect it from the NRAS payment so if they don't get you your money, they don't get theirs either. Its Mutually Assured Success

Others charge 7.5%, 8% or even 10% + GST ... and some take it as a monthly payment ..... I avoid them .... what provider are you with?