An approved NRAS Property can only exist on properties that satisfy the assessment
criteria and are approved under NRAS. These properties are generally selected and
made available through various property developers and Real Estate agents to Investors
which the Manager has applied for and been granted the appropriate approval as an
Approved NRAS Property under NRAS.
Investors only select those properties that have been approved by NRAS as Approved
NRAS Properties and agree to the terms and conditions to be able to access the Government
Incentives available through NRAS.
MANAGEMENT & RENTING
To ensure compliance with NRAS insofar as it relates to the proposed tenants satisfying
the definition of Eligible Tenant under NRAS, the Manager will assist in identifying
suitable Property and Tenancy Management Services providers. Wherever possible,
the Manager will give preference to not for profit organisations.
The property and tenancy management service provider will be responsible for:
- ensuring compliance with the relevant residential tenancies legislation of each
State or Territory;
- assess initial and ongoing tenant eligibility and hold appropriate documentary evidence
of those assessments;
- manage determination of Market Value Rent for the properties and the rent to be
charged to tenants;
- provide appropriate property management and maintenance functions; manage the
ongoing tenancy; and
- report on compliance regarding the tenant eligibility and rent levels
ELIGIBLE TENANT
The Approved NRAS Property must be rented to Eligible Tenants who are considered
to be low and moderate income households. Income limits for tenant eligibility and
upper limits for maintaining eligibility are:
|
HOUSHOLD TYPE
|
INCOME LIME ($)
|
UPPER INCOME LIMIT
|
|
INITIAL ELIGIBITLY
|
MAINTAING ELIGIBILITY
|
|
Single person with no children
|
40,501
|
50,626
|
|
Couples, couples with 1 child, or sole parents with 1 child
|
55,991
|
69,989
|
|
Couples or sole parents with 2 children
|
69,423
|
86,779
|
|
Couples or sole parents with 3 or most children
|
82,855
|
103,569
|
The above amounts are based on gross income and will be updated by the Minister
to reflect increasing living costs on a regular basis.
To maintain eligibility as an Eligible Tenant the tenants’ income can increase above
the initial income limit by 25%. In the event that the income exceeds the upper
limit in two consecutive years then a tenant ceases to be an Eligible Tenant.
MARKET VALUE RENT
a) a) Rental of Dwellings
In order to comply with NRAS regulations an Approved NRAS Property must be rented
out for no more than 80% of the current Market Value Rent.
If rent for an Approved NRAS Property under NRAS is not at least 20% below the Market
Value Rent for that Approved NRAS Property, the Government Incentive payments from
the Federal, State and Territory Governments may not be paid.
b) a) Market Value Rent
The Manager is required to comply with prescribed methods for determining the Market
Value Rent and must notify the Minister of the Market Value Rent.
The Manager will assist investors to engage registered valuers to provide a written
valuation on the Market Value Rent.
The rent may be reviewed for an Approved NRAS Property:
- upon entering a new lease with a tenant; or
- for an existing lease, every
12 months from the date of commencement of the lease.
Under NRAS, a formal independent valuation is required in years 1, 4 and 7 of the
life of the Approved NRAS Property. In years 2, 3, 5, 6, 8, 9 and 10 an informal
‘desktop’ valuation will be sufficient.
Any increase in rent must be based on information about the location, type and amenity
of the approved rental and supported by publicly available data about comparative
rental rates in the locale of the dwelling, other than data relating to other dwellings
operated by the approved participant. Also any increase in rent can not exceed the
percentage change of the NRAS market index.
|