SDA Rental Management
Only an approved and licensed SDA Rental Manager can source tenants and manage your SDA Property!
When looking to invest in a SDA Property, it is imperative that not only do you get the property decision right at the outset of your investment but that you also work with a qualified team who will:
- Source a ‘best fit’ property to suit your investment objectives and requirements
- Work within your investment budget
- Select a dwelling which meets with your budget, in the right location that will attract and appeal to a wider audience of partipants
- Work with a builder who knows and understands the stringent NDIS requirements when building a SDA compliant home
- Working with care providers in the area who are making requests for certain type of homes which will meet their participants needs and who are keen to place their participants into your SDA investment property
- Work with a licensed and approved SDA Rental manager who has relationships with care providers to source tenants for you, who will manage the tenants and ensure that all compliance is in place so that you can receive your monthly income from SDA/NDIS/Tenants
Why does a Rental Manager who is working with SDA property need to be licensed?
This is a government initiative which is highly regulated and falls under the NDIS and there are a significant amount of behind the scenes requirements for you the Investor to receive your monthly income. An approved and licensed SDA Rental manager is required to submit a lot of paperwork on your behalf by accessing the NDIS portal, to ensure you receive every dollar due to you.
They also need to be fully compliant in everything SDA, SADMA and NDIS
Lastly, a SDA Rental manager is there to source tenants (participants), liaise with care providers, maintain quality relationships with both the care provider and the participants to ensure your tenants remain in your investment for as long as practical.
SDA Rental Management Fees
NB!! : This is a minefield and when there are significant Government Dollars being offered, it does attract unscrupulous industry providers after large dollars at your expense! Be warned, be truly warned!
Having said that, not all SDA approved rental managers are in it for the greed and the short-hall, they care and are growing a business from managing your investment properties and the rent role.
A SDA management license does require a significant investment and thus SDA Rental Management should be treated as a professional business, and it is in a professional SDA approved rental managers interest that they establish mutually beneficial, long term relationships with investors such as yourself.
We continue to see fees around the 10% to 15% range which is exceptionally reasonable based on the amount of behind the scenes work and compliance they have to undertake and to undertake on your behalf. If you begrudge a professional SDA rental manager these types of fees, then this investment is not for you and your greed will see you pay higher fees to someone else who is over promising and under delivering. Meaning if you want to receive yields of 12% to around 16% per annum on your investment, allow others to participate and earn their keep through the hard work they will be doing to ensure you get your deserved yields. Is this fair or fair?
NB! If you are quoted around 10% fees to manage your property; be very wary as to what other and what annual fees you will be charged!! At 10% fees, that SDA Rental management firm is not making a profit, there is way too much compliance work to profit at 10% … so they include other fees under other titles to make up and profit over and above if they just charged you a market related 15% management fee. You have been warned!
Be very wary of NDIS Rental Guarantees, see explanation why here
Do all SDA rental managers offer the same service and support and how do you choose which one to use?
As this is a relatively new sector there is still a lot of learning going on and as mentioned above some managers in it for the greed, getting you to use your own money (or take a significant loan), to have a property built for you and then to share in the yields. Run a mile if a SDA manager is wanting to charge you unusually high upfront costs to find you tenants or is taking a significant amount of the funding the government is incentivising you with. These managers are using you to fill their pockets whilst you take on most the risk with your own $’s.
Find and work with a group like ours who offer an end to end service from finding out who you are, what you are wanting to achieve, selecting and recommending property to best fit, to having the dwelling built and applying for the compliance certificate on your behalf through to sourcing and managing your tenants professionally on your behalf.
Trying to go it alone will cost you way more than our end to end solution will make you, there is more than enough in the investment opportunity for all to benefit. SDA property is a win-win-win for all involved. We will save you time and help you make more money.
This is a win for people with disability, this is a major win for you the investor whose dollars are being invested to provide homes for people with disability, this is a win for government and tax payers who will save significant dollars having a participant in your dwelling as opposed to housing them in the system and this is a small win for your approved SDA rental manager.
What would you do with an extra $14,000 dollars in your pocket a year??
Names changed for anonymity
SDA Rental Manager ABC only has an 8.8% advertised management fee, however when one digs deeper you will find a 10 year Head Lease Agreement (not advisable to sign) plus several other fees – when added up come to over 20% per annum. Where as company RST has a flat 15% annual fee.
Over 10 years this equates to around $142,263 in extra fees unnecessarily paid to ABC.
This table demonstrates the financial difference and implications. How much more can you improve your life and your families life by if you had an extra $14,000 in after tax dollars in your pocket? Then multiply it over 10 years then over 20 years … the numbers are staggering.
$14,000 invested at 5% over 10 years = $198,895
$14,000 invested at 5% over 10 years = $500,069
Are you aware of the financial implication if you had this extra $14.000 in your own pocket and invested it at say 5% per annum?
How many Positive Impacts on your life and your next and next generations life would an extra half a million dollars make …. rather in your pocket you would agree when you look at the implications this way you would agree?
