This is a continuation of my previous article “DHA Rent Review – Update.“
Just received the secondary valuation on our property in Enoggera, Qld. The The results are much different from the Defense Housing Authority (DHA) rental review.
DHA valuation came in at $420 per week; the secondary valuation – $480 per week. How could the results be so far off? A spread of $60 a week! Which one is right?
But, the results from the secondary review do not surprise me; it’s the DHA result that causes me concern. Here’s why. The initial DHA rental evaluation report came to the conclusion that the rent should stay the same; $420 per week. So, the 2011 rent would be the same as 2010. Not exciting, but I could live with it.
But, as a part of my “due dilligence”, I figured, why not do some preliminary investigation to see if this rental assessment makes sense. So, I did some “clicking around” on the internet.
I went to realestate.com.au and started looking for rental accommodation in the Enoggera (Gaythorne), Qld area. Looking for homes with 4 bedrooms, 2 bath, 2 car lock-up garage.
I’m glad I went looking. I couldn’t find anything under about $500 a week! And, most were much more!
That’s when I made the decision to hire Propell Valuers to do a secondary valuation. The result the DHA came back with seemed very inappropriate; very low.
Now, my perception has been verified. The secondary valuation – based on similar properties in the area – has come back with a much healthier figure; $60 a week healthier.
I normally don’t invoke a secondary review, but I believe I’ll make it an annual event. It seems like the DHA valuations are not in line with the market for some reason. I not asking for anything above market rent, but, just the same, I don’t expect to get less; certainly not way less.
I shutter to think about going a whole year leasing my property to the DHA for $60 a week less than market rent.
Now, for the embarrassing question, why didn’t DHA come up with a more reasonable market rent value? If they had come back with $440 or $450 a week, I probably would have gone with it.
The process continues as the DHA will now consult with their valuer to discuss the final outcome; what the rent will be for 2011. I’m hoping they do what they did last year (I had one property reviewed last year); DHA just went with the secondary valuation result.
That would be nice. We’ll see.
Story continues … DHA Rent Review: A Goldilocks Deal
Thanks Dave for sharing this.
I owe an DHA property at Carlingford in Sydney. And the first rent review from DHA came in at $520/w. I went to realestate.com.au and found out that most of the similar
properties are higher…..
The DHA valuation used 4 “comparables”. 3 out of 4 “comparables” are much older properties than my property built in 2006. While there are so many similar non-DHA properties in Carlingford that can be used as comparables, the only superior property used in the report is even out of the area!!
I have invoked a secondary review process by another independent valuer and see how it is going…
I know the feeling. My rent reviews for this year were about as satisfying as an income tax refund! I did some checking on realestate.com.au as well and definitely expected my DHA rents to rise. No go. The DHA eval came back saying rents to stay the same. I contacted my valuers in Brisbane and Adelaide and they both felt the DHA got it right, so I didn’t bother going through with a secondary eval this year. But, my Adelaide DHA property lease ends in Oct, so I’m seriously considering taking it back and leasing through a commercial agent and getting the rent up from its current $385 to over $400 where I feel it should be. We’ll see.
Thanks Dave.
I have heard from DHA – very disappointing. My second rent review (12-page report) came in at $545/w based on the solid comparison with similar properties in the same area, noting that the first review done by DHA nominated valuers was only an one page summary…
DHA rejected the second review and concluded the rent as $535. Frankly I think the result is not convincing and supported by the rental evidence. I have sent a letter demanding explanation. Lets see..
Findings already sent off. Now, just waiting on outcome; final rent decision.
OOOOOOOOOOOOOOH! The plot thickens! Are u really going to present your findings to the DHA?