This is a follow-up to my previous article “DHA Rent Review – How do you figure?”
Adelaide Property
Just received the secondary rental evaluation for my Defense Housing Authority (DHA) property in Golden Grove, South Australia. Valuation came in $20 higher than the DHA valuation. I hired Propell National Valuers and they determined the market rent to be $385 per week; DHA said the market is only $365.
The valuation cost me $250; which is a discount from the normal price. The reason I got a discount is because Propell did the valuation last year and therefore the current valuation is just an update. I certainly appreciate them knocking off a few dollars! Thanks Propell.
I reckon the $250 is well spent. The extra $20 a week means an extra $1,000 + in rent this year. This is a nice return on my $250 investment. And, like I said in my previous article, it’s important to keep the rents at market value. Otherwise, if left too low for too long, it can become difficult to raise the rent back where it belongs – especially if you have the same tenant. Again, people don’t like and/or appreciate big jumps in rent.
I’m not sure how the secondary rental review works, but my experience last year is the DHA will go with this updated valuation. I hope that’s what they do again this year. I sent them the report yesterday; so, they should be reviewing it shortly.
Waiting on Word from Brisbane!
Now, I’m awaiting the results of the Brisbane property. I’m somewhat anxious to see this secondary valuation as I believe the DHA valuation is very low. But, I may be surprised; the DHA valuation may be spot on. We’ll see.
Luckily, this property was not severely affected by the flooding. We did experience some water damage due to inadequate drainage. Repairs only called for cleaning the carpets in two bedrooms where water back-flowed into the house. Now I’m awaiting quotes to upgrade the drainage system and stop this back-flow problem from happening again. I’m very thankful the damage was minimal.
Click here to read continuation of the story: “DHA Rent Reveiw – Not Even Close!”