Why DHA Leased Properties Are Worth a Look

If your clients are looking for secure, stable income in the Australian property market, then DHA-leased properties are worth serious consideration.

We’ve seen strong interest from time-poor professionals, SMSFs, and overseas buyers who want the long-term certainty that comes with government-backed tenants and low day-to-day management.

Important note: We are not DHA. We work with properties that have an existing DHA lease or an Offer to Lease in place. The following is our interpretation and summary of how the model works. All buyers must do their own due diligence and seek independent advice.

🔒 Government-Backed Lease

Here’s the key benefit that appeals to most investors: your lease is with the government (DHA), not an individual tenant.

That means:

• Rent is paid monthly in advance

• You receive rent even when the property is vacant

• No re-letting or advertising fees

• Rent is reviewed annually by independent valuers

If you value cash flow certainty, this model is hard to beat.

🛠 Hands-Off Property Care

One of the standout features of DHA leasing is their Property Care Contract, which includes:

• Most non-structural repairs and fixed appliance replacements

• Vacancy management, including maintaining lawns and gardens

• Routine inspections, tenant move-ins and move-outs

• Emergency repair coordination

• End-of-lease clean and handover in neat, working condition

This is included in DHA’s flat service fee, deducted from the rent — 16.5% for freestanding homes or 13.0% if under a body corporate.

While this is higher than a traditional agent fee, the all-in service often results in lower net cost once you factor in time, trades, and vacancy risk.

🗓️ Long-Term Lease Options

Lease terms typically range from 3 to 12 years, with DHA able to extend once by:

• Up to 36 months, and

• Up to 12 months (at their discretion)

You can sell your property at any time — this is called a mid-lease sale — but the DHA lease and Property Care Contract must remain in place.

At lease end, you can:

• Renew the lease (if DHA still needs the property), or

• Take back the property (professionally cleaned, maintained, and with working appliances)

📍 Where DHA Is Actively Leasing

As of June 2025, DHA is prioritising investment properties in:

• Brisbane, QLD

• Perth, WA

• Sydney, NSW

• Wagga Wagga, NSW

They also accept properties in Melbourne, Adelaide, Canberra, Townsville, and more — as long as they’re within 30km of a Defence base.

DHA evaluates each property based on location, proximity to amenities and Defence bases, and quality of construction/inclusions.

💼 Who This Suits

We see DHA-leased investments working particularly well for:

• Busy professionals looking for a set-and-forget asset

• Self-managed super funds (SMSFs) who value consistency and minimal effort

• Cautious investors wanting less exposure to vacancy and arrears risk or global uncertainty
  

💰 Example Return (Indicative Only)

Metric	Example
Purchase Price	$700,000
Gross Rent	$31,000/year
DHA Service Fee (16.5%)	$5,115
Other Costs	~$6,000 (rates, insurance, etc.)
Net Income	~$19,885
Net Yield	~2.84% p.a.

This is a simplified example. Actual figures will vary depending on property type, location, and personal tax setup.

Want to Learn More?

If you’re interested in seeing DHA-approved properties currently available, or want help understanding the process, reach out to our team. We’re happy to walk through available opportunities and connect you with the right professionals to support your decision. 📎 Disclaimer

This article has been prepared by an independent third party and does not represent Defence Housing Australia (DHA). DHA is not the vendor of any property and makes no representation about the land, builder, or construction. Investment in a DHA property is subject to the Lease Agreement and Property Care Contract. Rent is only guaranteed if the property is habitable. Always seek independent financial, legal and tax advice before investing. To learn more about DHA leasing, visit dha.gov.au/investing