Are DHA Rents below value?

[Xenia IM]

Can someone offer some clarity here?

I'm appraising some properties for a new client. She owns some defense housing properties and will now be putting them on the "normal" rental market.

My rent appraisals are coming in at around 10% - 15% higher than what the DHA rents were on these properties.

I'm usually pretty much on the mark with appraisals normally.
I have no experience with defence housing or how they work or how they determine rental value - but their rental history seems to be below market value - at least according to my appraisals.

Are they under - rented to offset the guaranteed no vacancy rental periods that they offer?
Does anyone know how they work?

 

[geoffw]

It's been a while since I had mine with DHA. But at one stage when I thought the rental appraisal was too low, I gathered evidence of comparable properties with higher rents, which DHA accepted, and raised the rent. One comparable was almost identical, next door.

 

[marg4000]

Friend owned a DHA property.

Rents were adjusted periodically to reflect the current market. Rents could go down as well as up.

The discrepancy you note could be because of the time since the last reappraisal.
Marg.

 

[Xenia IM]

You are right marg - I just checked with the client and a review had not been done in over a year! - that explains it.

Thanks