A new market is emerging for innovative property managers. Government will support those with a disability to rent custom made accessible apartments. It however will require high standards of asset management and good cooperative skills.
Why should a property manager look at getting a slice of the disability pie? Two simple reasons; rent is guaranteed, therefore no need to chase arears; and secondly, tenants are long term. It may also serve to boost your sales figures.
If you want to get involved, you will need a developer who is willing to make a percentage of its properties accessible. You will either have to sell those properties to investors or work with an agent who has a market for these investors.
On the other side, you will need a relationship with an NDIS provider who specialises in placing and caring for those who are appropriate for independent living.
How does it work:
- The developer will build the accessible apartments;
- The asset manager, will prepare a ten-year lease that will be attached to the Contract of Sale;
- The purchaser will execute a Contract and a lease to the asset manager;
- The asset manager will tenant the property with the tenant appointed by the NDIS provider;
- The government will pay the provider on a monthly basis who will pay the agent.
Tenancy agreements are usually ten years and the return to the investor is 5%. This is a set and forget type of investment.
This is not for everyone, but it is an excellent and safe business model.
Leverage will be conducting a 2-hour CPD session on NDIS housing on 3 December 2020.