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FAQ's and timeline

As set out in your DHA Lease Agreement, each year DHA engages an independent registered market valuer to review your property’s rent to market value.

Your property’s market rent is assessed as at 31 December 2019, based on rents achieved from comparable properties in the surrounding area, and in accordance with Australian Property Institute guidelines.

From 1 January 2020, written notification of the market valuer’s assessment and a copy of your rental certificate will be provided to you through Online Services.

If you are dissatisfied with the market valuer’s assessment, and your DHA Lease Agreement allows for you to pursue a secondary market rent valuation, you have until 10 February 2020 to complete the secondary market rent valuation process.

Timeline

Description

Date

New rent assessed

31 December 2019

Secondary market rent valuation period begins

2 January 2020

Final date to submit your independent secondary market rent valuations

10 February 2020

Frequently Asked Questions

The following is a list of frequently asked questions relating to the annual market rent review process.

About the annual market rent review

You will receive an email notification on 1 January 2020. From this date you will be able to view your rental certificate in Online Services. If you have difficulties logging into your account, please email your leased property details and your request to annual@dha.gov.au.

Your new rent will be paid from 1 January 2020.

Yes. As of 1 January 2020, your valuation certificate will be available in Online Services. You will also receive an email notification. If you have difficulties logging into your account, please email your leased property details and your request to annual@dha.gov.au.


About the market rent valuation

The market rent review of DHA property is conducted annually as at 31 December.

The valuers are asked to physically inspect the property once every three years. The valuers also have access to property details, photos and floor plans to help inform the process. The valuers also maintain field notes on each property and DHA notifies the valuer of any recent inclusions to the property (i.e. pergola or air-conditioning).

The methodology adopted by valuers is in accordance with the Australian Property Institute’s direct comparison method.

This method involves the review and comparison of ‘like properties’ in the surrounding suburbs and vicinity which have recently been confirmed as leased by local real estate agents. The ideal comparison pool of properties will involve a mix that include ‘superior’, ‘comparable’, and ‘inferior’ attributes (these labels are consistent with terminology used by the valuers).

Based on market requirements, the valuer then determines the position of your property next to the comparison properties by reviewing attributes and appeal of the property. Once the order is determined, rents are applied in a range at which the property rent can be based.

A common misconception is that the average values of the comparable properties will equate to the rental value of your property.

The properties listed on your rental certificate are provided as indicators and do not constitute the total market assessment or the total evidence base used to determine rent. The direct comparison method does not include averages or medians, as these are area-based and do not specifically reflect the property being valued.

No. The annual market rent valuation is a rental valuation only. DHA is unable to provide the capital value on your property as that is a separate service to the annual rental valuation.  

If you would like a capital valuation, you can contact the valuer who carried out the market rent valuation to arrange this request. Their details are located on your rental certificate. Please be aware they may charge a fee for this service.

This is because no two houses are the same. The valuers are aware of this and in the ranking process consider the differences between properties. This situation can also occur when the valuers are unable to find comparable properties in the same suburb. Consideration is then given to account for suburb variations. The intent is to get the most recent transaction of the most comparable properties closest to your property.

The naming of a bedroom or study does not impact the market rent valuation, as it is the size of the room that is added to the overall living area that is important. A property that is described as four bedrooms or three bedrooms/study would be valued the same as long as the other features and living area are all the same.

It is not always possible for the valuer to list all the amenities of your property in the space available on the report.

In some cases, air-conditioning will be referenced as a feature that differentiates your property from comparable properties. In other cases, air-conditioning will not be specifically referenced, as your property and the comparable properties are all air-conditioned, and therefore will not impact the rental consideration.

Please note that omission of air-conditioning in your property description does not mean that air-conditioning has not been considered.

About the secondary market rent valuation process

If you do not agree with the market valuer’s assessment, or the new rate that has been implemented, your edition of the DHA Lease Agreement may allow you to pursue a secondary market rent valuation.


If you wish to invoke your option for a secondary market rent valuation, you will need to notify DHA of your intention.

You can do so by logging into Online Services where you can click the Secondary Review Process button which will notify us of your intention.

If you cannot access Online Services please contact the DHA Valuations team via email to annual@dha.gov.au. Please include the property address and a statement of intent to progress the secondary market rent valuation process.  Alternatively, you can call us on 139 342 between 8.30am and 4.30pm AEST.

To complete the steps required for the secondary market rent valuation process, you must provide DHA with the valuation certificate carried out by a certified practicing and registered member of the Australian Property Institute in the state or territory in which your DHA leased property is located by 10 February 2019.

You have 30 days to complete the secondary market rent valuation process.

 

Important dates are noted in this table.

 

New rent assessed

 

31 December 2019

 

Secondary market rent valuation period begins

You must follow the steps outlined in the attached document, Guidelines to pursuing the secondary market rent valuation, to complete the secondary market rent valuation process.

 

 

 

2 January 2020

 

Final date to submit your independent secondary market rent valuation

 

10 February 2020




All costs associated with the secondary market rent valuation process is the lessors’ responsibility. This cost will vary on the valuer you choose. Regardless of the outcome, this cost is not refundable from DHA.

You must use a certified practicing and registered valuer with the Australian Property Institute in the state or territory where your leased property is located.

A property valuer is a registered and insured professional and can be held liable for both the process undertaken and the values determined.

Real estate agents provide a market appraisal suggesting what your property may rent for if it was managed by their office. The real estate agent is not liable for that rate being achieved or required to substantiate how it was achieved.

Note: A market appraisal from a real estate agent will not suffice for the secondary market rent valuation.

DHA cannot utilise rental appraisals as they are only intended as a guide to pricing. Appraisals are estimated by knowledge as well as recent sale prices of the local area. These should only be used as an estimation, as they are not definitive and have no legal standing.

The market rent valuation for the purpose of the secondary market rent valuation process can only be conducted by a qualified valuer.

No, you cannot submit a late secondary market rent valuation.

Due to the agreement DHA has with the Department of Defence, and in accordance with your DHA Lease Agreement, the review period is limited to 30 days.

The process then moves to the implementation stage, where there is no opportunity for further review without an alternate valuation in the system.

In order to avoid disappointment, please ensure your secondary valuation is received prior to, or on the due date.

The secondary market rent valuation review process requires the two valuers—DHA’s independent valuer and your chosen valuer—to consider and agree on the range of evidence contained in the two reports.

It should take no longer than four weeks for an outcome.

The DHA Valuations team makes every effort to ensure a rapid response where possible.

Your new rent will be effective from 1 January 2020.

Any review or adjustment will be back paid to this date regardless of when the change is agreed.

Contact us

Email: lessormanagement@dha.gov.au

Call: 139 342, option 2

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These resources are intended for information only. DHA does not accept any responsibility for any inaccuracy or actions taken in reliance upon this information. Please refer to your individual lease for full terms and conditions.