In accordance with the DHA Lease Agreement, each year DHA
engages an independent registered market valuer to review your
property’s rent to market value. The methodology adopted by valuers is
in accordance with the Australian Property Institute’s direct comparison
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.