Your Obligations

To comply with the NRAS Scheme you must offer your property to tenants at a rent rate 20% (25% for some providers) below the prevailing market rent for the property. In years 1, 4 & 7 an independent valuer must determine the market rent for the property and you re-set your rent at a discount to that valuation. This rental discount is far out weighed by the annual tax free subsidy.

You must rent your property to tenants whose earnings lie within an income range set by the Federal Government. The current income limits are $44,128 for a single person and $61,006 for a couple and up to $104,913 for a family. These levels rise with CPI each year. Tenants must earn less than the limit when they take up the property but can exceed it for 24 months by as much as 25% without having to vacate. Our analysis suggests these are your normal tenants for rental properties. This is NOT WELFARE HOUSING. Your PRDnationwide Property Manager will only allow tenants who have excellent references, excellent rental history and can prove they can afford the rent.

Tenants will seek longer leases than usual. Once a tenant qualifies for a property at a 20% rental discount they don't want to move. We expect many NRAS tenants to stay in a property for an extended period. This is a major advantage to you as you get to keep good tenants for longer, your property is vacant less often and you pay less in Letting Fees over the life of the NRAS Scheme.

Each year we complete a Compliance Review on your behalf, proving that you have met your obligations for the year, before the Government will pay your tax free subsidy. If you fail to comply (ie your rent was above the level required or your tenant failed the earnings test) then you will not be paid your NRAS Subsidy for the year in which you failed to comply. It is important to ensure your Property Manager is experienced with the NRAS Scheme. PRDnationwide are an approved NRAS housing provider (see One Stop Shop for details).