Using your SDA investment property to provide short-term accommodation
Explore how leveraging your SDA investment property for short-term accommodation can provide an additional source of income, offering a buffer during vacant periods. Although short-term stays may not receive government SDA payments, we shed light on the possibility of using them as a strategic cash flow protection measure, while contributing to accessible tourism.
What is Short Term Accommodation (STA) under the NDIS?
NDIS funding helps cover the costs of short-term accommodation for participants looking for a short break. The funding helps to cover accommodation, personal care, food, and any approved required specialist services.
Participants can access up to 28 days of short-term accommodation each calendar year, with the flexibility to choose the duration of each stay — whether it’s 3 days at a time, or all 28 days at once.
STAs offer diverse advantages, including:
Enabling the participant's caregiver to take a brief respite from their caregiving responsibilities.
Facilitating the participant in exploring new activities, acquiring fresh skills, or establishing new friendships.
Providing temporary support during periods when the regular support network is temporarily unavailable.
Increased rental return — for long-term and short-term
One of the main appeals of SDA properties lies in the SDA payments. In an effort to enhance the availability of SDA homes, the Australian Government introduced SDA funding through the National Disability Insurance Scheme. This funding is designed to offer investors an extended period of elevated rental income for 20 years, serving as a motivation to stimulate growth in the SDA market.
While short-term accommodation does not come with SDA payments from the government, it could be used as a backup strategy for cash flow protection through periods of vacancy. For example, if you happen to have a vacant room for an extended period of time, you might choose to rent the room out as short-term accommodation.
The NDIS funds up to 28 days allowance for participants to use short-term accommodation, so it is generally accepted and expected that specialist accommodation will cost more than an ordinary property. While the SDA payments aren’t included for short-term stays, the rental income can still be higher than that of a regular property.
Short-term accommodation can be considered during periods of vacancy, after the 20-year SDA payment period, or as an alternative strategy to long-term specialist disability accommodation.
Be a part of accessible tourism
Many “typical” vacation homes are designed for both comfort and practical living — this is no different for accessible homes. Accessible vacation homes have everything required for a cozy stay — roomy spaces, all the basics like Wi-Fi and air conditioning, lights that are easy to reach, wide doors, and bathrooms with handrails. With your SDA property being built with accessibility in mind, it already has everything required for accessible tourism.
If you’re interested in listing your property as a short-term accommodation option, there are various websites to do so:
Accessible Accommodation is an Australian website offering an extensive listing of accessible properties for short to medium-term accommodation.
Exploring the utilisation of your SDA investment property for short-term accommodation may present a promising avenue for additional income, contributing to a more inclusive and accessible hospitality landscape.