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August 28, 2023

The Essential Guide to Specialist Disability Accommodation Investment and NDIS Property Management

Investing in NDIS Specialist Disability Accommodation (SDA) has the potential to be an incredibly rewarding endeavour. However, with specialist disability accommodation ownership comes specialist requirements as outlined by the SDA rules. One such requirement is to engage a registered SDA property management service.

We are pleased to present our essential SDA investment and NDIS property management guide.

What is an SDA property?

Specialist Disability Accommodation was one of the revolutionary outcomes of the National Disability Insurance Scheme (NDIS), and are purpose-built homes that provide the necessary provision to support Australians with disability. SDA dwellings are built across four different design categories and are designed specifically to support NDIS participants with extreme functional impairment and very high support needs.

Under the SDA scheme, eligible participants receive SDA funding as part of their NDIS plan to help cover the cost of building and maintaining an SDA property for the owner.

SDA properties typically offer multiple rooms, meaning multiple NDIS participants can occupy the home. Each participant rents the home under a separate tenant agreement, making SDA a multi-income investment opportunity for benevolent property investors.

Why do I need to utilise a specialised SDA property management service?

Offered under the NDIS scheme means that SDA properties must comply with NDIS regulations. There are a set of SDA rules that must be adhered to. These rules govern everything from the design of the SDA property right through to ensuring that all tradespeople that enter the property are registered SDA service providers. For this reason, one of the requirements of specialist disability accommodation is that they must be managed by a specialist property management firm equipped with the knowledge and resources to ensure compliance with SDA and NDIS requirements.

What’s involved with property management for NDIS homes?

As an SDA investor, you are required to enrol your SDA dwelling via a registered SDA provider before SDA participants can live there. Typically, specialist property management firms act as the registered SDA provider for landlords, potentially alleviating some of the challenges of SDA property ownership.

NDIS portal registration

Your property management team can handle NDIS portal registration on your behalf, including submitting and handling your quarterly payment.

Annual reporting

Annual reporting, inspections, and compliance obligations mandated by the NDIS to maintain property enrolment are overseen by the SDA property management team.

Tenancy agreements

Individual rental payments from property participants are managed and received by the property management team. This reduces your administrative burden and can help you manage the ongoing compliance requirements of your SDA home.

Receiving SDA payments on your behalf

The property management team often act as the recipient for NDIS payments, including SDA payments and the participant’s reasonable rent contribution, which may help you manage your rental income and cash flow and negate holding periods, meaning that you can sell the property if needed.

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Accessing the guidance you need when investing in NDIS properties

Investing in an SDA property has the potential to significantly enhance the life of an Australian (or Australians) living with disability. Having a suitably qualified property manager in your corner is not only a requirement of owning SDA properties but can provide many benefits to you as an investor.

Similarly, having NDIS investment professionals in your corner when starting your SDA property investment journey can be equally beneficial. To access industry professionals who can help you every step of the way, contact the personable team at Apollo Investment.

Get in touch with our team for more information now.

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