Real estate remains one of the most appealing paths to long-term wealth for many Australians, but the dream of property investment often comes with hidden headaches.
From the financial strain of maintenance and unexpected repairs to the stress of managing unreliable tenants or dealing with extended vacancy periods, the risks can quickly outweigh the rewards.
Amid these challenges, Defence Housing Australia (DHA)—which rents quality properties directly from investors to house Defence members and their families—offers an alternative: a government-tenanted model that delivers stable rental income, a range of property care* services, and long-term peace of mind.
According to DHA’s Executive General Manager Property, Shane West, DHA’s property investment model is among the most secure and convenient property investment opportunities in the country.
“When you invest with DHA you benefit from having a secure, long-term government tenant paying guaranteed market value rent^ for the duration of your lease” West says.
The model is also effective at easing the financial stress caused by unexpected costs.
"DHA manages over 17,000 properties to house Defence personnel and their families, with about two-thirds owned by investors,” West says.
“Our model offers a reliable tenant, guaranteed rent^, vacancy management, and most non-structural repairs*, making DHA a great option for property owners seeking an investment solution with less stress.”
Property investment with a government tenant means owners have more peace of mind. Picture: DHA
Secure returns, minimal investor risk
Government-leased real estate investments are often viewed as a safe harbour in uncertain economic times, providing the kind of stability that private market alternatives may not guarantee.
For investors looking to reduce exposure to risks like loss of rent, tenant turnover, or unpredictable repair costs, these models offer a level of assurance.
As a government business enterprise, DHA alleviates many of the typical pain points in property investment offering stable long-term leases with guaranteed rental income^ even when a property is vacant, managing the occupant and inspections, as well as a comprehensive range of property care* services.
This includes organising and covering the cost of some repairs and the replacement of fixed appliances as needed.
If the property is between tenancies, DHA will also undertake general grounds maintenance, water gardens, prune trees, mow lawns, and collect mail to ensure the property remains in good condition and appears occupied.
This unique management approach makes DHA an attractive choice for investors seeking a more predictable and less time-consuming real estate experience.
Senior economist at REA Group, Anne Flaherty, says it’s the built-in safety net that makes this model so appealing to cautious investors.
“We know that investors have different levels of risk tolerance when it comes to the kinds of investments they make.
“One of the advantages in a situation like this is that investors have much more confidence in their future income stream,” Flaherty says.
“When the government is your tenant, it provides that higher level of confidence that those investors are going to get that rental income that they've had in mind when they actually made that investment.”
With 17,000 properties managed by DHA, plenty of investors have already made the move. Picture: DHA
Ownership with less stress and guaranteed^ rental income
Investing through DHA offers a fundamentally different experience to traditional property ownership.
Leased properties are managed through DHA’s Property Care* Contract, where rent is paid monthly in advance even when a property is vacant, removing the uncertainty of missed payments or prolonged vacancies.
“Our exclusive Property Care* Contract provides unique benefits and includes most non-structural repairs*, such as fixing a leaky tap or repairing or replacing a broken oven,” West says.
Independent analysis conducted by Oxford Economics found that in most cases, investment property owners save money leasing their property to DHA.
In their “most likely” cost modelling scenario, investors leasing a house to DHA can save up to 12.7% per annum, while investors leasing an apartment to DHA can save up to 9.3%.
While DHA’s 16.5% service fee for free-standing houses might initially seem high compared to typical real estate management fees between 6% and 10%, Oxford Economics’ findings show that when all inclusions are accounted for, such as DHA’s property care* services and vacancy management, the DHA model offers competitive value, savings and long-term peace of mind.
"Unexpected costs can be quite stressful for property investors,” West says.
“Investing with DHA provides a greater level of certainty as we guarantee to pay rent while the property is habitable, cover the cost of most non-structural repairs* and manage occupants throughout the lease term.”
More than just a financial asset, the property also serves a greater purpose by providing safe, quality homes for Australia’s Defence families.
With data-backed strategies, property investment doesn't have to be a headache. Picture: DHA
Smart strategies for property investors
Navigating the property investment landscape requires careful planning, clear goals and a strong understanding of the risks and rewards involved.
The government-leased model offered by DHA presents a compelling option for those seeking security, reliability and less day-to-day involvement.
Investors are encouraged to compare all options, factoring in not just returns but also time, cost and effort, to make well-informed decisions that align with their financial and lifestyle goals. Investors should always seek appropriate independent advice before making any investment decisions with DHA.
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