There is a lot of money to be made in providing suitable specialised housing for persons with disability. Competition amongst landlords is hotting up and NDIS participants (tenants), with SDA funding in their NDIS plan, know this and you need to be sure your property is more desirable, otherwise, your tenant may desert you.
The question we answer today is "how do I ensure my SDA property is hot"
So, your due diligence is done, and you are confident that there is sufficient unmet demand in your area, and you are now considering which block of land/villa/apartment to purchase. However, before you commit to the acquisition, there are a number of key factors that you need to consider if you want your SDA property to be hot.
Unlike the general residential property market, where the amount of rent you can charge is largely up to you, with SDA it is largely set by the NDIA, so whether you have a property that just meets the minimum standard, or whether you have invested in a palace, the rent will be pretty much the same.
What’s more, for most investors, an SDA property is a long-term proposition, so it’s not a simple matter of looking at today’s market, but also trying to project the market into the future. What will the SDA market look like in 5,10, 15 years’ time when more SDA’s are built in your area, and how do you retain your Participants, or more importantly attract new Participants should a room become vacant?
The answer may seem glib, but it’s as simple as: Put yourself in the shoes of the Participant and the Care Provider.
Whilst every Participant is different, these are some of the top considerations that will likely make your property hot both now, and in the future.
1. Friends and Family (of course)
The most common refrain from Participants is “I want to be near my friends and family”.
So how close is your property likely to be to a Participants social circle? Possibly less likely if the property was a cow paddock a year or so ago. Grab a map and draw a circle of x kms, around the property and see how many established houses are within the circle. If it’s not covered with houses, you may wish to reconsider your choice.
2. Public Transport (for carers too)
Getting around in a maxi-taxi or relying upon the Care Provider for transport is expensive and/or a hassle. So, can the Participant easily get to reliable public transport?
How about the SIL staff? It can be difficult to attract good staff and without staff you don’t have Participants. When the staff have a choice as to where they wish to work, one of the considerations may be whether it is easier to get to other properties by bus, rail etc. than it is to get to yours.
3. Infrastructure (and not just hospitals)
Access to a hospital is a given, but what about other infrastructure that makes the Participant’s life more pleasant. Coles/Woolies/Aldi, local shop for small purchases, bowls club or an RSL? How about a really nice park with concrete pathways, football oval, beach, river, public pool etc. All of these can provide for cheap or free entertainment and also gives the Participant an opportunity to get out of the house. Remember that your Participant is quite likely on a pension, so every dollar counts.
Having ready access to all of this infrastructure also makes the SIL’s life easier, not only when it comes to looking after the Participant, but also for themselves. Being able to quickly do the shopping or nip off to get a coffee from the local barista makes what is otherwise a tough (but rewarding) job just that little bit easier.
4. Safety and Security (not just security grills)
Safety and security goes beyond security grills on the windows and doors.
Are there concrete paths on either side of the road between the dwelling and Point B, or will the Participant have to use the road? Similar question applies to the steepness of the streets?
Is there ample parking for the carers, or when they finish their shift at night will they be required to walk quite some distance to get to their car? How well lit is the area? Does it feel safe?
Are the Hell’s Angels living next door?
Can an ambulance easily access the property? This question is particularly important for battle-axe blocks as well as apartments in busy areas.
5. Robust (in particular)
The biggest issue is noise, both from the Participant, leading to what’s called ‘neighbourhood fatigue’, and noise coming from the neighbours, which can trigger the Participant behaviour. Neighbours include railway lines, busy/noisy roads, schools, parks, factories etc. Basically, anything more than typical suburban noise.
The larger the block, the easier it is to manage the impact of noise, however, to some extent this can also be managed by increasing the amount of noise suppression along the property’s boundary, so a smaller block may lead to additional cost.
The other consideration is proximity to schools and public playgrounds. If you are too close to either, you may be restricting the number of Participants that may be allowed live in your dwelling. Enough said.
6. Dwelling Design (beyond the minimum)
So, you have built a 185m2 compliant HPS dwelling with one living area and a backyard with lawn and not much else. There are a few other dwellings that have been built that are similar to yours within the same area. This compact design, you have been assured, will give you the highest yield……..on paper.
At the same time another investor has built a noticeably larger HPS dwelling, thrown in a few bells and whistles, added a nice garden etc. etc.
The prospective Participants are doing the rounds and deciding where they hope to live for the rest of their lives. All other things being equal, which property do you think they are more likely to choose?
You don’t need to build the Taj Mahal, but if your dwelling can stand out from the crowd through a bit more thought in the design and the general appeal of the property, you will be well served for years to come.
The general layout of the property can also make a big difference, as can the fixtures and fittings. Consider trying to do multiple loads of washing with only a minimum size washing machine and dryer? Imagine having two or three Participants in a lounge area with their own reclining chairs, side table, hoist, wheelchair etc. Does it sound kind of crowded? Now imagine being a prospective Participant deciding whether they want to take the vacant room and looking at this crowded space.
Design is particularly important when it comes to Robust dwellings, as you have the added consideration of casual observation and importantly the Carer’s personal safety.
Side tip: You can either build the Robust dwelling with quality robust materials and reduce your yield, or you can deal with a lot more repairs over the next 20 years.
So, what makes your Property desirable to tenants?
Simple – put the needs of your customer (Participant and carer) first and be just that little bit better than your competition. That’s how you make your property hot.
