End of NRAS
Annual incentives have been provided to investors via the NRAS since 2008 to provide affordable rental dwellings at least 20 percent below market rates. Dwellings began exiting NRAS progressively from August 2018 through to June 2026, as the ten-year timeframe attached to the financial incentive concludes. The ten-year timeframe attached to the financial incentive was an original design feature of NRAS.
Once the NRAS dwelling has expired the owner will no longer receive the annual NRAS refundable tax offset and incentive payment which offsets the reduction in weekly rent.
HHR will keep in regular contact with owners of NRAS properties to establish their plans for their property after the NRAS end date. The terms of your final lease agreement will be honoured and HHR will provide you with as much information as possible to enable you to make plans for the end of your lease agreement.
Owners will have numerous options for the end of the NRAS including:
- Selling the property and either requiring vacant possession at the end of your lease or extending your lease and marketing the property with tenants in situ.
- Removing the property from the rental market and requiring vacant possession at the end of your lease.
- Keeping the property as a rental property. This could result in a number of outcomes, depending on the owner’s personal circumstances:
- Rent could be increased to market rent at the end of the lease. You need to consider your personal financial situation when negotiating a renewal of your lease at market rent or agreed rent. If your current circumstances do not allow for any increase in rent you may have to consider alternative housing options and HHR will provide as much information and support to assist you to find alternate housing before you have to vacate the property at the end of your lease. If you feel you may be in this position please make contact with your Property Manager.
- The owner may wish to retain the property at affordable market rent and may offer you the opportunity to negotiate a new lease.
- The owner may wish to appoint an alternative property manager and the management of your home will transfer to the new agent at the end of your lease. You will need to negotiate a new lease with the new agent.
As required by law, we will notify tenant/s of the end of the NRAS period at least 90 days before the expiry date.