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.

Frequently Asked Questions

Will the NRAS be extended or replaced?

The Federal Government has confirmed that the NRAS will not be extended and there are no current plans for any replacement schemes to address the supply of affordable housing at this time.

What happens with my Lease Agreement with HHR after the NRAS incentive end date?

Your Lease Agreement with HHR will cease on the lease agreement end date which will generally coincide with the NRAS end date. Depending on the instructions from the owner you may be able to negotiate a new lease but the weekly rent may well increase to market rent.

Can the owner charge market rent as soon as the NRAS on the property ends?

Rent cannot be increased during a fixed term lease, so if your lease end date extends beyond the NRAS end date your rent will continue at the fixed rate until the lease end date.

If the owner would like to offer you a new lease at a higher rent, they must provide you with 2 months’ notice of the increase, and it must be at least 6 months since the last the last increase or the tenancy start date.

The increase should not be considered excessive and should reflect market rent for comparable properties.

Can I stay in the property after the end of the NRAS?

Subject to the owner’s approval, you can stay in your property at the end of the NRAS but you will need to negotiate and sign a new lease. Tenants will not be required to meet the NRAS eligibility requirements after the NRAS end date. Our experience to date has demonstrated that owners are keen to keep good NRAS tenants, and tenants usually wish to sustain their tenancy at the end of the NRAS, subject to affordability. HHR should be able to assist you to determine your current affordability if you would like to negotiate a new lease with the owner.

What if I cannot afford market rent?

If you cannot afford market rent and the owner does not wish to, or is unable to continue charging an ‘affordable’ rent, you will need to either:

- Vacate the property at the end of your lease (subject to the required residential tenancies legislation for notice periods); or

- Negotiate an increased amount that is affordable for you subject to the owner’s approval.

Please contact your Property Manager who may be able to assist you to investigate other options.

What happens if the owner appoints another agent after the end of the NRAS?

If the owner appoints another agent to sell or manage the property at the end of the NRAS, they will provide HHR with contact information for the new agent. HHR will provide the new agent with the details of the current tenant and lease details. The new agent will manage the owner’s instruction for after the NRAS end date and liaise with HHR to arrange a handover for the property.

If you vacate the property on or before the NRAS end date, HHR will manage the vacate process (complete the exit inspection, manage the bond claim etc.). If you vacate after the end of the NRAS, the new agent will manage the vacate. Please remember that any intention to vacate the property will require written notice to the agent in line with your lease agreement.

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