Rental Guarantee FAQs

The rental guarantee is between the rental manager and you, the investor. Separately, the rental manager advises it signs a head lease with the regional hospital, which rents the whole home to house its staff. You are not a party to the head lease and properT network has not sighted it. The guarantee is the rental manager’s obligation to you, so its strength depends on the rental manager and the head lease behind it.

$350 per bedroom per week, whether one room or every room is occupied. For a five-bedroom home that is $1,750 a week, or about $91,000 a year: roughly 10%* of a $910,000 property.

Five years, under the rental manager’s agreement.

You may be able to negotiate a new guarantee with the rental manager or move to standard rental management. A new guarantee is not assured.

The head lease is a legal agreement between the rental manager and the institution. The rental manager advises the hospital helped design the floor plan and choose the furniture package to suit its staff. Ask your solicitor to review your rental management agreement, and ask the rental manager about the head lease, before you commit.

The rental manager expects ongoing demand: the hospital it works with already rents around 100 homes for staff, many of them poorly suited. That is the rental manager’s expectation, not a guarantee, so make sure the numbers work at market rent too.

Under this guarantee, rent is paid per bedroom at the agreed rate whether the home has one resident or five.

Rent reviews are set out in the rental management agreement. Check whether they are linked to CPI, market reviews or a fixed amount, and how increases are passed on to you.

Many do, depending on the design, parking, building classification and local planning rules. Check the approvals for each property.

A five-bedroom Co-Living home of this type is generally designed and built as Class 1b under the National Construction Code. Confirm the classification for your specific property.

Land tax depends on the state, your ownership structure and your other landholdings. Do not assume an exemption: ask your accountant or the relevant State Revenue Office.

Lenders that finance Co-Living may value the property on its income. Valuations vary from property to property and are not guaranteed.

No. Not all lenders offer Co-Living loans. Specialist finance brokers can access lenders that do.

Some investors have seen a higher valuation once the home is complete and tenanted with a guarantee in place, and have used that equity toward their next purchase. Results vary and an uplift is not guaranteed.

No. It remains a residential property.

Residential tenancy laws apply, so residents are responsible for damage they cause, as with other residential tenancies. Check your landlord insurance covers Co-Living.

Purpose-built homes with private suites suit professional staff better than shared, poorly suited houses. The rental manager advises this helps the hospital attract and keep doctors, nurses and other professionals.

Under the rental manager’s agreement, rent starts 14 days after the home is handed over to you, regardless of how quickly residents move in.

During the guarantee period the rental manager carries the vacancy risk, not you. That protection depends on the rental manager meeting its obligations.