The National Rental Affordability Scheme (NRAS) is back on the agenda, with various groups offering up their opinons on what should happen to the program - but there are still elements of the scheme that many investors don't understand.
Blogger: Darren Standish, Property Prosperity
A NRAS Consortium is a company that manages your tax incentive with the Government on your behalf. They make sure your tenant remains eligible so that you will receive your tax credit each year from the government.
The consortium will then charge you an annual audit fee ranging somewhere between $500 - $700 p.a depending on the consortium.
Eligible tenants are individuals or families who are considered to be on moderate incomes. There are income limits for tenants and they must prove their salaries before applying, to be an ‘eligible’ tenant.
Once this is confirmed, then they can request to be your tenant and if agreed by you, become your tenant and receive a rental discount of 20% on your property.
There is no shortage of tenants will to take advantage of the 20% savings on there rent, particularly given that there are around 1.5m households who currently fall in this category
About Darren Standish
Darren Standish established Property Prosperity in 2004 initially as a property development company, however after repeated requests for assistance the business evolved into a development consulting business.