Under the Cash Flow Protection Plan, you enter into a master lease arrangement with Aspire, whereby we become your master-tenant and we sub-lease the property to eligible tenants in line with NRAS Regulations. You will receive the full market rent as determined by the independent valuation report completed as part of the approval process and you will not be charged property management fees by Aspire.
By having Aspire as your master-tenant, we take responsibility of the management of the property, leasing, rent collection, inspections etc. This means that;
Not all properties qualify for the Aspire Cash Flow Protection Plan and there is a very limited number of master leases available. An offer to participate is only made to the owners of qualifying properties.
Step 1: Does the property qualify?
Aspire will assess the dwelling against the NRAS criteria for features such as its age, location, number of bedrooms, market rent, State Government support for the dwelling, NBN access etc. Upon completion of this work, Aspire confirms if the property has been successful in meeting the required criteria.
Step 2: Enter into master lease agreement with Aspire, subject to Government approval
Aspire will issue the relevant documents and contracts that specify the details of the arrangement including the date at which the master lease will start and end. The investor signs and returns the agreements which are then counter-signed by Aspire. The agreements are subject to formal approval by the Government for the property to be an official NRAS rental dwelling.
Step 3: Formal approval and commencement of the master lease
Once the Government provides formal approval, the master lease becomes unconditional and the investors can enjoy the benefits of full market rent for the term of the master lease arrangement with Aspire.
Yes. If the property is unavailable to rent, such as if it has been damaged due to a weather event, you will not receive any rent until necessary repairs have been finalized and the dwelling is compliant with Queensland law for being habitable.
Furthermore, if there are repairs or maintenance required to meet the conditions of the lease (e.g. if it comes with an air-conditioner but the air-conditioner isn’t working), a reduction to full market rent may be applicable for the period it takes for the issue to be resolved. For full details of this, please refer to the master lease agreement.
The first year will be in accordance with the independent market rent valuation report, in each subsequent year rent will be adjusted based upon either the CPI index or a new independent rental valuation report. The exact timing is specific to each property and you will be given a rent review schedule as part of the approval process which specifies the dates for each rent review and whether it will be via CPI index or independent valuation.
You are required to hold building and contents insurance, public liability insurance and landlord tenant default insurance for our mutual protection. The landlord tenant default insurance policy is required to have zero excess on claims for loss of rent, and no more than $500 excess for other types of claims such as damage to the property.
You remain responsible for the same maintenance obligations as you would for a regular tenancy in accordance with residential tenancy law. Aspire will seek your instructions and approval for repairs and maintenance, however, we may authorise maintenance on your behalf where it is required in order for Aspire to comply with the terms of the lease with the sub-tenant. For example, if emergency maintenance is required (such as a burst pipe), and we are unable to get your instructions in a timely manner, we may attend to this work immediately. Also, if there is maintenance required that may give rise to a tenant claim for compensation or rent reduction (e.g. the air-conditioner is not working) and we have not received your instructions within 3-days, we may attend to the repairs on your behalf.
For as little as $10 per week, investors can take advantage of our Fixed Price Maintenance Guarantee to enjoy top level preventative maintenance and peace-of-mind knowing that your maintenance is sorted. (links to Fixed Price Maintenance Guarantee page)
No. Aspire is accepting the responsibility for each tenant meeting their tenancy obligations, therefore we must also be responsible for selecting the tenants whom we feel will best meet those obligations.
Aspire receives an annual payment from the Government under the National Rental Affordability Scheme (NRAS) if we ensure the property is managed in accordance with the NRAS Regulations. As our funding is from Government, we do not charge any fees to property investors for the Cash Flow Protection Plan.
For existing clients who own an NRAS investment property, some frequently asked questions are below:
The RTOs are issued annually, and for the vast majority of investors, the RTO is supplied before 30 June each year in time for tax preparation and lodgement. The RTOs are issued by the Department of Social Services (DSS) and Aspire endeavours to issue the RTOs to investors within 7 days of receipt from DSS.
The State Government payment is usually paid within 6 to 8 weeks of the RTO being issued. The payment is made by the State Government and Aspire endeavours to issue individual payments to investors within 3 weeks of receipt from the State Government.