Can I rent my house to NDIS participants?

The National Disability Insurance Scheme (NDIS) helps Australians living with a disability to lead more independent lives by providing funding for specially designed homes that cater to high support needs.

As there’s a major demand for this type of housing, rental returns are typically higher. With an opportunity for property owners to make a real difference in their community whilst enjoying a new revenue stream, you might be wondering, ‘Can I rent my house to NDIS participants?’

There’s no one-size-fits-all answer, as it all depends on whether your rental property meets strict Government standards.

After all, these homes have to be purpose-built or modified to address tenants’ specific and complex requirements.

In this article, we explain whether you can rent your house to the NDIS, how to enrol and why you should consider it. Keep reading to learn more about becoming a landlord for NDIS participants.

What is SDA housing under the NDIS?

Standing for Specialist Disability Accommodation, SDA is housing built exclusively for NDIS-approved tenants who receive funding to cover their rent.

SDA homes are designed with the needs of people with disabilities in mind, incorporating accessible features that make the living space safe and easy to navigate.

These rental properties are divided into several SDA Design Categories: robust, improved liveability, fully accessible, or high physical support.

As of July 1st, 2021, new SDA properties must include a certificate from an accredited SDA assessor, detailing the specific design category of the home.

Benefits of renting your house to NDIS participants

Higher rental income

Over 4.4 million Australians are living with disabilities. With a significant shortage of suitable housing for these individuals, NDIS-compliant homes are in huge demand.

To help meet this need, the Government is encouraging private investors to rent their houses to the NDIS by offering higher-than-average rental rates and long-term leases.

That means NDIS properties can provide much better cash flow than standard rentals, with yields of 8-14% compared to just 3-5%.

Moreover, newly built SDA properties that satisfy Government standards are guaranteed to qualify.

Longer leases

Once tenants find a comfortable place that caters to their needs, they tend to stay for the long haul.

Therefore, NDIS tenancies typically involve long-term agreements, often spanning several years, which means more stability and a lower risk of vacancy periods for you as the landlord.

Steady demand

There is a growing demand for accessible housing for people with disabilities, which means a steady market for NDIS-approved rental homes.

Greater security

With a large portion of the rental income funded by the government, you can rest assured of reliable and timely payments. Ultimately, this reduces the risk of tenants defaulting on their rent.

Social impact

Renting to NDIS participants helps to support individuals with disabilities, fulfilling an important social responsibility.

As well as empowering tenants to achieve greater independence by providing the necessary assistance to live on their own, SDA strategically places them near community services for improved participation

Paying a key role in this process can be incredibly rewarding, irrespective of financial gains.

Location, location, location

Before you decide to rent your house to the NDIS, make sure it is in a suitable location. This is crucial, as tenants living with a disability need particular services and facilities near their homes.

Ideally, the rental property will only be a short distance from public transport, healthcare providers, community clubs and other amenities. That way, tenants won’t miss out on any capacity-building opportunities, social events or necessary care.

Keep in mind that tenants have the final say in where they choose to live; and an empty rental could result in financial loss for you.

Retrofitting your house to meet SDA Design Standards

If you want to rent your house to NDIS participants, it’s important to know how to transform an existing home into SDA.

Most standard homes don’t meet the strict criteria needed for SDA registration with the NDIS. To upgrade an existing home to be considered a ‘new build’ SDA, must meet the following conditions:

  1. The property must have its certificate of occupancy dated on or after April 1, 2016, either originally or as a result of renovation.
  2. It should be registered to house no more than five long-term residents or be the home of an NDIS participant planning to become a registered SDA provider.
  3. The property must follow density rules, which limit how many dwellings can be on a single parcel of land.
  4. The certificate of occupancy should have been issued within the past 20 years.
  5. All bedrooms and shared areas used by SDA participants must meet the minimum standards for the intended SDA design category.

If your house hasn’t been registered as SDA in the past, it has to have a certificate of occupancy from April 1, 2016, or later and must be upgraded to meet the necessary Design Standards.

This often means making significant changes to ensure that:

  • Hallways are at least 1200mm wide.
  • Doorway thresholds are step-free both inside and outside.
  • Kitchens have task lighting.
  • Corner showers are at least 1160mm x 1100mm with no step.
  • Kitchens, bathrooms, and laundry areas have slip-resistant flooring with a minimum P3 or R10 rating.

Therefore, while converting an existing home to meet SDA standards is possible, it usually requires a significant investment.

Enrolling your rental house with the NDIS

To rent your house to NDIS participants, you’ll need to enrol it online via the My NDIS provider portal. At this stage, you must supply certain information, such as a certificate of compliance signed by an accredited SDA Assessor.

If your rental property is existing or legacy stock, you must also provide evidence that:

  • The home has accommodated a resident with high support needs and/or extreme functional impairment between 1 July 2013 and 1 December 2016; and
  • A resident received Disability Support Pension payments from the Government between 1 July 2013 and 1 December 2016.

How does rent get paid for NDIS housing?

If you rent your house to the NDIS, you’ll receive income in three separate payments. Importantly, there is a limit to how much you can charge for each:

Therefore, as of April 2024, the most you can ask an SDA tenant to pay is $463.75 per fortnight.

You can ask a tenant to pay this maximum amount, even if they don’t receive the Disability Support Pension or Commonwealth Rent Assistance.

Regardless of the figure, how and when these rental payments are made will be set out in your Tenancy Agreement.

A word on home modifications

If an NDIS participant is lucky enough to own their home, they might be able to get funding for home modifications through their NDIS plan. This is different to retrofitting a house for tenants.

As opposed to the major upgrades needed to register a rental property with the SDA scheme, NDIS home modifications focus on making necessary changes so participants can easily use parts of their home that are causing issues for them.

These modifications not only improve quality of life by enhancing security and accessibility but also help keep participants out of residential aged care before it’s truly essential.

To secure funding for home modifications in an NDIS rental property, the NDIS must first classify these changes as either minor or complex.

The process starts with a qualified occupational therapist who will assess and approve the modifications. Once given the green light, NDIS builders and designers can be brought in to get the job done.

Partner with a trusted SDA provider

Renting your house to NDIS participants is not only a great way to support your community but also an opportunity to boost your income.

But whether you plan to build from the ground up or retrofit an existing property, it’s important to understand that this rental accommodation must meet strict Government standards.

After all, it has to provide a safe, comfortable and accessible home for tenants living with a disability. Moreover, these residents will also need to receive regular care from trusted professionals.

Ready to take the next step?

As an NDIS-registered SDA provider, Home In Place partners with hundreds of property owners across NSW, Victoria and Queensland to look after participants who require high levels of disability support.

Our skilled team offers complete tenancy and property management services so that residents can live independently while receiving high-quality care.

During the last two audits conducted by the NDIS Quality & Safeguards Commission, we exceeded all standards of the SDA Module and received a recommendation for the highest rating of 3 in Best Practice for NDIS Tenancy Management.

Find out more about our Partnerships for Specialist Disability Accommodation.

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