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Selecting a manager for your affordable housing properties

You can manage your affordable housing portfolio yourself if you have the necessary tenancy management skill.

Alternatively, you can contract a tenancy manager to manage the properties on your behalf. For most properties, you could choose a community housing provider or a private real estate agent or specialist property management service.

If your affordable housing properties were developed under the ARHSEPP, they must be rented as affordable housing for a period of 10 years and must be managed by a community housing provider.

If you decide to contract a specialist tenancy manager, there are a number of different types of contractual arrangements you could use, each with an appropriate legal arrangement. The table below outlines some of the possible arrangements to consider.

Type of arrangement

Fee for service

The owner pays the manager a standard fee to provide management services – possibly both tenancy and property management services.

Fee for service with risk sharing

Normal fee for service plus the manager agrees to take on certain project risks – eg. vacancy risk – in exchange for a higher fee or other form of compensation.

Affordable Housing Growth Program

Where the owner’s interest is to grow affordable housing, an arrangement can be reached whereby the manager reinvests all surpluses in affordable housing for a certain target group or in a specific local area.

Joint venture

Joint venture arrangements may be reached whereby both parties make contributions to the upfront costs and in exchange, ownership and the proceeds of the project are shared.

Type of arrangement

Fee for service

Standard Agency Management Plus an Affordable Housing Management Annexure. Another option is for the owner to headlease the property to the Manager. The Manager would then sublease to tenants.

Fee for service with risk sharing

Standard Agency Management Plus an Affordable Housing Management Annexure. Another option is for the owner to headlease the property to the Manager. The Manager would then sublease to tenants.

Affordable Housing Growth Program

Specialised Management Agreement Plus headlease over the property.

Joint venture

Specialised Deed of Agreement.

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Last updated: 23 Oct 2019