WHAT HAPPENS AT THE END OF THE NRAS PERIOD FOR TENANTS?

The federally funded National Rental Affordability Scheme (NRAS) has been a major boost for tenants since its introduction in 2008, however as the incentive starts to come to an end some tenants have been left wondering where they will stand.

For those who haven’t heard of it before, the scheme was introduced as a way to provide affordable housing for renters, offering rental properties for at least 20 per cent below market rates.
While it has been a great option for those who have met eligibility requirements, the scheme was officially axed in 2014 and has now closed to new entrants. Those who took up the scheme have access to it for a 10-year period, with no properties to be left in the scheme by mid-2026.

So, what happens when the NRAS period expires at my rental?

You may be advised that the NRAS period on your rental property is coming to an end soon, however it’s worth keeping in mind that nothing will change until the end of your lease agreement.

Rent cannot be increased during a fixed term lease.

Is there a chance that rent will go up once my lease ends?

If the NRAS incentive expires during your lease period then your rent won’t be able to change until your lease has expired. At this time the owner may like to offer a new lease that is more in line with the market rate.

Keep in mind however that all tenancy rules will still need to be followed for your state or territory, meaning that adequate notice of any potential rental increases will need to be given and that rental increases should be in line with the market rate and not be excessive.

Is the owner likely to keep me on as a tenant?

While there is a chance that the owner may decide to sell or even move into the property themselves, in most cases they want to keep the property as an investment property and keep their tenants on too.

One of the good things about an NRAS incentive expiring is the tenant will no longer be required to meet the NRAS eligibility requirements after the NRAS end date. If the owner is happy to keep the tenant on, and they are happy to stay then a new lease is likely to be negotiated.

What options are there if I can no longer afford the rent?

If there is a rental increase and you can’t afford it then you have the option of either vacating the property at the end of your rental agreement, or negotiating a different rental amount that is within your price range, subject to the owner’s approval.

Contact your property manager

Your property manager is the best person to speak to if you want to find out what options you may have. They will be able to give you an estimate of what the rent will go up to once the NRAS incentive at your property expires, as well as offer you alternative rental options should a previous NRAS property no longer be suitable.

It’s also a good idea to read through your rental lease and brush up on the tenancy rules and guidelines in your state or territory so you know where you stand when it comes to any rental increases at the end of your lease agreement.