TENANT GAP (IN GOLD + ICON)
If unrented 6 weeks after handover, receive 92% of the base rental estimate from week 7
If unrented 6 weeks after handover (starting when the keys/possession is physically handed over), DPN will pay you 92% of the base rental estimate from the seventh week onwards for up to two (2) years from handover (starting when the keys/possession is physically handed over), paid weekly until your place is tenanted.
For example, if your base rental appraisal is $600 per week, DPN will pay you 92% of this ($552 per week) from week seven until you find a tenant or until two (2) years have passed since handover, whichever occurs first. Your maximum risk is 8% during this period and expenses are tax deductible. The following conditions apply to Tenant Gap Guarantees:
- Base rental appraisal will be made by an independent real estate agent selected by DPN, based on research at time of sale (often before land registers and home is built in case of house and land packages);
- The tenant gap is guaranteed for a maximum of 2 years from the time of handover;
- Purchasers must engage an agent/property manager recommended and approved by DPN and sign a Management Agreement four weeks prior to handover. DPN reserves the right to appoint alternate agents/property managers at any time, with the purchaser’s approval which must not be unreasonably withheld, to secure tenants;
- The relevant property must be advertised at a rental amount in accordance with the rental appraisal and current market advice from the DPN approved property manager;
- The purchaser (owner) may not turn down any reasonable application that has been vetted by the property manager by way of the relevant standard checks (e.g. on the basis of a renter having children or pets); and
- Should the purchaser (owner) be away/unavailable to make decisions on the letting of the property for an extended period of time, the owner must nominate someone (e.g. property manager, DPN, friend or associate) to make such decisions as accepting an application and pricing movement on their behalf.
Non compliance with any of the above conditions voids the application of the DPN Tenant Gap Guarantee.