Guidelines For NDIS SDA Head Lease Agreements
Initial Stage:
Education and Initial Discussion Between Prospective Lessee and Lessor
Lessor
Lessee
- Read and understand Overview of the NDIS
- Read and understand the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016
- Read and understand the NDIS Specialist Disability Accommodation (SDA) Operational-Guideline/SDA.html
- Read and understand Overview of the NDIS
- Read and understand the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016
- Read and understand the NDIS Specialist Disability Accommodation (SDA) Operational-Guideline/SDA.html
Option 1.
Head Lessees of a NDIS SDA have to be certified as a NDIS SDA Provider. A register of all NDIS providers and all provider categories can be found here.
Option 2.
Go to Add New Listing on www.disabilityhousing.com.au register and upload your ‘Head Lease Opportunity’ so that disability housing providers can discover it.
Option 3.
Enquire at your local NDIS Local Area Coordination office, they may be aware of organisations in need of additional SDA properties.
Option 4.
Contact individual disability housing providers/managers in your local area.
Option 1.
Search for Head Lease Opportunities on this website.
Option 2.
Contact your local Council Planning Division and search for development applications for accessible housing and contact the developer.
Option 3.
Enquire at your local NDIS Local Area Coordination office, they may be aware of new properties coming to the market.
- Identify the Lessee’s capacity to attract NDIS SDA approved tenants, asses their experience and financial capacity.
- Discuss the Lessees preferred location, SDA building type and number of participants the property is to accommodate.
- Discuss preferred floor plan, property features (e.g. will the participants require ceiling hoists, smart house technology, emergency power back up, outgoings (including insurance).
- Discuss any other preferred customizations.
- Discuss lease price structure, this can be a percentage of the property’s full SDA annual income (lessor’s risk is is diminished) or a fixed price (lessee’s risk is diminished).
- Discuss lease term and further lease options, such as an initial rent free period, and outgoings (ongoing property costs).
- Identify the Lessor’s capacity to deliver a property and that it will be eligible for registration on the NDIS SDA Portal.
- Asses the Lessor’s experience and financial capacity.
- Discuss the Lessor’s time frame to deliver a SDA that meets your requirements.
- Discuss your preferred floor plan, property features (e.g. will the property have ceiling hoists, smart house technology, emergency power back up.
- Discuss the properties future outgoings (including insurances).
- Discuss any other preferred customizations.
- Discuss lease price structure, this can be a percentage of the properties full SDA annual income (lessor’s risk is is diminished) or a fixed price (Lessee’s risk is diminished).
- Discuss lease term and further lease options and the possibility of an initial rent free period to mitigate your risk during the transition period.
Due Diligence And Feasibility Stage:
Location – Concept Drawings – Pricing Cost And Structure – Letter Of Intention To Lease
- Research and conditionally secure a suitable property in the Lessee’s preferred location. At this stage it is preferable to negotiate a contract for sale subject to DA approval, and finance, generally 60 days.
- Design and produce concept drawings that meet the Lessee’s requirements, and the proposed participant/s SDA building type and design category approved in their NDIS Plan.
- Consult a Disability Access Design Consultant accredited by the Association of Consultants in Access Australia Inc to ensure your design will comply.
- Obtain building quotes, ensure that the builder is reputable and has the financial capacity to complete customised dwellings.
- Engage a local Town Planner and Building Certifier who fully understand the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016 and NDIS Specialist Disability Accommodation (SDA) Operational-Guideline/SDA.html
- Complete a full financial analysis with an experienced property finance advisor, and prepare lease fee, and costs structure options.
- Engage a Legal firm to advise on and prepare a Letter Of Intention To Lease.
- Present, discuss and negotiate terms and conditions with proposed Lessee.
- Execute lease.
- The new NDIS SDA rules are disrupting the whole disability housing industry. Ensure that committing to a Head Lease is a Business For Profit opportunity that fits within your organisations business strategy, head leases are generally long term commitments.
- Review and confirm the proposed participants Exploring Housing Options Package (EHOP) requirements and determine a location that meets all participants location requirements.
- Review the proposed participants EHOP requirements and confirm that all specific building features have been included in the design and specifications.
- Review the proposed concept drawings and property features, confirm they match the participant NDIS Plan, and approved SDA building type and design category.
- Review the Letter Of Intention To Lease Letter put forward by the Lessor.
- Review your organisation’s financial and resources capacity and risk.
- Engage Legal Advice and review your organisations legal responsibilities and risks.
- Discuss and negotiate terms and conditions of the Letter Of Intention To Lease with the Lessor.
- Execute Letter Of Intention To Lease.
Review and Execute Lease
Legal Commitment – Secure Management Rights For A New Disability Dwelling
- Engage an experienced disability housing architect or property design professional to produce full concept drawings (these are needed to become part of the lease)
- Engage your NDIS SDA town Planner to prepare and submit a Development Application to the local Council. This will vary, depending on the extent of re development required, however, in most jurisdictions a Change Of Use application is needed.
- Engage a solicitor to prepare the lease. Ensure the legal firm has a good understanding of the lease requirements under the NDIS Rules, State Property legislation and Council Planning requirements.
- The cost of preparing the lease generally falls with the Lessor and can amount to several thousands of dollars, therefore being prepared and will keep the costs down.
- Review the Lease with your solicitor and ensure it reflects what was discussed and presented in the Letter Of Intention To Lease Letter.
- Review the full concept drawings that will be included in the lease.
- The commencement date is when the property is completed and ready to be enrolled on the NDIS SDA portal.
Construction And Handover Stage:
Build Contract – Project Management – Lessee Up dates
- Confirm DA approval and finance is available to complete.
- The builder will prepare a building contract, which should be reviewed with your solicitor.
- Confirm your proposed construction complies with the Livability Guidelines and NDIS SDA Guidelines.
- Confirm finance is available to complete the project.
- Execute build contract and begin construction.
- Manage the construction process to completion.
- Regularly send updates to the Lessee.
- The Lessor hands over property to the Lessee and the Lease commences.
- For people with disability to live in the new SDA and to have the SDA allowance in their plan they need to be approved at the level the the property is being constructed to, or at a lower level as agreed.
- The property can only be enrolled on to the NDIS SDA portal by a registered NDIS SDA Provider. The Lessee will generally be the SDA Provider
- The property needs to be completed, and can only be enrolled by the owner or with permission from the owner. The Lease gives the Lessee permission to enroll the property on to the SDA portal.
- Once the property is enrolled on the portal the SDA provider can complete Service Agreements with participants moving into the property.
- Once the Agreements are registered, the SDA payments can start.
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