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Owning SDA (25)

Category: Owning SDA
A standard property management agreement is not compliant and can not be used. SDAPA Members take a head lease over your property which is registered on title. This is to protect the tenants and ensure compliance with legislation. In order for an SDA housing Provider to make a claim to the NDIA for SDA payments it must either own or control the property which is the subject of the claim. The Head Lease provides this control.
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Categories: Owning SDA, SDA Income

No. The Lease used by SDAPA Members is a flow through head lease. The terms of the lease are that you are paid all of the income, minus management fees and all outgoings.  

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I have heard other SDA Housing Providers “outsource” the property management to standard rental management company? Is this what SDAPA Members do?  

No, absolutely not! The SDA Housing Provider is solely responsible for ensuring the safety of your tenants the and compliance of your investment. Unless the rental management company is also a Registered Housing Provider, management can NOT be outsourced! SDAPA Members manage every aspect of your investment … as they are required to. The minute they lose their compliance you lose your income.  Non-compliance on the part of your SDA Housing Provider should be a major concern to EVERY investor!

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Category: Owning SDA

Firstly this is a compliance issue. Compliant SDA Housing Providers are required by the SDA Rules to ensure the long term stability of availability of SDA properties. The NDIA is paying owners well above market to account for the known situation where it may take a participant a number of months to make the transition in your property. The rules are in place (and reflected in our members head leases) in order to allow tenants the time they need. Secondly this also allows SDA Providers the confidence they need in order to go out and make promises of places to participants without any concern that an owner may pull the property at the last minute. This would be a minor inconvenience to the SDA Provider but absolutely devastating to the Participant. We can not allow this to be even a remote possibility. Lastly, it is very relevant to note that our Members only gets paid when you do. So your property on their books is costing them money every day there is no tenant. Out of context, the vacancy terms in the lease may sound heavily weighted in the SDA Providers favour. However, the commercial reality is that there is no situation where our Members would keep control of your property if they were not 100% confident in placing a tenant. Why would they carry management costs for an empty property?

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No. The only terms you have for termination are non-performance due to extended vacancy. This is required to ensure the long term continuity of housing for participants. If the head lease were terminated the SDA Agreements with the tenants would also be void leaving them completely exposed. 

If there were to be an extended vacancy, we would be supporting termination by our Members. The reason our Members spend so much time on site selection and design is to prevent this from happening. They make no money from empty houses.  

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Category: Owning SDA
This is the reality of SDA ownership. You have the benefits of higher income and security of payments but you also have the downside. The major downside of any dealing with a government department is time and inefficient (slow) systems. Holdups can happen on one or all of the following 3 stages. The property registration; the participants SDA application, registration and approval; and the NDIS Planners Service Booking stage. Property Registration – The SDA Housing Provider lodges your property for enrolment as soon as the build er and certifier supply us the documents we need. From here they are following up regularly but little can be done but to ensure the property is correctly displaying in our NDIS Portal. SDA Application for the Participant – The SDA Housing Provider (who is a member of the SDAPA) will only move an SDA Participant in before their approval has come through in very special cases where there is no risk of approval being denied. In this case you are getting the RRC (or maybe MTA payments) instead of an empty property. NDIS Planners Service Bookings – This is another situation where a good planner will have the process complete within a day but others could take weeks. Dealing with these frustrations is why you need a very experienced SDA Provider who knows when to wait and when to push. SDAPA Members are the best in the industry. The SDA Housing Provider doesn’t get paid until you do so you can be assured they are doing all they can to speed up payments. We understand the temptation to email or call our Members every week for updates but all this does is slow them down. If you have not had an update it is because they are still waiting for an update to share.
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This is an exclusive provision that SDAPA Members have for their Participants. Ask your SDAPA Member for details.

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0
Categories: Owning SDA, SDA Income

SDAPA Members make a claim to the NDIA each month in areas. The NDIA then pays within 10 days of invoice. This money along with the RRC from the Tenant are paid directly into the Members Trust Account for each State and Territory. This is then distributed to owners minus outgoings. Owners receive a Trust Statement each month.     

See “SDA Payments” 

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Categories: Owning SDA, SDA Income

When are SDA payments made? 

The NDIA treats SDA payments the same as all other invoices they pay. So unlike traditional rent which is paid in advance all SDA payments can only be invoiced AFTER the service has been delivered. So at the end of each month our Members lodge a claim for payment. The NDIA then has 10 days to pay.  

What is the process you have to follow for SDA Payments? 

So the NDIS has finally provided an enrolment number for your dwelling.   

This means you are getting close to getting SDA payments.  

From here your SDA Housing Provider will: 

  1. Provide the number to the NDIS planner; 
  2. The NDIS planner uploads a quote request to our provider portal – sometimes a planner will want a letter of offer before creating this; 
  3. SDA Housing Provider provides a quote for the SDA 
  4. The NDIS accepts this quote (assuming it’s at the price guide limit so they have to) 
  5. The NDIS then issues a request for a service agreement; 
  6. SDA Housing Provider gives them the service agreement; 
  7. SDA Housing Provider can finally upload invoices for the SDA. 
  8. These are checked by the SDA Payments team and payments flow to our Members Trust Account usually within 10 days of the end of month.  
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Category: Owning SDA

Pre certification helps the enrolment team. Apart from this there is nothing else that can be done. The NDIA is paying you above market rent to allow for these delays.

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An SDA tenant participant has been in my property for a long time. Why haven’t I been paid yet? 

This is the reality of SDA ownership. You have the benefits of higher income and security of payments but you also have the downside. The major downside of any dealing with a government department is time and inefficient (slow) systems.  

Holdups can happen on one or all of the following 3 stages. The property registration; the participants SDA application, registration and approval; and the NDIS Planners Service Booking stage.  

Property Registration – The SDA Housing Provider lodges your property for enrolment as soon as the build er and certifier supply us the documents we need. From here they are following up regularly but little can be done but to ensure the property is correctly displaying in our NDIS Portal. 

SDA Application for the Participant – The SDA Housing Provider (who is a member of the SDAPA) will only move an SDA Participant in before their approval has come through in very special cases where there is no risk of approval being denied. In this case you are getting the RRC (or maybe MTA payments) instead of an empty property.  

NDIS Planners Service Bookings – This is another situation where a good planner will have the process complete within a day but others could take weeks. Dealing with these frustrations is why you need a very experienced SDA Provider who knows when to wait and when to push. SDAPA Members are the best in the industry.

The SDA Housing Provider doesn’t get paid until you do so you can be assured they are doing all they can to speed up payments. We understand the temptation to email or call our Members every week for updates but all this does is slow them down. If you have not had an update it is because they are still waiting for an update to share.  

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Category: Owning SDA

Below are some case studies from our Members showing the real life frustrations that are part of every day life for a Compliant SDA Housing Provider.

Mr R case study 

Mr R is an existing tenant. 3 months ago he had an unscheduled plan review. This means he had a change of circumstance that had nothing to do with SDA but something to do with his other care needs. While SDA remains in his plan and is automatically included in a new plan … a new plan cancels all existing service bookings. A service booking is required in our SDA Provider Portal BEFORE we can claim any SDA payments.  

After repeatedly chasing for the last 3 months, a new quote and service booking automatically appeared in our portal today. This was backdated to when the previous plan expired so no income is lost … but there have been no payments in the last 3 months while we waited.  

Good news we can be paid now right? Not quite. The amounts written in the service booking are completely wrong so we need to go back to the support coordinator who in turn goes back to the NDIS Planner to find out why the amounts are wrong. Everything is correct on our side and nothing at the SDA level has changed.  

Mr A Case Study 

Mr A is an existing tenant. He is on his third unscheduled plan review in the last 4 months. As above for Mr R, every review cancels all existing bookings and takes away our ability to make claims until the new Service Booking is lodged by the NDIA Planner. 

Mr B Case 

Mr B moved into a property in April of 2021. He was lined up and had his entire support team working to get him out of hospital for 2 months before the property was built. He finally moved in 3 weeks after the property was handed over for management. It is now 4 months later and we have not received any SDA payments.  

In this case Mr B’s SDA approval is complete and ready for the Planner to lodge a Service Booking Request in our SDA Provider Portal … BUT the NDIS Planner needs to see the property in the portal BEFORE they can lodge the booking request.  

All documents required for registering the house were lodged on the day of handover. We are still waiting for registration to appear in our portal.  

In the same street one house was registered in 5 days. The other identical one that Mr B is in is still waiting. A complaint has been lodged so registration should only be a maximum of 4-6 weeks away. Then we will require the Planner to lodge a Service Booking Request, and then we can lodge the Service Booking, they accept, and then we can make claims for payment. 

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Categories: Owning SDA, SDA Income

Our members typically make 2 distributions each month. The mid-month distribution will usually be the one that includes the SDA payments from the claim lodged on the 1st of the month … this is assuming the NDIA pays within 10 days as they are supposed to and that nothing else has happened to cause a participants plan to require a new service booking.

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Categories: Owning SDA, SDA Income

The RRC (Reasonable Rent Contribution) is the only contribution paid directly by the tenants. This is paid fortnightly but if the participant doesn’t have capacity this is paid on their behalf by the Public Trustee so it can have the all the difficulties that come with dealing with yet another Government Department.  

SDA Payments are obviously not paid by Participants – See SDA Payments 

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0
Categories: Owning SDA, SDA Income

Pre-certification helps the enrolment team. Apart from this there is nothing else that can be done. The NDIA is paying you above market rent to allow for these delays.  

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0
0

SDA Providers are only required to report quarterly. SDAPA Members typically send monthly statements.  

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0

Yes, SDAPA Members send these out as soon as possible after the EOFY.  

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0
Categories: Owning SDA, SDA Income

Our Members are still seeing a wide range of results. Anything from 7 days to 7 months is still common. There is no way to predict. It can be said however that the more recent lodgements are typically going through faster.

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Category: Owning SDA

Our Members do regularly make complaints to the head of the enrolments team. However, they are only allowed to escalate matters after 4 months. Due to the volume of sites that our Members lodge for enrolment every month they do have personal contacts for senior people who solve problems quickly … however, they will not look at anything until it has been in the system for 4 months. Complaints After 4 months they can complain to a senior NDIS housing manager for all of the State. This person, even at their senior level, has no way of contacting the Planner who is responsible. This person does get results for us every time BUT it is still a 4-6 week process – from when the complaint is made.

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Categories: Owning SDA, SDA Outgoings

You are being paid far above market for a reason. Covering non-standard outgoings for people living well below the poverty line is part of this reason.  

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Three reasons.  

1.     Your local mower man does not have to comply with the requirements of the NDIA and unless they did comply a compliant SDA Provider could not use them. Every person a compliant SDA Provider sends on-site MUST comply with ALL the same requirements as Registered NDIS Providers. This includes the mower man and the compliance overhead means the job will cost more.  

2.     The nature of SDA is that the trades a compliant SDA Provider sends to your house are not just there to get in, do the job and get out. They are often the only visitor the participant will have that day. So whether it’s a gardener, cleaner, plumber or electrician, all trades should be selected based on their ability to not only do the job but also provide great customer service to the participant. This may mean having a chat while they work; involving the participant in the job; and actually spending the time to ask the participant how they want their home to look.  

3.     If your participant is happy they will stay longer. The extra cost of fully compliant gardeners who provide Real SDA level customer service, is tiny in comparison to loss of income you suffer when participants leave. Members of the SDAPA understand this and their extremely low vacancy rates reflect this.

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Categories: Owning SDA, SDA Outgoings

Internet access to all properties has always been required indirectly in order to meet compliance requirements. As of July 01 2021 it has been made an explicit requirement of SDA Registration to provide high speed internet access to all SDA Participants.  

You are being paid far above market for a reason. Covering non-standard outgoings for people living in poverty is part of this reason.  

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1
Categories: Owning SDA, SDA Outgoings

You are required to provide high speed WiFi internet access as part of the SDA rules. A fully compliant SDA Provider will have to charge you a fee per month for providing this service. If your SDA Provider is not doing this you should ask why.

SDA Providers who achieve SDAPA Gold accreditation will have a monthly tech charge that also includes a comprehensive package of IT support and maintenance.  

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0
Categories: Owning SDA, SDA Outgoings

Normally smoke alarm service is annually. For MTA and SDA agreements these need to be tested for each new tenant. If you have 3 SDA tenants move in at different times, then there has to be 3 inspections.  

You are being paid far above market for a reason. Covering non-standard outgoings is part of this reason.  

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0
0
Categories: Owning SDA, SDA Outgoings

Why am I paying for  xyz  maintenance item? Isn’t this a tenant responsibility?  

If your tenant was paying you standard rental rates then yes. But your SDA tenant is paying many, many times above market. For instance, a 2 participant HPS house is about 4 times this at approximately $2,000/ week.  

You are being paid far above market for a reason. Covering some non-standard outgoings for people living in poverty is part of this reason.  SDAPA Members have low vacancy rates in part because they do this – participants are voting with the feet.

SDAPA Members are encouraged to itemise each small outgoing in your statements only so that you get the benefit of knowing how you have helped your tenants. If you would prefer to not know ,that is ok, they can give you a total for outgoings that is not itemised.  

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SDA Income (9)

Categories: Owning SDA, SDA Income

No. The Lease used by SDAPA Members is a flow through head lease. The terms of the lease are that you are paid all of the income, minus management fees and all outgoings.  

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0
0
Categories: Owning SDA, SDA Income

SDAPA Members make a claim to the NDIA each month in areas. The NDIA then pays within 10 days of invoice. This money along with the RRC from the Tenant are paid directly into the Members Trust Account for each State and Territory. This is then distributed to owners minus outgoings. Owners receive a Trust Statement each month.     

See “SDA Payments” 

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Income

When are SDA payments made? 

The NDIA treats SDA payments the same as all other invoices they pay. So unlike traditional rent which is paid in advance all SDA payments can only be invoiced AFTER the service has been delivered. So at the end of each month our Members lodge a claim for payment. The NDIA then has 10 days to pay.  

What is the process you have to follow for SDA Payments? 

So the NDIS has finally provided an enrolment number for your dwelling.   

This means you are getting close to getting SDA payments.  

From here your SDA Housing Provider will: 

  1. Provide the number to the NDIS planner; 
  2. The NDIS planner uploads a quote request to our provider portal – sometimes a planner will want a letter of offer before creating this; 
  3. SDA Housing Provider provides a quote for the SDA 
  4. The NDIS accepts this quote (assuming it’s at the price guide limit so they have to) 
  5. The NDIS then issues a request for a service agreement; 
  6. SDA Housing Provider gives them the service agreement; 
  7. SDA Housing Provider can finally upload invoices for the SDA. 
  8. These are checked by the SDA Payments team and payments flow to our Members Trust Account usually within 10 days of the end of month.  
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0
0

An SDA tenant participant has been in my property for a long time. Why haven’t I been paid yet? 

This is the reality of SDA ownership. You have the benefits of higher income and security of payments but you also have the downside. The major downside of any dealing with a government department is time and inefficient (slow) systems.  

Holdups can happen on one or all of the following 3 stages. The property registration; the participants SDA application, registration and approval; and the NDIS Planners Service Booking stage.  

Property Registration – The SDA Housing Provider lodges your property for enrolment as soon as the build er and certifier supply us the documents we need. From here they are following up regularly but little can be done but to ensure the property is correctly displaying in our NDIS Portal. 

SDA Application for the Participant – The SDA Housing Provider (who is a member of the SDAPA) will only move an SDA Participant in before their approval has come through in very special cases where there is no risk of approval being denied. In this case you are getting the RRC (or maybe MTA payments) instead of an empty property.  

NDIS Planners Service Bookings – This is another situation where a good planner will have the process complete within a day but others could take weeks. Dealing with these frustrations is why you need a very experienced SDA Provider who knows when to wait and when to push. SDAPA Members are the best in the industry.

The SDA Housing Provider doesn’t get paid until you do so you can be assured they are doing all they can to speed up payments. We understand the temptation to email or call our Members every week for updates but all this does is slow them down. If you have not had an update it is because they are still waiting for an update to share.  

Did you find this FAQ helpful?
0
1
Categories: Owning SDA, SDA Income

Our members typically make 2 distributions each month. The mid-month distribution will usually be the one that includes the SDA payments from the claim lodged on the 1st of the month … this is assuming the NDIA pays within 10 days as they are supposed to and that nothing else has happened to cause a participants plan to require a new service booking.

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Income

The RRC (Reasonable Rent Contribution) is the only contribution paid directly by the tenants. This is paid fortnightly but if the participant doesn’t have capacity this is paid on their behalf by the Public Trustee so it can have the all the difficulties that come with dealing with yet another Government Department.  

SDA Payments are obviously not paid by Participants – See SDA Payments 

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Income

Pre-certification helps the enrolment team. Apart from this there is nothing else that can be done. The NDIA is paying you above market rent to allow for these delays.  

Did you find this FAQ helpful?
0
0

SDA Providers are only required to report quarterly. SDAPA Members typically send monthly statements.  

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Income

Our Members are still seeing a wide range of results. Anything from 7 days to 7 months is still common. There is no way to predict. It can be said however that the more recent lodgements are typically going through faster.

Did you find this FAQ helpful?
0
0

SDA Outgoings (6)

Categories: Owning SDA, SDA Outgoings

You are being paid far above market for a reason. Covering non-standard outgoings for people living well below the poverty line is part of this reason.  

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0
0

Three reasons.  

1.     Your local mower man does not have to comply with the requirements of the NDIA and unless they did comply a compliant SDA Provider could not use them. Every person a compliant SDA Provider sends on-site MUST comply with ALL the same requirements as Registered NDIS Providers. This includes the mower man and the compliance overhead means the job will cost more.  

2.     The nature of SDA is that the trades a compliant SDA Provider sends to your house are not just there to get in, do the job and get out. They are often the only visitor the participant will have that day. So whether it’s a gardener, cleaner, plumber or electrician, all trades should be selected based on their ability to not only do the job but also provide great customer service to the participant. This may mean having a chat while they work; involving the participant in the job; and actually spending the time to ask the participant how they want their home to look.  

3.     If your participant is happy they will stay longer. The extra cost of fully compliant gardeners who provide Real SDA level customer service, is tiny in comparison to loss of income you suffer when participants leave. Members of the SDAPA understand this and their extremely low vacancy rates reflect this.

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Outgoings

Internet access to all properties has always been required indirectly in order to meet compliance requirements. As of July 01 2021 it has been made an explicit requirement of SDA Registration to provide high speed internet access to all SDA Participants.  

You are being paid far above market for a reason. Covering non-standard outgoings for people living in poverty is part of this reason.  

Did you find this FAQ helpful?
0
1
Categories: Owning SDA, SDA Outgoings

You are required to provide high speed WiFi internet access as part of the SDA rules. A fully compliant SDA Provider will have to charge you a fee per month for providing this service. If your SDA Provider is not doing this you should ask why.

SDA Providers who achieve SDAPA Gold accreditation will have a monthly tech charge that also includes a comprehensive package of IT support and maintenance.  

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Outgoings

Normally smoke alarm service is annually. For MTA and SDA agreements these need to be tested for each new tenant. If you have 3 SDA tenants move in at different times, then there has to be 3 inspections.  

You are being paid far above market for a reason. Covering non-standard outgoings is part of this reason.  

Did you find this FAQ helpful?
0
0
Categories: Owning SDA, SDA Outgoings

Why am I paying for  xyz  maintenance item? Isn’t this a tenant responsibility?  

If your tenant was paying you standard rental rates then yes. But your SDA tenant is paying many, many times above market. For instance, a 2 participant HPS house is about 4 times this at approximately $2,000/ week.  

You are being paid far above market for a reason. Covering some non-standard outgoings for people living in poverty is part of this reason.  SDAPA Members have low vacancy rates in part because they do this – participants are voting with the feet.

SDAPA Members are encouraged to itemise each small outgoing in your statements only so that you get the benefit of knowing how you have helped your tenants. If you would prefer to not know ,that is ok, they can give you a total for outgoings that is not itemised.  

Did you find this FAQ helpful?
0
0

SDA Property Management (7)

I have heard other SDA Housing Providers “outsource” the property management to standard rental management company? Is this what SDAPA Members do?  

No, absolutely not! The SDA Housing Provider is solely responsible for ensuring the safety of your tenants the and compliance of your investment. Unless the rental management company is also a Registered Housing Provider, management can NOT be outsourced! SDAPA Members manage every aspect of your investment … as they are required to. The minute they lose their compliance you lose your income.  Non-compliance on the part of your SDA Housing Provider should be a major concern to EVERY investor!

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0
1

No. The only terms you have for termination are non-performance due to extended vacancy. This is required to ensure the long term continuity of housing for participants. If the head lease were terminated the SDA Agreements with the tenants would also be void leaving them completely exposed. 

If there were to be an extended vacancy, we would be supporting termination by our Members. The reason our Members spend so much time on site selection and design is to prevent this from happening. They make no money from empty houses.  

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0
2

This is an exclusive provision that SDAPA Members have for their Participants. Ask your SDAPA Member for details.

Did you find this FAQ helpful?
0
0

An SDA tenant participant has been in my property for a long time. Why haven’t I been paid yet? 

This is the reality of SDA ownership. You have the benefits of higher income and security of payments but you also have the downside. The major downside of any dealing with a government department is time and inefficient (slow) systems.  

Holdups can happen on one or all of the following 3 stages. The property registration; the participants SDA application, registration and approval; and the NDIS Planners Service Booking stage.  

Property Registration – The SDA Housing Provider lodges your property for enrolment as soon as the build er and certifier supply us the documents we need. From here they are following up regularly but little can be done but to ensure the property is correctly displaying in our NDIS Portal. 

SDA Application for the Participant – The SDA Housing Provider (who is a member of the SDAPA) will only move an SDA Participant in before their approval has come through in very special cases where there is no risk of approval being denied. In this case you are getting the RRC (or maybe MTA payments) instead of an empty property.  

NDIS Planners Service Bookings – This is another situation where a good planner will have the process complete within a day but others could take weeks. Dealing with these frustrations is why you need a very experienced SDA Provider who knows when to wait and when to push. SDAPA Members are the best in the industry.

The SDA Housing Provider doesn’t get paid until you do so you can be assured they are doing all they can to speed up payments. We understand the temptation to email or call our Members every week for updates but all this does is slow them down. If you have not had an update it is because they are still waiting for an update to share.  

Did you find this FAQ helpful?
0
1

SDA Providers are only required to report quarterly. SDAPA Members typically send monthly statements.  

Did you find this FAQ helpful?
0
0

Yes, SDAPA Members send these out as soon as possible after the EOFY.  

Did you find this FAQ helpful?
0
0

Three reasons.  

1.     Your local mower man does not have to comply with the requirements of the NDIA and unless they did comply a compliant SDA Provider could not use them. Every person a compliant SDA Provider sends on-site MUST comply with ALL the same requirements as Registered NDIS Providers. This includes the mower man and the compliance overhead means the job will cost more.  

2.     The nature of SDA is that the trades a compliant SDA Provider sends to your house are not just there to get in, do the job and get out. They are often the only visitor the participant will have that day. So whether it’s a gardener, cleaner, plumber or electrician, all trades should be selected based on their ability to not only do the job but also provide great customer service to the participant. This may mean having a chat while they work; involving the participant in the job; and actually spending the time to ask the participant how they want their home to look.  

3.     If your participant is happy they will stay longer. The extra cost of fully compliant gardeners who provide Real SDA level customer service, is tiny in comparison to loss of income you suffer when participants leave. Members of the SDAPA understand this and their extremely low vacancy rates reflect this.

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0
0