Why property and tenancy matters for SIL providers in 2026
Supported Independent Living (SIL) is one of the most complex and scrutinised NDIS support categories. Unlike most disability supports, SIL places providers in the dual position of being both a support service and — in many arrangements — a landlord or sub-landlord. The NDIS Commission's strengthened Practice Standards framework, progressively taking effect through 2025 and 2026, makes the separation between housing control and support delivery a live compliance issue rather than a theoretical concern.
Providers who mismanage the property and tenancy dimension risk enforcement action from the NDIS Commission, complaints from participants and their advocates, potential banning orders, and — critically — harm to the people they support.
The foundational principle: housing rights belong to the participant
The NDIS Practice Standards and the NDIS Code of Conduct both anchor SIL compliance in the principle that participants have the right to make choices about their own lives, including where they live, who they live with, and how their home is organised. This principle directly shapes how a SIL provider must approach property and tenancy.
Key obligations flowing from this principle include:
- Participants must hold legally enforceable occupancy rights — ordinarily a residential tenancy agreement — in their own name or through a properly authorised arrangement.
- Providers must not use control over housing to coerce, restrict, or unduly influence participant choice about supports, support workers, or daily life.
- Exit from accommodation must be separated, in practice as well as on paper, from exit from support services.
- Participants must be able to end a support arrangement without automatically losing their home.
Step-by-step: setting up compliant SIL tenancy arrangements
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Determine the tenancy model
There are three common models in SIL: (a) the participant rents directly from a private landlord or Specialist Disability Accommodation (SDA) provider and the SIL provider supplies only supports; (b) the SIL provider holds the head lease and sub-leases to participants; and (c) the SIL provider owns the property. Each model carries different compliance obligations. Where the SIL provider is also the landlord or head-lessee, the potential for conflict of interest is highest and requires the most robust governance.
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Issue enforceable occupancy agreements
Every participant must receive a written agreement that clearly defines their occupancy rights. This should align with the residential tenancy legislation of the relevant state or territory. The agreement must specify rent or occupancy contribution, notice periods, the participant's rights to have guests, and how disputes will be handled. Occupancy agreements must not contain clauses that remove rights otherwise guaranteed by the applicable tenancy Act.
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Separate the support agreement from the occupancy agreement
These must be two distinct documents. A SIL provider must not make occupancy contingent on using the provider's own support services. The NDIS Commission looks specifically for evidence that participants were informed — and genuinely able to exercise — the right to change support providers without losing their home.
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Conduct and document a property habitability assessment
Before any participant moves in, document that the property meets basic habitability requirements: structural soundness, working utilities, appropriate fire safety equipment, accessible bathrooms and egress, and suitability for any individual mobility or health needs. This assessment should be retained and updated at least annually, or following any significant property event.
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Implement a property maintenance policy
Providers must have a documented process for logging, triaging, and responding to maintenance requests. Urgent repairs affecting safety must be attended to promptly. The policy should specify response timeframes, how participants can report issues, and escalation pathways if the landlord (where separate from the provider) is unresponsive.
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Address shared living arrangements transparently
Most SIL settings involve multiple participants sharing a dwelling. Providers must document how decisions are made about shared spaces, household rules, and how conflicts between residents are managed. House rules must not constitute an unlawful restriction of liberty and must not be used as de facto restrictive practices.
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Plan for participant exit and transitions
The provider must have a documented process for what happens when a participant chooses to leave, or when the provider gives notice. This includes adequate notice periods, assistance with finding alternative accommodation, and safeguards to prevent homelessness. Under no circumstances should a participant's support funding or plan management be used as leverage in a housing dispute.
What NDIS quality auditors check in the property and tenancy domain
When a registered SIL provider undergoes a certification or verification audit, auditors will look for evidence across several areas:
| Audit focus area | Common non-conformances |
|---|---|
| Occupancy agreements in place and legally compliant | No written agreement; agreement written by provider contains clauses stripping tenancy rights |
| Separation of housing and support contracts | Single document combines tenancy and service agreement; exit clauses linked |
| Participant understanding of rights | No accessible-format version of agreements; no evidence participant was supported to understand their rights |
| Conflict of interest governance | Provider owns property, holds head lease, and provides all supports with no independent oversight mechanism |
| Maintenance records and habitability evidence | No maintenance log; overdue repairs documented but not actioned; no record of initial property assessment |
| Transition and exit planning | No documented process; participants unaware of options; exit notice periods shorter than state tenancy law minimum |
Conflict of interest: the 2026 flashpoint
The strengthened NDIS Practice Standards place heightened emphasis on identifying, documenting, and managing conflicts of interest. For SIL providers who also control the housing, this is the area drawing the most scrutiny in 2026 audits.
The NDIS Commission's guidance indicates that providers must:
- Maintain a conflict of interest register that includes the housing arrangement as a standing entry.
- Document how decisions affecting the participant — particularly decisions about who they live with, or changes to the property — are made independently of the provider's commercial interests.
- Ensure participants have access to independent advocacy when housing-related disputes arise.
- Demonstrate that the pricing of accommodation contributions is reasonable, transparent, and not inflated to cross-subsidise support services.
SDA and SIL: clarifying the boundary
Where participants live in Specialist Disability Accommodation (SDA), the SDA provider is responsible for the physical dwelling and the SIL provider delivers the in-home supports. In these arrangements, the SIL provider generally has fewer direct property obligations — but must still ensure the participant's occupancy rights are protected and must coordinate with the SDA provider on maintenance issues that affect support delivery. Providers operating as both SDA and SIL must manage this dual role with particular care, as the conflict of interest risk is compounded.
Template: key clauses for a compliant SIL occupancy agreement
The following clause types should appear in any SIL occupancy agreement. This is illustrative guidance, not legal advice — always seek qualified legal review before finalising agreements.
- Occupancy commencement and duration: clearly states start date and whether fixed-term or periodic.
- Occupancy contribution: amount, payment frequency, and how changes to the contribution are notified.
- Resident rights: explicit statement that the resident retains all rights under the relevant state/territory Residential Tenancies Act.
- Independence of support arrangement: states that the occupancy agreement is separate from any service agreement and that the resident may change support providers without affecting occupancy.
- Notice requirements: notice periods for both parties consistent with applicable tenancy legislation.
- Maintenance and repairs: process for reporting, timeframes for response, and who bears costs.
- Dispute resolution: outlines internal process and participant's right to access external advocacy or the relevant tenancy tribunal.
Getting your documentation audit-ready
The property and tenancy domain sits alongside incident management, restrictive practices, and worker screening as one of the areas where documentation gaps most frequently lead to non-conformance findings. Providers preparing for 2026 registration or renewal should review every dwelling they operate and confirm each of the above steps is evidenced in writing.
If you are building or refreshing your compliance document suite, the 74-document audit-ready SIL compliance kit available through ndiscompliant.com.au includes occupancy agreement templates, property assessment checklists, conflict of interest registers, and transition planning policies — all structured to the current NDIS Practice Standards.
Important: This article provides general guidance about NDIS compliance requirements. It is not legal or professional advice. Requirements may change as the NDIS Commission updates its policies and Practice Standards. Always verify current requirements with the NDIS Quality and Safeguards Commission or a registered NDIS consultant before making compliance decisions.