Wade York started his property investment journey 12 years ago, and now has four houses across Brisbane.
But unlike some of the commentary around “greedy landlords”, he says he has always been flexible with good tenants, adding that the longer a property sits vacant, the more he loses.
He said the rent was reduced at his Springwood house after it was first advertised for $650, then dropped to $600 and was now leased for $575.
For another property, Mr York had to “personally step in” after a bad experience with a previous property manager.
“They are really good tenants and they were about to vacate as they could not afford the rent increase,” he said. “They asked the property manager if I was flexible and the property manager said no, that they had to sign.
“I didn’t know any of this and when I did, that’s when I stepped in and we were able to negotiate something that suited everyone involved.”
Mr York said that one of his investments, a house in Thornlands, was purchased during the boom, and is now on the rental market.
Due to slowing demand, he recently dropped the asking rent by $25.
He said that prior to the rapid increase in interest rates, and his properties coming off fixed rates, he had been “slightly positively geared” and putting some money into his back pocket, but that had now changed.
He added that maintenance costs and fees had also gone up, while rental demand had slowed.
“You could hold out for a higher rent, maybe $25 extra a week, but if it’s sitting vacant for weeks on end, that makes zero sense as that can cost you thousands,” he said.
He added that changes to rental laws also meant landlords had to weigh up the risks, with it becoming more difficult to evict bad tenants.
Mr York said having a great property manager and leasing agent was key.
“There is this perception that all landlords are greedy millionaires out to rip off the tenant,” Mr York.
“I am an ordinary Aussie and it is costing me to hold these properties right now.
“But this is my long term retirement plan.”
Article source: www.realestate.com.au