Ensure you never miss an issue of the
real estate business bulletin
Finding tenants on Gumtree. What could go wrong?

Finding tenants on Gumtree. What could go wrong?

Mackay property investment
by Reporter 2 comments

In a town with soaring vacancy rates, you need to be flexible and innovative to secure tenants, but thinking outside the box won’t always pay dividends. 

Rhys Drake relates all the things that went wrong with his purchase in Queensland, and what he plans to do next.

“The third property I purchased was in Mackay in Queensland. I was drawn to the money that could be made in the region.

Property is a pretty simple concept and it’s easy to see how people make money from it.

I always used to read those BRW rich lists of people who have made money and how they made it. It was always either mining, property or some kind of technology thing. Mining wasn’t really my thing and technology, no I’m not really into that, so property was the way to go.

The whole process with the Mackay property wasn’t as simple as I would have liked though. There was a bit of a drawn-out process to finally settle. The builder went offsite, we had to get a new builder in and it was all just a bit convoluted. It was a bit frustrating.

When I knew it was coming up to settle – about three weeks out – I didn’t want to leave it up to the real estate agent to find me a tenant. I ended up putting a few ads up on Gumtree and doing my own advertising to get someone on board.

I actually found someone through Gumtree and I organised it all and I referred them to the NRAS people who were looking after it.

I did the right thing to get someone in for three or four months, but if the market was a lot better, I would say don’t always take the first tenant that comes on your books. Really do a stringent interview process and make sure they have good references and good prerequisites.

The tenant was properly screened and all the rest of it and everything looked good, but six or seven weeks in, they ended up doing a runner due to family issues.

They gave us the keys back, but there was a bit of damage to the place – nothing too crazy. It was just pretty standard stuff, carpets and stuff like that.

After they moved out, it sat vacant for about two or three months. It was nearly all covered by insurance, but I was out of pocket by about $1,000 once the insurance came back.

There are new tenants in there now, but because Mackay does have pretty high vacancy rates at the moment, it’s not an ideal market. The tenant who is in there at the moment is a week or so behind with their rent. They’re not exactly where I want, but the agency is working to get that back up. I wanted them to get on a direct debit plan and make up for lost weeks, and that’s in the works now.

It’s plodding along. It’s not the best. My other properties are definitely performing better.

I would say to other investors, be very picky in where you buy investment properties and always make sure you go by vacancy rates.

This one, I am going to ride out. Once the market itself picks up, I might look to sell.”

Finding tenants on Gumtree. What could go wrong?
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?