PHOTO: Eddie Dilleen. DAILY MAIL
A multimillionaire in property, Eddie Dilleen, attributes much of his wealth to acquiring and leasing affordable homes. He claims that a staggering 80 percent of his property portfolio is undervalued compared to market rates.
At 32 years old, Dilleen is finalizing deals on over 100 properties and asserts that approximately 80 percent of these are rented below their potential value. “I refrain from imposing excessive rent hikes,” he explains. “Around 80 percent of my portfolio is undervalued in terms of rental income. I could easily raise rents by $20, $30, or $40 per week if I desired.”
Eddie Dilleen bought this six bedroom duplex for $640,000 in Greater Brisbane last year, with its last publicly listed rental price at $233/W each in 2015.
His reluctance to raise rents excessively is partially driven by empathy but largely stems from pragmatic considerations as a landlord, particularly his aversion to dealing with vacancies. “Losing a tenant can result in vacancies, which incur additional costs such as letting fees,” he notes. “So, if the shortfall is relatively small – say $20 to $40 per week – it’s not a significant concern.”
Dilleen now entrusts property managers with overseeing all rental matters. “I leave it to property managers to conduct market analyses and adjust rents accordingly,” he says. “I’m content for rents to remain slightly below market rates. It doesn’t bother me.”
This three bedder at Greenacre in Greater Sydney was bought for $875,000 during the pandemic in 2021, with its rental listed at $520/W in 2020.
However, he draws a line, asserting that he won’t tolerate significant discrepancies between current rents and market rates. “If a property is renting for $300 a week when it should be $500, that’s clearly unreasonable,” he states. “But if the potential increase is minimal and risks driving away tenants, I prefer to maintain the status quo.”
Eddie Dilleen has signed off to become landlord to all the units behind him in this selfie taken in Perth.
Dilleen cautions that while rents have surged in recent years, inflation continues to exert upward pressure. “It’s a simple matter of supply and demand,” he remarks. “Rents will rise regardless of whether landlords choose to adjust them. If they opt not to, others will.”
SOURCE: NEWS.COM.AU
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