Void periods are one of the most costly challenges a landlord can face, but simple changes can help to reduce them and their impact.
Why are void periods so costly? So far this year, rental properties across England were empty for 24 days, which amounts to around £1,135 in lost income when based on an average monthly rent of £1,438.*
That gap in rent is a real drain on returns, and while some downtime between tenancies is unavoidable, the right approach to managing your investment can significantly reduce how often it happens - and how long it might last when it does.
What is a void period?
A void period is a stretch of time when a rental property sits empty between tenancies, with no tenant in place to move in and therefore no rental income.
How much can void periods cost?
Void periods cost an average of £1,135* per stretch in lost rent. However, the cost of having an empty property is in reality higher than that.
While lost rental income is the most obvious impact, you also need to consider the rolling costs the property will still incur, such as:
- Council tax
- Mortgage payments
- Utilities
- Buildings and contents insurance
- Maintenance and refurbishment
The regular outgoings of the property will remain, without an income to cover the costs. So, not only are you losing income but your annual returns also takes a dent.
Void periods and the Renters’ Rights Act
Changes brought in with new legislation through The Renters’ Rights Act have impacted how some landlords may experience void periods and how to best manage them.
The abolition of fixed-term tenancies has caused the biggest impact, as this means tenants can give two months' notice at any point - which removes the landlord's ability to predict and prepare for when a renewal window is upcoming.
The best way to counteract these changes is by engaging in proactive tenant management through good communication. Our fully managed service can help guide best practice for this, find out more here.
How to minimise void periods
While void periods are inevitable at some point, there are simple and strategic ways to reduce them so the impact to your returns are minimal.
- Start marketing early: the earlier you market your property, the sooner you’ll find the next tenant to move into your property, minimising the time it will be empty. It's better to start marketing as soon as your current tenant serves notice.
- Price realistically: ensure you price your property strategically, taking into account the current market and what tenants are able to and likely to pay. Overpriced properties are the biggest cause of extended void periods. Get an expert valuation of your property before listing it.
- Keep good tenants: it may seem obvious, but retaining good tenants once placed is the best strategy to reduce void periods. Consider renewal incentives, be responsive to any maintenance required and maintain a relationship either directly or through an agent.
- Work with a letting agent: making the most of local experts like us, with lists of tenants looking for their next property means you can have a tenant lined up to move in before your current tenant moves out.
- Present the property well: as well as marketing quickly, it’s just as important to market professionally. Take good quality photos with accurate listings and book in viewings promptly and be ready to answer any queries.
How a letting agent can help
A good letting agent can help to streamline the process of finding a new tenant to reduce void periods in your investment. From proactive marketing to a pipeline of pre-qualified applicants ready to view and move in - we can help you to keep the gap between tenancies as short as possible.
Our local expertise means we know your market, your competition and what tenants in your area are looking for. That knowledge, combined with our managed turnaround process, means your property spends less time empty and more time earning.
