Every day your property sits empty is money lost. Here's how to minimise void periods and protect your rental income.
Void periods — the time your rental property sits empty between tenants — are one of the most damaging threats to a landlord's returns. Even a single month of vacancy on a property renting at £1,200 per month wipes £1,200 from your annual income and represents an 8.3% reduction in your annual yield.
The true cost of void periods
The financial damage of void periods goes beyond lost rent. You continue to pay mortgage interest, council tax (which landlords typically become liable for when a property is empty), buildings insurance and potentially utility bills for an unoccupied property. A two-month void on a typical Essex property could cost a landlord £3,000-£4,000 once all costs are factored in.
Why properties sit empty
Common causes of void periods include tenants leaving with short notice, properties needing maintenance work between tenancies, overpriced rent that deters new tenants, poor presentation and photographs, and slow or inefficient re-letting processes.
Strategies to minimise voids
The most effective strategy is starting the re-letting process before your existing tenancy ends. Serve notice to view to prospective new tenants while your existing tenant is still in residence, and aim to have a new tenancy agreement signed before the previous tenant leaves.
Price accurately: overpriced properties sit empty while correctly-priced ones let within days. Use current comparable listings and local market data to set the right rent.
Presentation matters enormously. Professional photographs taken in good natural light, a clean and well-maintained property, and an honest but compelling listing description all help to let properties faster.
The guaranteed rent solution
The most effective way to eliminate void periods entirely is through a guaranteed rent arrangement. With Arete Lettings, your rent is paid every month regardless of occupancy. You never experience a void period again. Contact us on 01268 944120 to find out what we'd offer for your property.