Angels Sales & Lettings
Why landlords must work hard to keep void periods at a minimum
03 July 2019 626 Views
Void periods are one of landlords’ most dreaded occurrences. This is because you are not only failing to collect rental income, but you could also still be paying additional costs such as your buy-to-let mortgage and landlord insurance.
It is therefore critical to minimise void periods where possible, especially if your buy-to-let properties are single tenancy.
Research by Simply Business revealed that 35% of UK landlords experienced a void period in the first quarter of 2018. During a void period, landlords have to finance their buy-to-let mortgage through other means while keeping the following in mind:
Paying utilities and council tax
Keeping up to date with landlord insurance premiums
Re-advertising the property and finding/vetting new tenants
Producing new tenancy agreements
Paying for any mandatory checks that must be made between tenancies
Carrying out maintenance and redecoration work
With these factors to consider, it’s easy to see that void periods can become very expensive for landlords.
While the end of a tenancy is inevitable – people eventually move on or buy their own home – there are things you can do to extend tenancies and minimise the possibility of damaging void periods.
For example, it’s worth ensuring that your property is appealing to tenants; this means investing in bathrooms and kitchens and providing a high standard of furnishings.
It’s also important that you inspect your property regularly and undertake maintenance work early to avoid expensive repairs which require the property to be vacant.
You could also offer new tenants an incentive – a discount on the first month’s rent or a lower security deposit – to clinch a tenancy deal faster.
What’s more, if your current tenant gives notice and you can’t change their mind, consider marketing your property immediately. You could have a new tenant in just a couple of days after the previous one leaves.
Of course, while these steps can help to keep void periods at a minimum, working with a reputable local agent can make all the difference to your lettings experience.
For example, at Angels Sales & Lettings, we offer a full rental management service, which includes a rental valuation and inspection, rent collection, arranging maintenance and repairs, intensive referencing and many more.
These services will not only allow you to be on the right side of the law, but can also offer you some peace of mind, even if a void period does take you by surprise.
For more information on letting a home in areas like Enfield and Newham – from let only to full management – please get in touch with us on 0800 043 6678.
Also, to find out how much you could be generating in rent each month, you can request a free and instant online valuation today.
What do landlords need to...
Mandatory Client Money Protection –...
Four common landlord mistakes and...
Five tips for reducing void...