How to reduce the risk of lost income due to void periods
Void periods are an inevitability, to a certain extent. That’s the bald truth of the matter. But for landlords who need to maximise returns on their investment property, that’s not always good enough. It’s for this reason that Assetgrove offers a guaranteed rent scheme to landlords in London.
How does rent guarantee work?
Rent guarantee provides a landlord with an assurance they will receive a rental income on a monthly basis, even if their property is vacant. Through our scheme, we offer a fixed monthly rent for up to five years – which means no loss of income or voids.
However, for landlords without rent guarantee, void periods are possible. So what are void periods, and what do they mean for landlords who don’t have their rent guaranteed?
What is a void period?
In a nutshell, a void period is a time when the property is empty, and therefore not generating any rent for the landlord. Even though there is no tenant, bills and other costs will still apply, such as mortgage repayments. As a landlord, you will want to keep void periods to a minimum for as long as you let out the property.
Reducing the risk of voids
In reducing void periods, landlords without rent guarantee can try the following:
- Offer longer term rentals – naturally with a longer term rental you expect fewer voids, simply because these don’t end so often. When a tenancy ends, there’s always a risk you could have an empty property for days, weeks or even months. By offering short-term rentals to tenants, you’re more likely to experience a time when the property is empty and therefore not generating you an income.
- Invest in repairs and maintenance – an attractive, functioning property will encourage a tenant to remain in the property for longer. If you invest in your property, then you’ll have a place that will both retain current tenants and attract new tenants.
- Set a realistic rent – the rent needs to be proportionate to the rents being charged by landlords with similar properties in the area. The rent you set needs to be realistic, and seen as realistic by tenants, as this will encourage them to rent the property.
The one benefit of a void period
Yes, there is one. If the property needs major maintenance work carried out, or the carpets need replacing throughout the property, or the walls and ceilings need redecorating, then these jobs are easier to carry out if the property is vacant. If work like this needs doing, you can arrange for it to be completed while the property is between tenants.
It all comes back to rent guarantee
Why worry about voids when you can enjoy a fixed monthly rent for up to five years? With Assetgrove, there’s no commission nor management fees to pay. Our scheme simply allows you to get on with your life and not worry about voids.