Void periods: what causes them and how to shorten them
A void costs more than the rent. It costs the rent, the council tax, the utilities, and the confidence of the lender assessing the property.
A void period is a period with no tenant and no rent, and the true cost is higher than the rent alone. Council tax continues, utilities continue at least as standing charges, insurance may be affected, and the mortgage payment continues regardless. On a property let at £1,000 a month, a two-month void can cost £2,500 or more in total.
The other cost is subtler. A lender assessing a refinance will look at the rent, and a property with a history of voids supports a smaller loan. Voids reduce the capital available as well as the income.
Why voids happen
The causes are predictable and mostly within the landlord's control. The most common is pricing, followed by presentation, followed by timing.
- The rent is set above the market, so the property sits while cheaper comparables let
- The property is presented poorly — old decoration, dated kitchen, poor photographs
- The property is advertised late, after the seasonal peak in tenant demand
- The tenancy end date does not align with the market's demand cycle
- The property has a feature that narrows the market: no parking, an unusual layout, a restrictive pet policy
- Turnaround is slow, so the property sits empty between tenancies longer than necessary
Shortening a void
The single most effective step is to be realistic on the rent. A property that lets immediately at £950 has produced more income over a year than one that sits empty for two months at £1,050. The arithmetic is worth doing explicitly, because the instinct is always to hold out for the higher figure.
The second is turnaround speed. Arrange the check-out, the cleaning, the repairs and the re-marketing in parallel rather than in sequence, and have the property photographed and advertised before the previous tenant leaves where possible. A week saved on every changeover is a week's rent.
Budgeting for voids
Every rental appraisal should include a void allowance, and two to four weeks a year is a reasonable planning figure even for a property with strong demand. A property with a history of long voids should be budgeted higher, and the reason investigated before the yield is accepted.
The allowance matters most for properties that look marginal. A deal that only works with zero voids is a deal that does not work, because zero voids is not a realistic assumption over a ten-year hold.
Common questions
- How long should I expect a property to be empty between tenants?
- Two to four weeks a year is a reasonable planning assumption for a well-presented property in a location with tenant demand, covering the changeover and a short marketing period. Properties in weak rental markets or with features that narrow the tenant pool can be empty considerably longer, and the budget should reflect that.
- Should I drop the rent to avoid a void?
- Usually yes, and the arithmetic is straightforward. If a £1,050 rent means two months empty and £950 lets immediately, the lower rent produces more over the year. Calculate the annual income at each figure including the void, and the answer is normally clear.