Void Periods

Void periods sound a bit mysterious but they are something quite familiar to anyone who has been a landlord for any length of time. They are periods when the property is not generating income, almost exclusively because the last tenancy has finished and the new one hasn't yet begun.

Although you don't get a bill for a void, as you would from a plumber who has replaced your boiler, they are nevertheless a cost to you, and in all probability the biggest cost of all. Experienced landlords know that although sometimes it is worth waiting a month for the right tenant to move in, usually you are much better advised to drop the rent and get a tenant quickly. Every void month that occurs, your annual income drops by about 8%, which for a 700 pound a month property is £56. If a property is slow to attract viewings, which will nearly always mean that it is extremely slow to attract offers, it is likely that the rent is too high and should be dropped.

Sometimes a 'low start' rent can be agreed. There are many ways of reducing the headline rent level. Maybe you can return half a month's rent to the tenant if he moves in with minimum delay. Whatever you do, recognise that a competitive rent will maximise the actual term of the let and will give you a better return overall.