Finding a solution to Christmas void periods
- 20th November 2014
- Buy-To-Let Property News
Landlords can structure tenancy agreements to offset problems during the quieter winter months.
Following the summer rush, landlords typically now face a quieter Christmas period with far fewer people looking to rent. The fall in demand means that void periods can become an issue in some cases.
With many tenants giving notice during the autumn and winter months, annual tenancy agreements can come up for renewal at a difficult time.
A potential solution to these problems could lie in a more careful consideration of tenancy contract details. The timing and length of agreements can prove key. Ensuring that tenants signing in October, November or December agree to an 18-month or 30-month tenancy, for example, is a good way of covering the less busy winter months. It would mean that contracts come to an end during a period of peak demand.
Stephen Ludlow, Chairman of ludlowthompson, confirmed that, “it's a good idea for landlords to think carefully about how they are structuring tenancy agreements if they want to minimise the risk of their rental property being empty or being forced to accept lower rents over the Christmas period."
While having to find new tenants over the Christmas period does increase the risk of void periods, there is still consistent tenant demand and achieving a speedy let is still a possibility.
Stephen Ludlow explains, "London is a fast-moving city and a lot of people move to the capital to start new jobs at the beginning of January. Many of these people use the weeks before starting work to look for a rental property. Sometimes landlords letting a property during the Christmas period can benefit from the fact that fewer properties are available to rent."
It's a good idea for landlords to think carefully about how they are structuring tenancy agreements if they want to minimise the risk of their rental property being empty or being forced to accept lower rents over the Christmas period.
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