How to keep a lid on rental voids in London
- 7th September 2011
- Property Tips
Even in a busy rental market, landlords can reduce the gaps between rentals by taking a few simple measures.
High demand from tenants in London means that few properties should be seeing significant void periods, when the property is empty and generating no rent.
As many landlords know, void periods can substantially reduce the profitability of a buy-to-let investment by pushing down a property’s net yield.
The good news is that by following a few simple steps, landlords can keep void periods to a minimum – or even avoid them completely.
Tips to avoid voids
- Renewals with existing tenants - Ensure you make a time timely decision on rental renewal so that notice can be served on the deadline if a relet is not taking place.
- Could the property attract a higher rent? Rents have been rising dramatically in the last year, so it might be appropriate to review the rent at renewal. ludlowthompson provides a free rent review to help landlords assess the market rate for their property.
- Two months prior to the expiry of the tenancy, landlords should send a renewal letter to the tenant to find out whether they are interested in signing a new contract.
- If the tenants do not respond, the landlord should serve notice. If they want to stay, it will encourage the tenants to sign a new contract. If they do not, the formalities are in place for a rapid change of tenant.
- If the landlord needs to find new tenants it’s important to market the property to as many potential tenants as possible to achieve a short void period, or no void at all, and a maximised rent. An estate agency that specialises in buy-to-let, like ludlowthompson, has all the marketing tools to make sure a property lets to its potential.
- Encouraging tenants to sign a two or three year tenancy agreement will cut void periods because there will be fewer tenant changeovers.
- Time your tenancy dates to seasonally busy periods: Landlords should try to time their tenancies so they will be renewing the tenancy during a busy period, such as the summer.
Void periods can substantially reduce the profitability of a buy-to-let investment by pushing down a property’s net yield.
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