_Void periods explained: How to minimise vacancy and maximise returns

Even the best tenants don’t stay forever, and when they leave, your property will be vacant until you find a new tenant. The time in between tenants is a void period, when your property lays vacant.

A void period is an inevitability for any buy-to-let property. It could happen once a year or once a decade, but it will occur at some point. It’s worth keeping that in mind when becoming a landlord as it will affect your rental income.

The financial impact of void periods

When your property’s vacant, you won’t receive any rent. On top of that, you’re liable for costs like utility bills and council tax, as well as your mortgage, insurances, maintenance and charges. Then there’s the cost of marketing your property and recruiting a new tenant. It’s a long list of outgoings without a rental income.

When a void period goes on for an extended period of time, it can have a significant and negative impact on your finances. That impact will be apparent on your monthly cashflow and your overall annual profitability for your buy-to-let property. It’s important to calculate the likely financial impact of a month-long void period, for example. You need to ensure you have adequate finances to cover the cost of your void period.

5 strategies to minimise rental void periods

Maximising your rental returns is likely to be your goal as a landlord. Void periods detract from that goal. With a wealth of leading industry expertise and knowledge, we’re here to help you achieve your property goals. These five strategies aim to reduce rental void periods.

1. Plan ahead with lease renewals

When you find a good tenant, do everything you can to hold on to them. Treat them as you’d like to be treated. Communicate openly and respectfully with them. Or trust an experienced property manager to look after that relationship for you.

Part of that open communication should include keeping them informed of any changes coming up, like the end of their tenancy. Remind them a couple of months in advance, rather than springing it on them at the last minute. If you’ve developed a good relationship with an open dialogue, you can gauge their intentions. Do they plan to stay or move on? Either way, you have more time to prepare the next steps.

If they plan to stay, you could offer a longer lease period this time. If it was six months, try twelve on the next contract. You could even negotiate a favourable rental price in order to entice them to stay longer. After all, you’ll save the cost of a void period and finding new tenants if your existing one stays put.  

Beverley Kennard, Knight Frank Partner and Head of Lettings Operations says, “Our average tenancy length is two years and continues to increase. Over the last two years, over 80% of Knight Frank tenants served notice to end their tenancy.”

Our team of professional experts can manage that relationship and the lease negotiations for you. They’re adept at building and nurturing tenant relationships, and managing your property ongoing.

2. Maintain your property’s appeal

You need to keep your property in good, if not great, condition. If you want to secure quality tenants, your property will need to appeal to their high standards. That may mean investing in redecoration or updates of fixtures, fittings and appliances. This won’t just hook in new tenants, it’ll keep tenants there for longer.

We can arrange for qualified, insured contractors to undertake routine and reactive maintenance of your property. The Knight Frank Interiors Service will present your property in the most appealing way. They offer a rental package to style and stage your property to attract your ideal tenants.

3. Use effective marketing and property listings

To attract your ideal tenant - one that’s likely to stick around - you need to market effectively. That involves promoting your property in the places that your ideal tenant will see it, and presenting it in a way that will appeal to them. Use engaging and appropriate language. Make sure that the photos present your property in the best light and make a prospective tenant stop scrolling to look at your listing.

From our experience, we know the positive impact of high quality photos, optimised  listings and exquisite styling to present your property in the most effective way. Our professional marketing techniques deliver real results for our clients, matching properties to ideal tenants.

4. Screen tenants thoroughly

Finding somebody to rent your property can be a short term solution. Finding the right person - a reliable, well-suited tenant - is more likely to work for the longer term. It’s crucial that you undertake a comprehensive vetting process to protect you and your property. Doing this groundwork before signing a tenancy agreement will pay dividends as you’re more likely to be entering a contract with a quality tenant.

We have excellent relationships with Relocation Agents who source many of our corporate tenants. This element of matchmaking a tenant to a property is a more personal, bespoke service which is best-in-class. It has multiple benefits for both you as a landlord and your tenant.

5. Consider short term lets as an alternative

For properties in popular, sought after locations, a short let can provide a lucrative solution. It’s a way of reducing void periods at quieter times of year. You can rent out your home for a shorter time at a premium price.

We’re seeing an increased appetite for short lets currently, particularly around London and the South East. This market’s busier than ever. There’s been a notable uptick of film productions launching in the UK and they need properties for actors and crew, as well as locations. In addition, there are corporate and local short let markets.

Whilst this doesn’t bring the long term assurance of a reliable tenant on a year-long lease, it can be a lucrative way of filling shorter term gaps in tenancy. It’s an effective way to maximise the value of an empty property

We have specialist teams who work with film and TV industry clients, and those with corporate clients. That supplies us with a consistent source of short (and longer) term tenants to match with your property.

Avoid rental void periods with our support

Void periods are an inevitable, but generally unwanted, aspect of rental property ownership and management. It’s wise to factor in rental downtime into your financial planning, as it’s likely to happen.

With smart planning and strategising, you can minimise void periods and protect your rental returns. When you have a good tenant, treat them well. Communicate clearly and respectfully, and listen to their feedback. When the inevitable void period does happen, market your property professionally and exquisitely to make it attractive to your ideal tenant. We’re here to help you with that. We provide exemplary property management services that span marketing, tenant recruitment and looking after your property day-to-day.

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