No landlord wants to see their property standing empty, especially given the costs that will be building as a result. Recent research suggests that void costs, which include mortgage payments as well as insurance and maintenance costs, have risen 12.9% in the last year. Regionally, the rise is more than four times as high in some locations.
Whether you are operating a standard rental property or an HMO, the challenge is the same – the longer a property or room is empty, the more it’s going to cost you.
Communicate with your tenants
A rental void means that, for whatever reason, your tenant has decided to leave and, by the nature of a void, that decision might have caught you unaware, especially as fixed-term tenancies give less visibility of when tenants might move on. Circumstances alter, so it may just be life changes that have persuaded your tenant to move elsewhere.
But equally they may have chosen to leave due to frustration with the landlord/tenant relationship. Are you talking to them regularly and encouraging them to report any issues promptly and openly?
Deal with maintenance issues promptly
In the aftermath of the Renters’ Rights Act, there is no excuse for poor property conditions. Landlords offering sub-standard accommodation will see tenants vote with their feet, so if this keeps happening to you it could be worth considering whether your maintenance and repair schedule is as proactive and responsive as it should be to keep tenants happy and in-situ.
Check tenant suitability and invest in screening
Following the Renters’ Rights Act, evicting a tenant is now much more challenging. No-fault evictions have gone, so while you can still evict tenants who exhibit legally defined anti-social tendencies your options for evictions in other circumstances is limited and must be based on legally defined grounds, such as wanting to sell with no option to relet within 12 months if you don’t.
Greater consideration should be given to who you are going to offer your rental property to in the first place – even if that may mean your property remains empty a little longer than you’d like. Is your property suited to the tenant’s needs, or is there a mismatch that could mean they, or others they may be sharing with in an HMO, will soon move on?
Tenant screening is also crucial here to ensure that you have trustworthy, legal tenants in place, since otherwise you’ll be adding legal costs to your void costs when you need to evict.
Essentially, minimising void costs is about making the right tenant decisions at the right time with the right information to hand.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. We are also an HMO specialist. Get in touch to find out more.
