For the landlord, empty rental properties are a nightmare. Vacant periods reduce income, but costs remain fixed, providing a dual financial hit that can wreak havoc on your investment yields. To protect your rental portfolio and keep it as profitable as possible, you need to understand how best to decrease or do away with these gaps between tenancies. For help from a Gloucester Letting Agency, contact https://www.tgres.co.uk/
The Real Cost of Vacant Properties
Not letting the property and a few void periods constitutes way more than simply lost rent. Irrespective of occupancy, mortgage payments and interest costs must be covered along with insurance, council tax utilities and maintenance to name just a few. Combine this with the risk of your property falling into disrepair and vandalism, void periods can become a major headache requiring immediate support.
Prevention Starts Early
The most effective void management starts long before your present tenant hands in their notice. Respond to all inquiries and repair requests quickly to keep good tenants. This also means the lack of void period — a happy tenant will renew any time. In the event that tenants do decide to leave, early notice periods provide you with as much time as possible for finding replacements.
When you get notice: market your property right away with professional photographs, competitive pricing and comprehensive online listings; potential tenants flock to your occupied property causing smooth transitions between tenancies.
Strategic Pricing Decisions
Take the time to research clearly local rental rates and offer clear pricing at competitive prices from day one. It may be more lucrative to have a £50 per month lower offer that gets you in with tenants two weeks earlier rather than wait until next week and another higher rent yet end up covering void costs.
Renting incentives are one of the best ways to draw in good tenants fast, which usually means renting for a minimum deposit. It is typically cheaper to offer these short-term concessions than having an extended void period.
Efficient Turnaround Processes
Improve the way you clean for new tenants. Arrange for professional cleaning, confirm that repairs are made as needed and renew safety certificates after the tenants have moved out. Efficiently coordinate a team of tradespeople to get the job done in days instead of weeks.
If so, you may also want to establish a preferred contractor list for the basics (painting, carpet cleaning, minor repairs). Better response rates and lower bids are secured with long established relationships.
Professional Support
Good letting agents have knowledge of the local market and tenant demand, making them more likely than individual landlords to find new tenants. This can be a shrewd investment given that their existing marketing channels and tenant database have the capability of greatly reducing void periods.
