How to minimise void periods and maximise profits
Any time a property is unoccupied, it delivers no income, yet still generates running and finance costs, so it's critical to minimise void periods where possible. The average void period in the UK was 22 days, but due to the impact of Covid-19, many landlords have been experiencing longer voids.
As a result of our huge marketing exposure and our unique way of handling tenancies due to come to an end, we're proud to say our average void period is just three days per year! With this in mind, we think we're well-equipped to offer some expert advice on how to prevent void periods and have a plan in place.
Be willing to compromise & keep rents competitive
With average void periods costing an average of 4.9% of gross annual rental income, it usually makes financial sense for landlords to compromise on rents to reduce turnover and keep good-quality tenants for longer.
Whilst it might be tempting to increase rent to maximise income, it might end up leading to a lengthy void period which ultimately costs you more in lost rent if your tenant ends up looking for somewhere more affordable. Make sure the price is competitive, rather than too inflated to tempt new tenants to sign up.
We keep up to date with the current market value for all types of rental properties in throughout Cardiff and are always here to advise on what could be a reasonable increase that will work in your favour.
Make sure your property looks the part
A lot of landlords have realised they need to move with the times in order to guarantee tenants for years to come. If you haven’t noticed it already, the Cardiff lettings market has changed in recent years. Prospective tenants have more choice and now that the market is so competitive, a shabby property with no prospect of upgrading just won't cut it.
Keeping the property well maintained with modern, matching furniture should be regarded as an investment for the future. The property will lend itself nicely to striking marketing photos and videos and good quality tenants will want to stick around and happily recommend it to others when they leave.
Our experienced team of Property Advisors regularly advise landlords on how best to ensure their property appeals to the mass-market. It's definitely worth keeping some money aside for suggested upgrades that will ultimately increase profitability. If you do find yourself with a void period, it's an excellent opportunity to fix any problems, replace carpets and update the decor - you may even be able to increase the rent after doing this as well.
Market quickly and effectively
One of the biggest reasons that our void periods are so low is that we're extremely on the ball when it comes to marketing every property. Once tenants give notice to leave, we'll start advertising on all property portals or reaching out to our database to get tenants lined up ASAP.
Our marketing packages have most recently been enhanced by our professional video tours. We have recruited a full media team who will go all out when it comes to promoting your property in its best light. As soon as your property goes on the market, tenants will be able to view it in such full detail that it's likely they will take the property after seeing the marketing video alone.
We found last year that 90% of properties were rented off the back of the video and though lockdowns are easing, online house-hunting is definitely here to stay.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
