Home » Landlords » Majority of landlords unprepared for voids

Majority of landlords unprepared for voids

The vast majority of landlords (90 per cent) say they don’t factor in the financial impact of voids when letting their property, recent research from the National Landlords Association has shown.

The research also shows that when it comes to covering the cost of a rental void, landlords with just one property use their day job earnings (19 per cent) or their own savings or personal resources (17 per cent). Worryingly, 16 per cent of landlords said they just accepted it or didn’t do anything about it.

Portfolio landlords are more likely to cover the financial deficit, with one in four (25 per cent) saying they use profit from other rented properties. Among those landlords who responded to the research, 34 per cent overall said they had experienced a void period in the last 12 months.

The findings suggest that a significant number of landlords may not have a business plan in place when they start letting, something the NLA says is vitally important:

“It’s imperative that prospective landlords don’t underestimate what they’re getting into,” said Carolyn Uphill, Chairman of the NLA.

“We’ve always said that being a landlord is a business and to run it successfully means you have to plan for the future to make sure you avoid the pitfalls such as voids.

“We recommend budgeting for 10 months’ rent in any 12 month period to allow for missed rental payments and voids. It’s also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment.”

“As part of the NLA’s last Effective Letting campaign we have a video on our YouTube channel that provides information and guidance on voids. There are also articles on ourwebsite that can offer advice if any landlords happen to fall into voids.”

– See more at: http://www.landlords.org.uk/news-campaigns/news/majority-landlords-unprepared-voids#sthash.fmsgm87e.dpuf

Have your say on this story using the comment section below