Private landlords unprepared for voids
Published by Max Salsbury for 24dash.com in Housing
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The vast majority of private landlords (90%) say they don’t factor in the financial impact of voids when letting their property, new research has revealed.
And the National Landlords Association's study found that when it comes to covering the cost of a rental void, 19% of landlords with just one property use their day job earnings, while 17% said they used their own savings or personal resources.
But 16% of landlords said they just accepted that their properties had become void and didn't do anything about it.
Among those who responded to the research, 34% said they had experienced a void period in the last 12 months.
According to the NLA, the findings suggest that a significant number of landlords may not have a business plan in place when they start letting.
“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.”