Annoyed by a void?

Landlord and former Sunday Times Scottish Business Editor Francis Shennan explains what to do if you are struggling to find tenants

Francis Shennan

“Research the local market and make sure you are pitching the rent at the right level.”

The second half of this year began with a boom, where new tenancies increased by a fifth and rental returns rose. By August, demand was no longer outstripping supply, as flats and houses that would not sell came on to the rental market.

Void periods remain short at less than a month in most cases, however, and almost all letting within six weeks. Tenants are also staying longer. This suggests that, if you have a void, you are doing something wrong.

“It’s all about getting it right in the first place,” says Iain Sinclair, in charge of letting at Moving estate agents in Glasgow. “You want to buy where you are going to get capital growth and fairly consistent rental: not a holiday cottage in North Uist but a two-bedroom flat in the West End of Glasgow, where you will not have any voids.”

Start marketing early

Even when you have your property, you can plan ahead. At the other end of the country, June Inglis, Marketing Manager at Finders Keepers in Oxford, says: “Have it marketed before the tenants move out. If the property needs to be upgraded, arrange it so that you can tell an applicant.”

Your Assured Shorthold Tenancy agreement, or Short Assured Tenancy in Scotland, should require the tenants to allow the landlord in the last two months of the tenancy to enter and view the premises with prospective tenants.

They should also allow entry to the landlord at 48 hours’ notice, with or without workmen, to view the property and carry out any repairs or alterations.

Research the local market to ensure you are pitching the rent at the right level. Erring slightly below market rent could earn more in the long run if it reduces voids. An extra month’s income at £500 per month would compensate for four years of being £10 a month under value. Check out agents’ websites and local newspapers for comparable properties.

Agents offer the option of simple tenant-finding, which should include vetting and credit checks, or a full management service. This can cost from 8% with smaller agents to 14% if you include insurance against loss of rent. Check out agents as much as you would tenants to find out how well they work.

Furnishings may increase the rent but may not cover the cost of furniture. Families are likely to want unfurnished properties and many young professionals have acquired furniture they want to keep. Tenants with their own furniture may treat the property with more respect.

Decide which tenants your property will appeal to — corporate tenants, young professionals, families, students, etc — and fit your presentation to them. In all cases, though, rooms should be light and bright, with neutral colours.

One of my own flats, currently going back on to the market, is finished in warm, pale grey, which most valuers found a relief from the ubiquitous magnolia. Floors can have warmer colours and should have hard-wearing surfaces, such as stripped floorboards or decent laminates.

Fittings and furniture should be contemporary and unfussy, and the place thoroughly cleaned. Finish any DIY jobs, remove clutter, clean, air and freshen the property. Freshen bathrooms with new taps and cleaned grouting and kitchens with new doors on the cupboards.

Going digital

Digital photography makes it easier to get good pictures for your advert, especially online. The important views are the exterior front, kitchen, living room, bathroom, main bedroom and garden if there is one, as well as any distinguishing features. My flat, for example, looks on to the best views in the street, a small crescent with mature trees.

Your ad should summarise the property’s details and, depending on space online, each room with their dimensions. Tenants now turn to the internet first and more than three quarters of agents and landlords use it to advertise.

Check out tenants

When you select tenants, check them out thoroughly with credit and employment checks, and choose those likely to stay longest. “Have a relationship with your tenants,” says Sinclair. “Don’t just find and forget them. Vet them in a number of ways. Why are they there? If they are student nurses, how long is their course?

“If you can get a commitment for four years, you might want to pull the rent back a bit but build in an increment annually. You’ll be better off and the tenants also get a good deal.”

Back to top | Back to contents