Recently published figures from a residential lettings index reveal that the average landlords’ portfolio is very small. Only 6% of landlords were found to own more than one rental property.
But a study by the National Landlords Association shows that 90% of private landlords do not factor in the financial impact of void periods when letting their property. When it comes to covering the cost of rental void, 17% of landlords with just one rental property said they used their own savings or personal resources, while 19% use their day job earnings. A surpringsly high 16% said that they just accepted that their properties had become void, taking no action to get them occupied again.
Just over a third (34%) of respondents reported having had a void period in the last 12 months.
The results suggest that a lot of landlords are entering into lettings without a full grasp of their business. The rapid growth of the private rented sector has been a massive draw for investors looking for an opportunity to gain a steady income source, but inevitably, some leap without looking.
It is always a good idea to budget for void periods and missed rental payments. Thorough tenant checks are also recommended in order to minimise the risk of non-payments.
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