For most property investors the likelihood is that after you have brought your buy-to-let there will be a period of time between having a ready to go property and tenants moving in – this period is the void and you will be solely responsible for the property during this time and it can get expensive!
The first thing that you must ensure is that you budget for this period – whether you think you will have a void or not. My suggestion is have funds available for two months of expenses, that’s mortgage, any service charge, council tax, water, gas and electricity. This gives you a safety net and time where you can focus on getting your property let.
Once your budget is in place you can then get set on minimising the void. When I first started renting out property I did it all myself through adds on Gumtree and Spare Room. I had a water tight Assured Shorthand Tenancy (AST) Agreement (checked by my solicitor), registered with the deposit protection scheme and had the necessary safety procedures in place. I also had free evenings to do viewings and so was successful in getting tenants without paying agency fees. Now, to save time for myself, I use letting agents who source tenants and do all necessary paperwork. I have also found that this has minimised my void periods as agents have a list of applications which means they can fill properties quickly. Ensuring you have a good letting strategy will reduce voids, you need to decide how much time you have to spend on this (check out my blog The Process of Letting for further advice on letting properties).
To attract tenants I also find it helps to dress the property. Make the beds, add extra scatter cushions and throws. Put a bathmat down, decorate with fresh flowers, make sure all rooms smell good. Don’t go overboard and spend lots on items but aim for a sense of comfort and homeliness. Also buy neutral goods, this way you can take them out after marketing and use them in your next rental.
My final tip of advice is to price your rent to the market. Hopefully you will have an idea of rental values before purchasing the property and will have ensured yourself a profit even in worst case scenario, therefore price right. You don’t need to be the lowest price but it needs to attract interest so make it competitive but good value. A good price and great pictures of your beautifully dressed flat will go a really long way to securing tenants.
If you need any advice with budgeting for your new buy to let, dressing or pricing then do not hesitate to get in contact with NC Real Estate or follow us on Facebook or Twitter, we are always here to help!
NC
