Void periods between tenancies are costing landlords more than 50% extra than they did a year ago, with hundreds of pounds of rental income lost at a time when landlords are already facing rising costs.

Research by property management firm Rushbrook & Rathbone found the average cost of a void period in England has increased by 12.9% during the past year, from £1,005 to £1,135. The average void period is currently 24 days.

Biggest increases

The biggest increase was recorded in the West Midlands, where the cost of a void period climbed by 52.9%.

London recorded the highest overall cost at £1,252 per void period, despite having one of the shortest average vacancy periods in England at 16.6 days.

Roma Sharma (pictured), Rushbrook & Rathbone’s managing director, says: “Many landlords focus on the rent they achieve, but the rental income lost between tenancies is often just as important as the rent achieved during them.

“A void period doesn’t just mean a temporary loss of rental income, landlords are also still contending with mortgage payments, insurance costs, service charges, maintenance obligations and other outgoings whilst a property sits empty.

Even a relatively short void period can have a meaningful impact on overall returns.”

“As a result, even a relatively short void period can have a meaningful impact on overall returns, particularly at a time when landlords are facing increasing compliance requirements and investment costs across the sector.”

She adds: “One of the most effective ways to reduce the impact of void periods is through proactive management.

“Maintaining strong relationships with tenants can improve retention, whilst early planning, prompt maintenance and effective marketing can significantly reduce the time between one tenancy ending and the next beginning.”

The research used ONS rental data and average void period figures supplied by Goodlord.