Key Takeaways:

• Void management offers a strategic solution to transform empty units into profitable properties.
• Vacant properties are a financial drain for property owners, local government and the property market in general.
• Void management solutions are versatile enough to help property owners, developers, housing associations and portfolio owners.
• Comprehensive service is the key to maximising the benefits of void management. Look for a full-service approach that includes dynamic pricing, revenue forecasting, compliance checks, rapid activation, and a clear transition strategy.

Let Void Management Maximise Property Investments

Void management is an effective strategy to maximise a real estate property investment. Don’t think that just because you own a property, it’s already building wealth for you. When a property is vacant, it ceases to be an asset. The longer it sits empty, the more it becomes a liability for a property owner.

To maximise the potential of your property investment, it is best to keep the void period as short as possible.

This is also true for new-build properties. Developers struggling to sell new builds are losing money the longer the units stay empty.

Fortunately, void management comes with a strategic solution to turn vacant properties into new revenue streams.

But before you can appreciate how much it can help, let’s dig deeper into the true cost of vacant properties.

Did you know:

There are approximately 720,000 homes in England that are empty, while 350,000 people are homeless, and 1.33 million households are on the social housing waitlist.

The Real Cost of Empty Units

Vacant properties drain, not just property owners, but the housing sector in general. According to reports, there are approximately 720,000 empty homes across England, with 265,000 of them classified as LTEs (long-term empty, or those remaining empty for more than six months). Despite the number of vacant properties, more than 350,000 people are homeless and 1.33m households are on waiting lists for social housing.

Speaking of social housing, void properties in 2023/2024 cost the housing sector £1.6 billion in lost rent and repairs. Unless this is addressed, void properties will continue to cost the government a substantial budget, which could have been allocated to other purposes.

The more empty homes there are, the more people lose the chance to live in a decent home. Communities also suffer because vacant properties attract crime. Having a high number of empty homes in a neighbourhood negatively affects the value of all properties in the area, and it also deters potential buyers.

Rental properties are also losing money because of prolonged void periods. Reports reveal that the void period costs landlords 19% of rental income in a year, with other regions going as high as 65%. This translates to an average of £1,085 per void period.

These costs alternatively represent a clear opportunity for property owners. With the right management strategies, you can maximise your rental income potential and keep vacancies from affecting the value of your property.

This is where void management comes into play.

Void management is a strategy used by property owners and managers to minimise the duration of void periods and associated costs of properties while transforming them into profitable assets.

Who Needs a Void Management Strategy?

Property vacancies happen for multiple reasons, and void management is versatile enough to provide solutions for each one. Among those who might need this strategy are the following:

• Developers. These include build-to-sell and build-to-rent developers. Every project completion takes time, with some units being finished before others. Not to mention the fact that some units sell faster than others. This would leave several of them vacant for the time being, something that void management can help with. It can monetise units before project completion and during the long sales period, giving developers additional cash flow to complete the build. It can also revive a dormant asset and generate revenue.

• Institutional and Portfolio Owners. Property investors benefit from the consistent income stream from their properties, but only if they can keep vacancies short. Unfortunately, managing multiple properties involves preparing for new tenancies, ensuring compliance and dealing with repairs and maintenance. Failing to meet these needs promptly will only prolong vacancy periods, which in effect will lead to lost revenue potential.

• Council and Housing Associations. Re-letting social housing is critical to solving the housing crisis. Preparing a property for a new tenant involves repairs and refurbishments, in addition to ensuring it meets the Decent Homes Standard. The scope of work required increases with the number of properties needing a new tenant. The faster inspections, repairs, and maintenance are done, the shorter the vacancy period.

• Private Owners. Property owners who use their properties for short or long-term letting would benefit from fewer vacancies. But to reduce void periods, they need to manage and market the property to ensure a steady stream of tenants or guests. Of course, in between bookings or tenancies, they’ll need to deal with repairs and maintenance tasks, which can be tedious and time-sensitive.

Turn Voids Into Revenue-Generating Units

Void management is an effective strategy to convert vacant properties into income-generating ones. It doesn’t matter if it’s an existing rental property or a new build waiting to be sold. Managing these empty units requires local knowledge of the London property market, as well as dynamic pricing strategies and effective housekeeping and maintenance services.

Fortunately, property management companies like City Relay offer void management services to turn empty properties into high-performing rentals. When looking for the right partner, check if they offer the following services:

Feasibility and Compliance Check

Compliance is crucial in properties, particularly those intended for rental purposes. City Relay conducts a detailed assessment of properties before agreeing to manage them. From planning permissions and lease agreements to energy certificates and fire safety measures, void properties will be scrutinised to ensure they’ll meet the Decent Homes Standard and local regulations.

Revenue Forecast

How much will a property earn from letting strategies? Whether it’s short-term or long-term letting, it’s always best to know the income potential of a property. It’s not just about getting a revenue forecast. When you know the potential of a property, you can decide how much to reinvest to improve and maximise the property’s profitability.

Quick Activation

Empty units lose more the longer they stay vacant. You’ll need void management services that can quickly activate the property so it’s ready for letting. Preparing the property for the market involves professional staging, photography, property listing, and effective marketing.

Choosing a company with an extensive network would benefit the property and ensure it will always have new guests or tenants.

Dynamic Pricing

Once the property is ready, it will be listed on multiple letting platforms where it can be viewed by potential guests or tenants. One of the factors that will attract bookings or tenancies is the rental price. The void management service should offer dynamic pricing to optimise nightly or weekly rates and maximise the income potential while ensuring affordability and compliance. This includes analysing the market demands, seasonality and competitor pricing data.

Exit and Transition Strategy

Some void properties are not meant to be rented out forever. Having a clear exit or transition strategy ensures your property will have a smooth hand-back process. Whether it’s a long-term tenancy or a short-term booking, properties that are up for sale or returned to the property owner for personal use will be turned over in pristine condition.

Monetise Your Vacant Units

Don’t let your valuable assets sit empty because it’s one way to drain profits. A property left empty is more likely to deteriorate faster due to neglect compared to properties that receive regular cleaning and maintenance between bookings or tenancies.

Whether you’re waiting for your property to sell or you want to earn extra income, partner with a property management company like City Relay to get end-to-end services. This includes proactive maintenance, in-house cleaning, guest management, tenant vetting, property compliance, dynamic pricing strategies and more.

Find out how much your void property can earn. Get a free rental estimate to unlock your property’s full potential.