Being a landlord is a challenging process all year round, but the first few months of the year can be particularly tricky. The weather makes many people feel miserable in January. If you had a particular joyous festive season, January may be a challenging month financially and getting your health back on track.
However, while many people find it challenging to deal with personal matters in January, professional issues can also be stressful. It is often overlooked that landlords, in their professional role, often deal with people’s problems. This is an issue which underpins why ARLA Propertymark has informed landlords to be wary of void periods in the first few months of the year.
Void periods are longer at the start of the year
The rental market organisation has provided figures which showed for 2019, the average void period between January and April was four weeks. However, for the rest of the year, the average void period was three weeks. There are many reasons why the first few months of the year are more challenging for landlords concerning void periods.
It has been found there is an increased likelihood of evictions in the first month or months of the year. This happens when tenants overstretch their finances at Christmas and are left to deal with the aftermath in January.
Many tenants lack funds to pay their rental bill in January
Another issue which leads to void periods in January is tenants having a lack of funds. It costs money to move home with the security deposit, additional fees and the cost of moving to consider. With many people finding January and February tight months financially, it is understandable there is no desire to increase your outlay at this time.
The rental market is cyclical, and this causes problems for some landlords
With many tenants holding a 12-month contract, these issues become cyclical ones. Spring and summer have improved weather conditions which make moving home more accessible, and in autumn, the student market usually ensures the letting market is in fine fettles. This leaves winter as a challenging time of year in the property market, and it is vital landlords are aware of these challenges.
While void periods are inevitable in the rental market, it is crucial landlords plan for them as much as they can. Ideally, a landlord should allocate funds to provide cover for these periods, but of course, this isn’t always possible for many landlords. Knowing how to minimise void periods, and how to manage them adequately when they do arise is vital for landlords, and we are more than happy to assist you.
At Hunters Camberwell, we are pleased to say we have assisted many local landlords. We know the challenges of the rental market, and we understand how difficult the market can be in winter. If you are a local landlord looking to minimise your problems in winter, we can assist you. Contact us today, and we look forward to helping you.