How To Avoid A Void Period
When you’re looking at comparable properties it’s easy to say that achieved £700 and I think mine is in better condition, so I’m going to say mine’s worth £800. As humans we compare and like to think we have something better than someone else and that can be a big issue here and can lead to big void period. A wise lady once said to me ‘a property is only worth what someone will pay for it’!
If you price yourself out of the market you won’t get any interest, look greedy and will need to do a price reduction. This will leave you with an empty property for a period of time costing you unnecessary money on the mortgage, council tax and standing charges on the utility bills. Taking a slightly lower rent can save you money in the long run, for example:
Asking price of £800 a month can lead to the property being empty for 2 months, meaning loss of rent stands at £1600. If you achieve a lower rent of £750 to avoid a void period, overall in a 12 month period that will be a difference of £600.
As you can see from the example about holding out for that higher rent isn't always financially beneficial.