What Affects HMO Profits: The Impact of Voids

Welcome to the latest part in our series on what affects HMO (House in Multiple Occupation) profits. Today, we’re tackling an unavoidable aspect of HMO management: void periods.

Voids can feel like a setback, but understanding and preparing for them is crucial for maintaining a profitable HMO business. Let’s dive into the key points.

Voids Are Inevitable

No matter how well-located or in-demand your property is, void periods are a reality of HMO management. Even in a prime area, tenants come and go, and there will be times when rooms sit empty. It’s important to factor this into your financial planning and ensure you have a buffer to cover the downtime.

Tenant Notices and Delays

A common scenario is when a tenant gives notice but remains in the property for their notice period. While this is standard practice, it can limit your ability to market the room effectively. Some tenants may refuse to allow viewings while they are still in residence, which is within their rights.

This means you might not be able to show the room to prospective tenants until the current occupant has vacated. Once the room is vacant, you’ll need to schedule viewings, select the right candidate, and conduct referencing—a process that can take weeks, if not longer.

Planning for Void Periods

Here are a few strategies to minimize the impact of void periods:

• Pre-emptive Marketing: If possible, start marketing the room as soon as notice is given, provided the current tenant agrees to viewings.

• Streamline Referencing: Work with an efficient referencing service to reduce delays once you’ve selected a tenant.

• Regular Maintenance: Ensure rooms are in good condition to attract new tenants quickly.

• Tenant Communication: Build strong relationships with your tenants so they are more likely to cooperate with viewings during their notice period.

The Bottom Line

Voids may be an unavoidable aspect of HMO management, but with proactive planning, their impact on your profits can be minimized. Always include a contingency for void periods in your financial forecasting and look for ways to streamline the turnover process.

By staying prepared, you can weather the occasional void period and keep your HMO business profitable in the long run.

Have questions or insights about managing void periods? Share them with us—we’d love to hear your thoughts!