Independent specialist BDRC questioned over 500 landlords, and found that those who experienced void periods would most likely find their properties lie empty between 15 and 30 days every year. Key findings from the research show that they meet the cost of voids in various ways:
42 per cent dip into their savings
26 per cent use their regular income
25 per cent cover the cost with the income they receive from other rental properties.
BM Solutions figures show that even at 110 per cent rental income cover, minimum rental requirements requested by lenders mean that landlords can meet the cost of the void through their rental income.
BM Solutions has Buy to Let products available at 125 per cent, 110 per cent and 100 per cent rental income cover. As the research findings demonstrate, those selecting 100% rental income cover are prepared to meet the cost through means other than rent, such as savings.
Phil Rickards, head of sales at BM Solutions said, "It's a fact of Buy to Let that some landlords will face void periods, what's important is how they prepare for them. This won't be the same for everyone – which is why BM offers a range of rental income covers, which gives a choice in how they manage their portfolios.
"Even at 110% rental income cover, landlords are in a position to manage the costs that void periods may cause, but they must make that choice according to their own situation. Brokers have expert market knowledge, and landlords should seek their help when they make this decision."
