Managing voids can be a complex and challenging task that requires careful planning and execution. KeyNest looks at the most common mistakes that housing associations should avoid to ensure the success of voids management
As a senior housing association executive yourself, managing voids is a crucial part of your role. It can be a complex and challenging task that requires careful planning and execution – and whatever you do, it nearly always comes with some surprises and delays. Each extended repair can result in lost income, longer vacancies, and dissatisfied customers.
To ensure the success of voids management in your association’s properties, it’s essential to avoid common mistakes that can negatively impact the process. Here are the top 5 that you should focus on:
1. Failing to start the re-letting process early enough
One of the most significant mistakes is not starting the re-letting process early enough. To reduce void periods and lost income, it’s important to have a plan in place for re-letting a property before the current customer moves out. This includes scheduling necessary repairs and maintenance, marketing the property, and screening potential customers.
Why is it important?
In the UK, the average void period is 20 days for housing associations and 23 days for local authorities (source: HouseMark, “Void Turnaround Time Benchmarking 2019-20”).
According to research, with an average monthly rent of £940, equating to £31 per day, this means that void periods are currently costing landlords £518 per year (source: Property Reporter).
2. Allowing slow operations during the void period
Delayed operations during the void period can significantly increase the time it takes to re-let a property. This includes tasks such as conducting repairs, cleaning, and preparing the property for new customers, but even small ones, like passing keys to contractors and cutting the waiting time.
In the UK, the average cost of a void period for a housing association is £3,600. However, if the void period is extended due to slow operations, the cost can rise even further.
“During the void period, it’s critical to maintain the property to ensure it’s in good condition and ready for the next customer”
According to HouseMark’s Void Turnaround Time Benchmarking report, housing associations that take longer than 30 days to re-let a property incur an average cost of £8,400 per void period. This includes lost rental income, management costs, and repairs.
Slow operations during the void period can also lead to negative customer feedback and impact the reputation of the housing association, which can make it harder to attract and retain customers in the future
3. Neglecting to maintain the property during the void period
During the void period, it’s critical to maintain the property to ensure it’s in good condition and ready for the next customer.
Neglecting maintenance can lead to more significant repairs and longer void periods in the future.
Your staff should conduct regular inspections and repairs during the void period, including cleaning, painting, and fixing any property issues. This not only reduces void periods but also increases the lifespan of the property.
Why is it important?
According to research by YouGov for the charity, 25% of private renters polled said they have not asked for repairs to be carried out due to fear of eviction – because of this, your property may require multiple repairs that were not even reported (Source: YouGov, “Top reasons for customers leaving their rental property”).
Property maintenance can increase the lifespan of a property by up to 20 years, according to experts (source: The Guardian).
4. Failing to screen potential customers thoroughly
Another common mistake is failing to screen potential customers thoroughly. Thorough screening is crucial to ensure that they are a good fit for the property and community and reduce the risk of problematic or antisocial behaviours.
Screening should include credit checks, criminal background checks, and employment verification. This helps protect the property and community from negative impact and ensures customer satisfaction.
Some numbers:
- Evictions in the UK have risen by 98% in the past year due to rent arrears, property damage, and anti-social behaviour (source: The Guardian)
- Research shows that up to 70% of customer debt is caused by customers with poor credit history (source: Landlord Today)
5. Not having a clear communication strategy
During the voids period, it’s essential to keep upcoming customers informed about the property’s status. This includes providing regular updates on any repairs or maintenance, as well as the re-letting process.
You should have a clear communication strategy in place, including the use of social media and email. This ensures that customers and potential customers are informed, reducing misunderstandings and dissatisfaction.
Why is this crucial?
A survey found that 85% of customers want regular communication from their landlord or property manager (source: Property Reporter).
Repairs and maintenance remain the most important aspect of the service for leaseholders.
Satisfaction with the way their landlord deals with repairs and maintenance in communal areas has increased by 7 percentage points since 2017 to 65%. However, a quarter (23%) of leaseholders express dissatisfaction.
A fifth (20%) suggest the state of repair in their block and/or estate is poor (Newham Council Tenants and Leaseholders Surveys 2018).
Housing Digital stakeholder KeyNest is a provider of a secure and cost-effective way to grant access to your void properties to contractors and service providers.
Your organisation’s staff can store keys in KeyNest Points so that contractors, maintenance staff or surveyors can later collect them. These locations are usually newsagents, cafés and taxi offices, and automated lockers outside petrol stations, supermarkets and retail parks. There is currently a KeyNest Store within a seven-minute walk of 90% of UK postcodes.
Image: r.classen – Shutterstock
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