Property managers can turn student void periods—times when student housing is empty between academic years—into an advantage. While the lost revenue caused by void periods can feel like the system stacking against you, property managers can use the time to focus on improving properties ahead of the next academic year.
This requires planning and proactive steps, focusing on property maintenance, keeping tenants, and looking into other rental options. Doing so can reduce financial losses and boost property value.
Proactive lease renewals are crucial. It is important to secure future tenancy by initiating lease renewals well in advance of the academic year's end. This gives current tenants ample time to decide if they plan to stay and allows property managers to identify potential vacancies early.
Targeted marketing plays a significant role in attracting new students. This involves creating marketing campaigns that specifically highlight the property's advantages and appeal to the student demographic. Advertising through university housing portals, student social media groups, and local student events can be highly effective.
Thorough tenant screening is essential for reducing future vacancies. Most students won’t have lived away from home before, so it is unlikely property managers will be able to conduct thorough background and referencing checks. The way around this is to require a guarantor as part of the process.
As soon as tenants provide notice to vacate, conduct thorough property inspections. This allows time to identify necessary repairs and maintenance early on, which helps minimise downtime between tenancies.
The void period between tenants is also an ideal time to complete scheduled maintenance, repairs, renovations, and upgrades. This ensures the property is well-maintained and attractive to prospective new tenants. Consider property enhancements, such as modernising kitchens or bathrooms.
Consider diversifying your rental strategy with short-term lets. During the summer months, especially in areas with tourist attractions, this approach can help offset income loss from student vacancies.
Offering flexible lease options is another strategy to attract a wider range of potential tenants. This could include shorter lease terms or the option for summer sublets. Finally, tailor your marketing efforts for these periods to potential tenants, such as young professionals, to fill any gaps in occupancy.
Implementing strategies to minimise utility costs during student void periods is imperative. A comprehensive approach includes turning off all non-essential lights and unplugging appliances, which can still consume electricity even when not in use. Adjusting heating and cooling settings to a minimal, frost-protection level in colder months or completely off in warmer periods can lead to significant savings.
Ensuring adequate insurance coverage is important to lessen potential financial losses from unoccupied properties. Standard landlord insurance policies may have clauses regarding vacancy, so it's vital to review them and potentially upgrade to a specialist unoccupied property insurance policy if the void period exceeds a certain duration, such as 30 or 60 days. This type of policy typically covers risks such as vandalism, squatters, burst pipes, and fire, which can be more prevalent in vacant homes.
By proactively addressing potential challenges and implementing these strategies, property managers can effectively navigate student void periods, minimise financial losses, and maintain the long-term value of their rental properties.