How to Budget for Void Periods Between Tenancies

Void periods—when your rental property is empty and not generating income—are a reality every landlord will face at some point. Whether it’s due to tenant turnover, property maintenance, or longer marketing times, these gaps can quickly impact your cash flow if you’re not prepared.

Planning ahead and budgeting for these periods is essential to ensure financial stability and avoid the stress that comes with covering costs out of pocket. In this article, we’ll walk you through how to budget effectively for void periods between tenancies and keep your rental business on solid ground.

What Are Void Periods and Why Do They Happen?

Void periods refer to the time your property sits unoccupied between tenants. Even during these times, you’ll still be responsible for expenses such as:

• Mortgage payments
• Council tax
• Utilities
• Insurance
• Security or upkeep

Void periods can happen for several reasons:

• Delay in finding a new tenant
• Renovation or refurbishment work
• Legal delays following an eviction
• Time required to resolve disputes or damages

If you’ve recently gone through an eviction—whether via a Section 8 Notice for rent arrears for regaining possession—void periods are likely to follow. In some cases, a bailiff eviction may further delay re-letting the property due to court scheduling or property damage.

1. Calculate Your Minimum Monthly Outgoings

Start by identifying your essential monthly costs, regardless of whether the property is tenanted or not. This might include:

• Mortgage or loan repayments
• Building and landlord insurance
• Service charges or ground rent (if applicable)
• Council tax (during voids, this typically falls on the landlord)
• Utility bills (water, gas, electricity)
• Marketing or letting agent fees

This total gives you a baseline figure to budget for each month the property could be empty.

2. Create a Void Fund Based on Realistic Expectations

Once you know your monthly outgoings, it’s time to create a dedicated void period fund. A good rule of thumb is to set aside one to three months’ worth of property expenses per property.

If your property typically sees a gap of two weeks to a month between tenants, you may only need to cover one month. But if you’re operating in a slower rental market or letting to tenants with unstable histories (e.g. following tenant evictions), you may want a larger buffer.

For professional support in managing tenant issues that could delay re-letting, our tenant eviction specialists can help you streamline the legal process and prepare your property for its next tenant faster.

3. Plan for Maintenance and Repairs During Voids

Void periods are the perfect opportunity to tackle property improvements—but they can also bring unplanned repair costs, especially if the outgoing tenant caused damage. You should budget separately for routine maintenance such as:

• Repainting or touch-ups
• Cleaning and carpet washing
• Appliance servicing
• Safety checks (gas, electric, alarms)

If the previous tenant left the property in poor condition or disappeared owing rent, you might also need a debtor tracing service to recover costs or pursue legal compensation.

4. Reduce the Length of Void Periods with Better Planning

While budgeting for voids is essential, it’s just as important to limit how long your property remains empty. Some key strategies include:

• Start marketing early: List your property as soon as notice is given.
• Work with a proactive letting agent: They can help reduce gaps by securing tenants quickly.
• Price the property correctly: Avoid pricing too high—refer to our guide on How to Set the Right Rent Price for Your Property for competitive pricing advice.
• Keep the property in good condition: Well-maintained homes attract tenants faster and reduce the chance of costly voids.

5. Spread Risk with a Contingency Across Your Portfolio

If you manage multiple properties, consider budgeting for voids across your entire portfolio rather than individually. This approach helps you absorb shortfalls from one property with income from others, smoothing out your cash flow.

A separate contingency fund for legal costs, tenant damage, or eviction services also helps avoid surprises—especially if you ever need to take action to evict a tenant or enforce a possession order.

Conclusion

Void periods are a natural part of being a landlord, but they don’t have to catch you off guard. By calculating your monthly expenses, building a void fund, and planning ahead, you can keep your finances stable even when your property is temporarily unoccupied.

Whether you’re preparing for an upcoming tenant change, recovering from an eviction, or simply want to reduce downtime between lettings, the right budgeting strategy makes all the difference.

Need Help Managing Void Periods or Reletting After an Eviction?

Our expert team of tenant eviction specialists can help you resolve tenant issues swiftly and prepare your property for its next occupant.
Contact us today to keep your rental income on track.