What is a Guaranteed Rent Scheme and Is It Right for You?
November 2, 2024
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TL;DR
Void periods directly reduce annual rental returns. Even short gaps between tenancies can erase profit margins. Therefore, landlords must calculate true annual income, not just headline rent.
What’s in This Article:
- What void periods really cost
- How void periods affect annual yield
- Hidden costs beyond lost rent
- How guaranteed rent removes void periods
- FAQs about void periods
Introduction
Many landlords underestimate how much void periods reduce annual income. A few empty weeks may not seem serious. However, when added together, those gaps often wipe out profit. Therefore, annual return calculations must include downtime.
What void periods really cost
Void periods mean zero rent.
However, costs continue:
- Mortgage payments
- Insurance
- Council tax (in some cases)
- Utility standing charges
- Letting fees
Because expenses do not pause, each empty week reduces net yield.
According to UK housing data published via official statistics portals, rental downtime remains a common contributor to reduced landlord returns.
https://www.gov.uk/government/statistics
Void periods and income breakdown
Let’s simplify the maths.
If rent equals £1,200 per month:
Annual headline income = £14,400
However, if the property sits empty for 6 weeks:
- Lost income ≈ £1,800
- Adjusted annual income ≈ £12,600
Therefore, the “real” rent drops significantly.
Even one extended vacancy can reduce yield by 10–15%.
Void periods and compounding impact
Void periods rarely happen once.
Instead, they often occur:
- Between tenancies
- During refurbishments
- After evictions
- When demand slows
As a result, small gaps compound over time.
Because lenders assess consistent income, irregular cash flow can also affect refinancing confidence.
The National Residential Landlords Association highlights the importance of stable rental income for long-term planning.
https://www.nrla.org.uk
Hidden costs beyond lost rent
Void periods also create indirect costs.
Landlords often face:
- Advertising fees
- Referencing costs
- Cleaning and repairs
- Management time
Therefore, the real financial impact extends beyond just missed rent.
In contrast, guaranteed rent removes tenancy turnover stress entirely.
Our guide explains how guaranteed rent eliminates void exposure:
https://www.citywidehousing.co.uk/how-a-rent-guarantee-scheme-protects-your-rental-income/
You can also see how long-term leasing stabilises returns here:
https://www.citywidehousing.co.uk/why-long-term-leases-benefit-landlords/
How CHG Handles Compliance for You
At Citywide Housing Group, we remove the stress of compliance by:
- Applying for and maintaining your HMO licence
- Arranging all safety inspections and certificate renewals
- Carrying out repairs to meet council standards
- Keeping your property ready for inspection at all times
- Providing consistent monthly rent with no void periods
How Our Guaranteed Rent Scheme Works
Step 1: Get in Touch
Contact us today by phone or complete our online form to schedule a free, no-obligation property consultation.
Step 2: Property Assessment
We’ll visit your property to assess its condition, provide recommendations for any necessary improvements, and ensure it meets all required standards.
Step 3: Compliance & Handover
We manage the entire compliance process, carry out any necessary repairs, and arrange for an inventory check before officially handing over the property.
Step 4: Consistent Rent Begins
Once everything is in place, we take care of the property management, and you’ll start receiving consistent rent every month.
Why stability often beats peak rent
Some landlords chase the highest possible rent. However, fluctuating occupancy often undermines gains.
For example:
- Higher rent with 8 weeks void
vs - Slightly lower rent with zero void
In many cases, the second option produces stronger annual income.
Therefore, consistent occupancy matters more than headline pricing.
How Citywide Housing Group Supports Landlords
At Citywide Housing Group, we specialise in helping landlords secure guaranteed income with long-term leases. Our approach ensures:
Full Property Management: From tenant management to maintenance, we take care of everything so you don’t have to.
Compliance and Legal Support: We ensure that all your properties meet legal requirements and comply with housing standards.
No Hidden Fees: We believe in transparency, with no surprise costs—what we agree on is what you get.
Local Expertise: Our team is familiar with the Bradford housing market, ensuring you get the best returns for your property.
FAQs: void periods
They vary. However, many landlords experience 2–8 weeks between tenancies.
Yes. Inconsistent income can influence lender assessment.
Under guaranteed rent models, vacancy risk transfers to the leaseholder.
Often yes, because multiple rooms create multiple turnover points.
How to Get Started with Citywide Housing Group
If you’re ready to secure fixed, reliable income with no voids or arrears, it’s time to join the growing number of landlords in Bradford benefiting from guaranteed rent schemes.
Contact Citywide Housing Group today to schedule your free property assessment and discover how we can help you unlock the potential of your property.
For more information, visit Citywide Housing or call us at 0113 323 0678.
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