The Real and Hidden Costs of Void Periods in Build to Rent

Build to Rent (BTR) operators strive to optimise Estimated Rental Values (ERVs) to maximise revenue. However, pushing rents too high without a sustainable lead source often results in prolonged void periods. Every week a unit remaining vacant erodes the contract’s Lifetime Value (LTV), impacting overall scheme performance.

Why Void Periods Are a Major Cost Factor

• Zero Rental Income – An untenanted unit generates no revenue, directly reducing NOI.
• Landlord-Covered Expenses – Utilities, council tax, and service charges fall on the landlord during voids.
• Community Impact – A high volume of vacant units can negatively affect the scheme’s desirability and sense of community.

To mitigate these risks, landlords must understand the different types of void periods and implement targeted strategies to minimise them.

The Three Types of Void Periods

1. Explicit Void (No Tenant Secured)

This occurs when a unit is actively marketed but remains vacant due to a lack of tenant interest or misalignment in pricing and demand.

How to Reduce Explicit Voids:

• Review leads’ sources: Renters’ “Willingness to Pay” impacts the leasing pace, with many operators utilising passive marketing channels, rather than approaching the desired tenant profile currently looking to rent in other locations.
• Start Marketing Early – Advertise units well ahead of move-out dates to maintain pipeline continuity, typically 3-months’ in advance.
• Use Data to Optimise Pricing – Monitor lead-to-conversion rates at various price points and adjust accordingly.
• Track Unit-Level Performance – Identify underperforming units and take corrective action to enhance appeal.

2. Implicit Void (Tenant Secured but Not Yet Moved In)

Even after a tenancy is agreed upon, delays in move-in dates create additional void loss.

How to Reduce Implicit Voids:

• Define Clear SLA on Move-In Timelines – Set expectations for acceptable delays to ensure units do not sit vacant unnecessarily.
• Process Tenancy Progression (TP) Early – Expedite TP checks and documentation to reduce the risk of last-minute fall-throughs.
• Implement Contingency Planning – Have backup strategies for units with prolonged move-in delays.

3. Availability-Led Void (Unit Unavailable for Letting)

Some void periods occur when units cannot be let due to maintenance, refurbishment, or operational inefficiencies.

How to Reduce Availability Voids:

• Set SLAs for Unit Turnaround – Establish defined service-level agreements for maintenance teams to ensure swift unit readiness, enabled by pre-vacancy inspections.
• Monitor Maintenance-Related Downtime – Regularly track how often a unit is unavailable and ensure maintenance priorities are aligned with leasing objectives.
• Control Costly Overheads – Manage landlord-borne expenses like energy bills and council tax efficiently.

The Bottom Line

Void management is a critical component of a successful BTR leasing strategy. While managing ERVs’ growth over time, the trade-off of prolonged voids can significantly erode LTV and NOI. Operators must adopt a data-led approach, streamline tenancy processes, and maintain strict oversight of maintenance-related downtime to ensure minimal disruption to income streams.

Proactively tackling voids will enhance overall portfolio performance, create a thriving community, and improve long-term asset value. If you want to optimise your leasing strategy and reduce void costs, get in touch today.

How Home Made Can Help Minimise Void Periods

As the UK's largest and most experienced BTR leasing solution, Home Made has an unmatched track record in minimising void periods for institutional landlords. Our proprietary technology and data-driven approach optimise pricing, marketing, and lead conversion, ensuring units are tenanted faster. With an expert team specialising in BTR, we implement best-in-class processes to streamline tenancy transitions, reducing implicit voids and maximising occupancy. Our tech-enabled system captures renters By partnering with Home Made, landlords can protect their revenue, enhance community appeal, and ensure their assets perform at their highest potential.

To learn more about how we can help, contact us today at btr@home-made.com.

TL;DR Executive Summary

Void periods in Build to Rent (BTR) are costly and heavily impact assets’ Net Operating Income (NOI). While maximising Estimated Rental Values (ERVs) is crucial, setting rents too high can lead to prolonged vacancies. Voids come in three forms: explicit (no tenant secured), implicit (tenant secured but not yet moved in), and availability-led (unit is unavailable due to maintenance). Proactively managing the different voids with a bespoke strategy, using data-driven pricing, early marketing, and streamlined tenancy progression can reduce costs and improve occupancy rates.