Definition
Voids are periods when a property is not producing rent. This may be because it is empty between tenants, under refurbishment, being marketed for sale or unavailable for another reason.
How it affects a property deal
Voids reduce cashflow and can also increase holding costs. In Koreograph, voids matter for year-one cashflow, average cashflow, payback, stressed cashflow and deal quality.
What to check
- Expected tenant turnover and local letting demand.
- Refurb or sale preparation periods.
- Council tax, utilities and insurance during vacancy.
- Whether rent assumptions include a realistic downtime allowance.