Half of all landlords are not experiencing any void periods of rent at all, and those that do are sufficiently covered by rental income cover, according to research from Birmingham Midshires.
More than 500 landlords were questioned in a survey which found that any voids they do have only span 15-30 days per year.
When landlords do find their property empty, the research found that 42% of them use their savings to cover the void, 26% use their regular income, and 25% cover the cost with income that they receive from other rental properties they have.
Rental income protection – which means landlords charge tenants more than the mortgage repayments in order to cover void periods – can commonly be 100%, 110% or 125% of the repayments.
Phil Rickards, head of sales at BM Solutions said, "It's a fact of Buy to Let that some landlords will face void periods, what's important is how they prepare for them.”
“Even at 110% rental income cover, landlords are in a position to manage the costs that void periods may cause, but they must make that choice according to their own situation. Brokers have expert market knowledge, and landlords should seek their help when they make this decision.”
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