#010 Property Voids and Saying NO

You’re doing the right thing if you always plan ahead and you learn that saying YES to every opportunity that comes is a no-no. In today’s episode of the Property Entrepreneur Podcast, Gordon talks about the importance of taking note of your property voids and the habit of saying NO. Discover great tips on how to deal with the property voids depending on the property strategy you have – buy-to-let’s, single lets, HMO’s, or SA’s. He teaches you how you should calculate your income projection when it comes to property voids. Then, after this, he moves to the topic you shouldn’t miss also, that saying NO is okay. Gordon encourages you to choose the battles you fight for, so you don’t waste your time and energy. If you’re an entrepreneur, saying NO is definitely a good practice you should have so make sure to tune in to know more. KEY TAKEAWAYS Gordon’s highlight for the week: His ear and throat infection’s all gone now! He’s now back to his usual self and his usual routine. He ran his fastest 5-km run with his new record of 25 minutes and 11 seconds. A property void happens when your property is empty. It is considered a property void when it doesn’t earn income since there are no tenants for your property. How do you deal with voids? It depends on what property strategy you’re using. Plan for the worst case of having no tenants at all. Always prepare your back-up plan (i.e. emergency money). With buy-to-let’s, it’s most likely you have voids with tenants. Try to minimise the void period. Allot the time to prepare the property for the next tenant. Reducing the time reduces the loss of income. When Gordon is stacking his deals for single let properties, he considers a month of each year a void. So instead of calculating 12 months in a year, he’s only calculating the 11 months as the income period. With HMO’s, there are different contracts for different tenants. There may be times, that there is one room that is vacant because it might be difficult to find a tenant. Gordon suggests that you calculate your profit margin, it should be at least the size of the biggest room. With serviced accommodations, which act like hotels, what you consider the voids are just for short-term – when there’s no tenant. Gordon suggests that you put in mind that 65% of the time it will be tenanted, and 35 % of the time, it won’t. Say NO to people. You can’t offer them all your time and energy. You only have limited resources so always know how to prioritise yourself first and then those who really need it, next. Ask yourself if it’s going to help you and also help them. Does the favour look like you’re going to do all the work? Are you going to be benefitted? In business, there will be clients and customers that won’t be the right fit for you. Though you are there service provider of choice, you should have your own choice of the customer as well. BEST MOMENTS “If you have fewer voids regularly than what you’re planning for, then, by all means, change your figure. If you find out you’re having more voids than what you’re planning, tweak it the other way, so you get as accurate as possible.” “Always keep in the back of your mind that maintenance work should be done as fast as possible to reduce the number of voids.” “If it’s only a year contract and they moved out, you got a month to find somebody. A month is an ample time to find somebody.” “As much as you want to help people out, as much as you want to do things with your friends, as much as you want to do things for your family, as much as you want to please your boss, but you can’t just do everything, no matter how much you try.” “It’s defending your time. Making your time valuable for what matters to you.” VALUABLE RESOURCES Progressive Property com ABOUT THE HOST Welcome to the Property Entrepreneur Podcast. We don’t know about you, but we’re fed up of being broke and relying on exchanging time for money working for others. Join Gordon Done on his journey to becoming a full-time property investor. You’ll get a no holds barred introduction to property entrepreneurship. It doesn’t matter if you’re completely new to property or you’ve been working in property for years; we’ll give you the tools you need to create a mindset for success. We’ll help you avoid any mistakes we make along the way while giving you the blueprint to any successes we achieve. Join us on our journey to becoming professional property investors and learn how you too can become financially free through property entrepreneurship. “Financially free…Brick by Brick” CONTACT METHOD FB: https://www.facebook.com/The-Property-Entrepreneur-Podcast-519677241877352/ IG: https://www.instagram.com/thepropertyentrepreneurpodcast/ Website: https://www.thepropertyentrepreneurpodcast.com/ Email: [email protected]