Void Period Risk

Void period risk is the potential for rental income loss during tenant turnover, encompassing vacancy duration plus re-letting costs and rent-free periods.

Void ComponentsDuration
Notice periodTenant provides 30 to 90 days notice
Marketing time2 to 8 weeks to find new tenant
Lease negotiation1 to 2 weeks
Tenant fit-out period0 to 8 weeks depending on property type
Rent-free period0 to 3 months for new tenant incentive
Total void period2 to 6 months typical
Void Period CostsImpact
Lost rental income2 to 6 months rent
Service chargesLandlord pays during vacancy
UtilitiesMinimum DEWA charges
Marketing costsAgent fees, advertising
Tenant inducementsRent-free, fit-out contribution
Make-good and repairsRestore property between tenants
Total cost8% to 15% of annual rent per turnover

Related Terms

Vacancy RiskTurnover (Tenant)Rental IncomeLease-Up Period

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