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There may be periods when the property purchased may be vacant (i.e. without a tenant) or during which rents fall below expectations.
Implication
Regardless of whether your property is vacant or if rents are lower than expected, you will still need to make your mortgage repayments. Failure to make these repayments may result in the property being reposessed.
How we can help
Investing in quality property in areas with strong rental prospects will help to reduce this risk. We also help our clients to secure competitive rental insurance and rental guarantees, and work closely with tenant search and selection agencies. However, periods of vacancy are almost inevitable. You should always ensure that you have sufficient cash to cover such a contingency. We recommend that you allow for three months of vacancy from the date of completion.