How to Reduce Voids and Improve Occupancy in an HMO

A single empty room may appear manageable, but repeated HMO voids can remove thousands of pounds from a landlord’s annual income.

A room advertised at £950 per month loses approximately £219 for every week it remains vacant. If several rooms experience gaps during the year, the effect on cash flow can be greater than a modest increase in maintenance, insurance or management costs.

Reducing voids does not mean accepting the first applicant or continually lowering the rent. Strong HMO occupancy comes from offering the right property at the right price, advertising early, responding quickly and giving suitable tenants reasons to stay.

This guide explains how HMO landlords can reduce room vacancies and improve occupancy without compromising referencing or compliance.

Struggling with recurring voids? Sturstons provides tenant sourcing and full HMO management across South East London, from advertising and viewings through to ongoing tenant retention.

What is an HMO void?

An HMO void is a period during which one or more lettable rooms are vacant and producing no rent.

This differs slightly from a conventional single-let void. When a family leaves a single let, the landlord may temporarily lose all the property’s rental income. In a five-bedroom HMO, the remaining four rooms can continue producing rent while one room is empty.

That income diversification is one of the advantages of an HMO. However, individual rooms may change occupants more frequently than an entire family property.

An HMO can therefore remain technically occupied while consistently operating below its full income potential.

There are several forms of void:

• Planned void: a known gap between one tenant leaving and the next moving in
• Unplanned void: a room becomes available unexpectedly
• Maintenance void: the room cannot be occupied while repairs or refurbishment are completed
• Marketing void: the room is ready but has not attracted a suitable applicant
• Compliance void: a room cannot legally be occupied because of licensing, safety or room-size restrictions
• Strategic void: the landlord deliberately leaves the room empty while changing the property’s use or carrying out larger works

Understanding why a room is empty is essential. More advertising will not solve a pricing problem, while reducing the rent will not solve a poorly presented property.

How much does an empty HMO room cost?

Consider a five-bedroom HMO in South East London where each room rents for an average of £950 per month, including bills.

At full occupancy, the property produces:

£950 × 5 rooms × 12 months = £57,000 gross annual rent

Now assume each room experiences an average three-week void during the year.

The approximate lost rent is:

£950 ÷ 4.33 weeks × 3 weeks × 5 rooms = £3,291

The property’s potential annual rent falls from £57,000 to approximately £53,709.

The direct rental loss is only part of the cost. The landlord may also pay for:

• Advertising
• Additional viewings
• Cleaning
• Redecoration
• Inventory updates
• Replacement furniture
• Referencing
• Check-in administration
• Council Tax and utilities
• Travel or staff time

Most HMO running costs continue even when a room is empty. The heating, broadband, Council Tax and communal cleaning do not become substantially cheaper because four rather than five tenants are living in the property.

This is why reducing avoidable gaps can have a significant effect on HMO profit after expenses.

What is a good occupancy rate for an HMO?

There is no universal occupancy rate that every HMO should achieve. Performance depends on the location, room type, price, tenant market and time of year.

Occupancy can be calculated as: occupied room-days ÷ available room-days × 100.

A five-bedroom HMO has 1,825 available room-days in a 365-day year.

If the property records a combined 90 vacant room-days, its occupancy rate is:

1,735 ÷ 1,825 × 100 = 95.1%

A consistently high occupancy rate is desirable, but 100% occupancy is not always the most profitable outcome.

For example, keeping a difficult tenant purely to avoid a vacancy can create:

• Rent arrears
• Damage
• Complaints from housemates
• Good tenants leaving
• Increased management time
• Greater legal and compliance risk

The objective should be high-quality, sustainable occupancy rather than keeping every room filled at any cost.

Why do HMO rooms remain vacant?

The most common causes include:

• Rent set above the local market
• Poor photographs
• An unclear or incomplete advert
• Slow responses to enquiries
• Limited viewing availability
• A room in poor decorative condition
• Insufficient communal space
• Too many tenants sharing one bathroom
• Weak transport connections
• Inaccurate descriptions of the location
• An unsuitable mix of housemates
• Complicated application procedures
• Referencing delays
• Advertisements launched too late
• Seasonal changes in demand
• High tenant turnover caused by poor management
• Unresolved repairs or cleanliness problems
• A licence restricting the legal occupancy

Some factors cannot be changed. A landlord cannot move the property closer to a station or enlarge every bedroom.

However, presentation, pricing, communication and the tenant experience can usually be improved.

Set the right rent from the beginning

Overpricing is one of the most common causes of an extended HMO void.

Landlords sometimes calculate the required rent by adding a desired return to the mortgage and expenses. Prospective tenants do not assess a room in this way. They compare it with other available rooms offering similar size, location, bills and facilities.

Review competing listings for:

• Room size
• Private or shared bathroom
• Number of housemates
• Distance from transport
• Whether bills are included
• Furnishing
• Outdoor space
• Cleaning arrangements
• Working-from-home space
• Property condition

The highest advertised price is not necessarily the market rent. A room that has been online for six weeks without being let may be evidence of overpricing rather than achievable value.

The cost of holding out for a higher rent

Suppose a room is advertised at £1,000 per month but could let promptly at £950.

Holding out for an additional £50 appears attractive, but a three-week delay costs approximately £692 in lost rent.

It would then take nearly 14 months at the additional £50 per month to recover that single void.

A realistic rent secured promptly may produce more annual income than a higher figure achieved after a prolonged vacancy.

This does not mean automatically offering a discount. First improve the presentation, photographs, advertising and enquiry handling. If good-quality enquiries remain low, the rent may need to be reconsidered.

Advertise before the room becomes empty

Marketing should begin as soon as the tenant gives valid notice and their leaving date is reasonably clear.

Waiting until the room is vacant creates an avoidable gap.

Before launching the listing:

• Confirm the intended departure date
• Discuss reasonable viewing access with the outgoing tenant
• Inspect the room and identify required work
• Arrange cleaning or repairs
• Update the photographs and description
• Confirm the new advertised rent
• Establish the earliest realistic move-in date

Where the current room cannot be photographed attractively, use genuine photographs taken before the existing tenancy. Do not use misleading images of a different room without explaining this clearly.

Tenants should be given reasonable notice before viewings, and access to a private bedroom should be agreed rather than assumed.

Advertising early is helpful, but avoid promising a move-in date that depends on substantial work being completed within an unrealistic turnaround.

Reduce the turnaround time between tenants

A room should not remain empty for ten days because cleaning, painting and minor repairs were only arranged after the previous tenant left.

Complete a pre-checkout inspection where appropriate and prepare a schedule covering:

• Final checkout
• Inventory comparison
• Cleaning
• Mattress or furniture replacement
• Decoration
• Maintenance
• Safety checks
• Photography
• New inventory
• Check-in

Keep commonly required items available or easy to obtain, including:

• Mattress protectors
• Standard lampshades
• Curtains or blinds
• Door locks and handles
• Neutral paint
• Smoke-alarm batteries
• Basic furniture fittings

Maintenance should still be completed properly. The objective is to eliminate administrative delays, not to rush a new tenant into an unfinished room.

Improve the room and communal areas

Prospective tenants are not only renting a bedroom. They are deciding whether they want to share the entire property with the existing household.

A freshly decorated room can still be difficult to let if the kitchen is cluttered, the bathroom is dirty or the hallway smells damp.

Before taking photographs or conducting viewings, check:

• Bedroom decoration
• Flooring
• Mattress and bed frame
• Storage
• Window coverings
• Lighting
• Locks and handles
• Kitchen cleanliness
• Fridge and cupboard space
• Bathroom condition
• Communal furniture
• Garden or outside space
• Bins and waste storage
• Odours and ventilation

Small improvements can make a meaningful difference. Better lighting, a full-length mirror, practical storage, neutral bedding for photographs and a clean desk area can help an ordinary room appear more usable.

However, staging must remain accurate. Do not make a small room appear considerably larger through misleading lenses or digitally added furniture.

Create a listing that answers tenants’ questions

A strong HMO advert should help a suitable applicant decide quickly whether the room meets their needs.

Include:

• Clear monthly rent
• Which bills are included
• Deposit amount
• Earliest availability
• Room size or a useful description
• Furnishing
• Private or shared bathroom
• Number and broad profile of housemates
• Kitchen and communal facilities
• Cleaning arrangements
• Broadband
• Garden or outside space
• Nearest stations and realistic walking times
• Minimum income or referencing requirements
• Whether pets will be considered
• Viewing and application process

Use a clear opening description rather than generic wording such as ‘must-see luxury room’.

For example:

Bright furnished double room in a professionally managed five-bedroom house share, approximately seven minutes from Hither Green Station. The property has two bathrooms, a communal kitchen and living area, fortnightly cleaning and broadband included.

The description tells the applicant what is available, where it is and how the household operates.

Use good photographs

The first image should usually show the room at its brightest and most presentable.

Include photographs of:

• The complete bedroom
• Storage and working space
• Kitchen
• Living or dining area
• Bathroom
• Garden
• Exterior where helpful

Photographs should be bright, level and current. Remove laundry, bins, cleaning products and personal possessions where possible.

Floor plans and short video tours can help applicants understand the layout before booking a viewing.

Use the right advertising channels

Different platforms attract different tenant groups.

An HMO room might be promoted through:

• Specialist room and house-share websites
• The agent’s own website
• Property portals
• University accommodation services
• Local employer networks
• Social media
• Existing applicant databases
• Tenant referrals

Avoid relying entirely on one platform. A room performing poorly on one website may attract stronger enquiries elsewhere.

The advert should be consistent across every platform. Conflicting rents, deposits or availability dates create confusion and reduce trust.

Review advertising performance after the first few days:

• How many people viewed the listing?
• How many enquiries were received?
• How many met the basic requirements?
• How many viewings were booked?
• How many applicants proceeded?
• At which stage were they lost?

A listing with many views but few enquiries may have a pricing or presentation problem. Numerous enquiries but few booked viewings may indicate slow responses or unclear qualification criteria.

Respond to enquiries quickly

Tenants often enquire about several rooms at once. A suitable applicant may have already booked three viewings before a landlord replies the following evening.

Use a short initial response that confirms:

• The room is still available
• The move-in date
• The advertised rent
• Basic household information
• The questions needed before arranging a viewing
• Available viewing times

Avoid sending a long interrogation before acknowledging the enquiry.

Useful initial questions might include:

• When are you looking to move?
• Is the room for one person or a couple?
• What is your employment or study position?
• How long are you hoping to rent?
• Do you have any pets?
• When are you available to view?

The same criteria should be applied consistently. Tenant selection and Right to Rent procedures must not discriminate unlawfully.

All adult occupiers must have their Right to Rent checked before the tenancy begins, even if they are not named in the written agreement. See the current government Right to Rent guidance.

Make viewings easy to attend

Restricting viewings to one narrow weekday slot can prolong the void.

Where practical, offer:

• Daytime and early-evening appointments
• Grouped viewing blocks
• Video viewings for applicants relocating
• Clear directions
• Appointment confirmation
• A reminder on the day

Confirm that the applicant has understood the basic rent, deposit, location and move-in date before the viewing.

At the property, allow them to see the communal areas and explain:

• Who currently lives there
• How cleaning is managed
• Where belongings are stored
• How maintenance is reported
• Which bills are included
• How the application process works

Do not pressure applicants into making an immediate decision. Give clear next steps and follow up promptly after the viewing.

Reference applicants efficiently

Referencing protects the landlord, but an unnecessarily slow process can cause a suitable applicant to choose another room.

Before accepting an application, explain exactly what will be required:

• Proof of identity
• Right to Rent evidence
• Proof of income
• Employment information
• Previous-landlord details where applicable
• Recent bank statements where reasonably required
• Guarantor information if applicable
• Deposit and rent-payment arrangements

Check documents as they arrive rather than waiting several days to review the complete application.

Tell the applicant immediately if something is missing. Keep a written record of the decision and apply consistent affordability standards.

From 1 May 2026, landlords and agents in England cannot encourage or accept rental bidding above the advertised rent and generally cannot require more than one month’s rent in advance. These restrictions should be reflected in HMO advertising and applicant procedures. See the current government guidance for private landlords.

Referencing should be thorough, lawful and proportionate. Reducing a void is not a reason to ignore affordability concerns or accept unexplained discrepancies.

Improve tenant retention

The cheapest void is often the one that never occurs.

A landlord who repeatedly replaces tenants without examining why they leave may focus too heavily on advertising and not enough on retention.

Tenants are more likely to remain when:

• Repairs are handled promptly
• The property is clean and secure
• Communication is professional
• Bills and services work reliably
• The household is compatible
• Rent remains reasonable for the property
• Communal areas are properly maintained
• Tenants’ privacy is respected
• Problems between housemates are addressed
• The landlord gives adequate notice of visits

Check in periodically without becoming intrusive. Routine inspections provide an opportunity to identify maintenance issues and ask whether the household is experiencing any practical problems.

If a tenant indicates that they may leave, understanding the reason can reveal a preventable issue. A broken washing machine, unreliable broadband or unresolved cleanliness dispute can be cheaper to address than replacing a good occupier.

Manage the household, not only the individual rooms

Compatibility influences HMO retention.

A room may be attractive, but applicants will also consider whether they can live comfortably with the existing tenants. A household of quiet professionals with early working hours may not suit someone looking for a highly social student house, and neither group is necessarily at fault.

Describe the existing household accurately without disclosing unnecessary personal information.

Consider:

• Typical working patterns
• General age range where appropriate
• Whether the house is quiet or social
• Home-working arrangements
• Cleaning expectations
• Use of communal areas
• Smoking and pet rules
• Whether couples are permitted
• The licensed maximum occupancy

Where existing tenants are cooperative, allowing them to briefly meet a prospective housemate may improve long-term compatibility. The final selection must still follow lawful, consistent criteria.

Do not allow the household to impose discriminatory requirements or make the decision entirely on the landlord’s behalf.

Resolve communal problems early

One disruptive tenant can cause several good tenants to leave.

Common HMO disputes involve:

• Noise
• Cleaning
• Food storage
• Guests
• Heating
• Bathroom use
• Smoking
• Waste disposal
• Parking
• Antisocial behaviour

Set clear expectations at check-in and include appropriate written tenancy terms. Provide a simple process for reporting concerns.

When a complaint arises:

• Establish the facts
• Keep written records
• Communicate with the relevant tenants
• Refer to the tenancy terms
• Take proportionate action
• Avoid disclosing one tenant’s confidential information to another

Since 1 May 2026, assured residential tenancies in England generally operate as periodic tenancies, and landlords require an applicable statutory ground to recover possession. Section 21 is no longer available. Effective selection, documentation and early intervention are therefore particularly important. Read the government’s Renters’ Rights Act guidance.

Plan for seasonal demand

Room demand can fluctuate during the year.

Student demand often follows academic cycles, while graduate and professional moves may be influenced by new jobs, relocation periods and the post-Christmas market.

Where lawful and commercially reasonable, try to avoid having several rooms become available during the weakest period for the property’s target market.

Current assured tenancies generally operate periodically rather than as new fixed terms, so landlords cannot simply impose a fixed end date to engineer future turnover. Instead:

• Record tenants’ likely plans through normal communication
• Ask for notice in accordance with the tenancy and current law
• Begin marketing promptly when valid notice is received
• Maintain an applicant database
• Review previous enquiry levels by month
• Schedule non-urgent improvements during predictable vacancies

Avoid assuming that every summer vacancy will let quickly. Competition may also be higher when many landlords advertise at the same time.

Keep the HMO legally lettable

A room cannot contribute to occupancy if it is not legally suitable for use.

Before advertising, confirm:

• The permitted number of occupiers
• HMO licensing requirements
• Planning use
• Minimum bedroom sizes
• Fire precautions
• Number of bathrooms and kitchen facilities
• Gas and electrical safety
• Smoke and carbon-monoxide alarms
• Furniture safety
• Deposit arrangements
• Insurance occupancy limits

Large HMOs occupied by at least five people forming more than one household generally require mandatory licensing. Smaller properties may also need a licence under a council’s additional licensing scheme. Check the government’s HMO guidance.

Never place an extra tenant in a room merely to improve occupancy where this would breach the licence, planning position or applicable space standards.

Our HMO compliance checklist covers the principal records and safety requirements landlords should monitor.

Track occupancy like a business

Landlords should record more than the total rent received.

For each room, monitor:

Measure	What it reveals
Occupancy rate	How much of the room’s available time produced rent
Average void length	Whether turnaround and marketing are efficient
Enquiries per listing	The level of initial interest
Viewing conversion	Whether enquiries become appointments
Application conversion	Whether viewings produce suitable applicants
Average tenancy length	How effectively tenants are retained
Cost per letting	Advertising, referencing, cleaning and administration
Reason for leaving	Recurring problems affecting retention
Rent achieved	Actual rent rather than the initial asking price
Maintenance turnaround	Whether repairs are delaying occupation

Review each unsuccessful listing rather than automatically renewing it unchanged.

If enquiries are low, examine the rent, headline photograph and platform. If viewings are high but applications are low, examine the room’s presentation, communal areas and household description.

If tenants regularly leave after a few months, the issue may lie with management, compatibility or the condition of the property.

A practical HMO void-reduction checklist

Before notice is received

• Keep the property well maintained
• Respond promptly to repairs
• Monitor tenant satisfaction
• Maintain current photographs and room details
• Track local room rents
• Keep compliance records updated

Once the tenant gives notice

• Confirm the leaving date in writing
• Inspect the room where appropriate
• Identify repairs and decoration
• Agree reasonable viewing arrangements
• Update the advert
• Begin marketing
• Schedule checkout and cleaning

During marketing

• Respond quickly
• Pre-qualify consistently
• Offer practical viewing times
• Follow up after viewings
• Review listing performance
• Adjust presentation or price where necessary

Before the new tenancy begins

• Complete referencing
• Conduct the Right to Rent check
• Provide the written tenancy terms
• Protect the deposit where required
• Serve the prescribed information
• Complete the inventory
• Test alarms
• Confirm the room is clean and ready
• Give the tenant clear move-in instructions

Frequently asked questions

Improve occupancy without lowering standards

Strong HMO occupancy is created before a room becomes vacant.

It begins with a well-maintained property, realistic rent and tenants who feel comfortable remaining in the household. When notice is received, organised marketing, flexible viewings and efficient referencing reduce the gap before the next occupier moves in.

Landlords should be cautious of filling a room simply to restore the headline rent. An unsuitable tenant can cause arrears, complaints and the departure of established housemates, creating a larger occupancy problem later.

The best strategy combines:

• Competitive pricing
• Accurate advertising
• Quick communication
• Efficient room preparation
• Thorough referencing
• Compatible tenant selection
• Responsive property management
• Ongoing performance tracking

Sturstons manages HMOs throughout South East London, including room advertising, tenant enquiries, viewings, referencing, check-ins, inspections and ongoing household management.

To discuss reducing voids in your HMO, contact Sturstons on 0208 108 5974 or request a free management appraisal.