PI's: Vacant Dwellings Rent Lost
Allocations & Lettings: Vacant Dwellings Rent Lost
GNPI 30: Percentage of rent lost through dwellings being vacant – GN only
HMSH 30: Percentage of rent lost through dwellings being vacant – Supported Housing
HMHO 30: Percentage of rent lost through dwellings being vacant – HfOP/Sheltered
BV69: Percentage of rent lost through dwellings being vacant – GN & HfOP/Sheltered
Rationale, Definition & Worked Example
Below you can find information regarding the rationale, definition and formula for this performance indicator. This includes a worked example to demonstrate how this indicator should be calculated.
Rationale
This indicator identifies how much money is being lost through inefficient turnaround of properties for letting.
Definition
This measure calculates the amount of rent and service charges lost through relevant properties being vacant as a percentage of the total rent roll. The rent roll is the total amount of potential rent and service charges collectable for the period for all dwellings managed by the landlord, if all dwellings had been occupied.
The dwelling may have been vacant for any reason, and includes dwellings that are unavailable to let. However, for dwellings that are unavailable to let and are not expected to be let as social dwellings again, the rent and service charges should be zeroed out. For example, properties awaiting demolition. These properties should be excluded from both the numerator and the denominator of this calculation.
Voids may be omitted where they are legitimately in an unlettable condition.
Eg fire, flood or at the end of their useful life and awaiting refurbishment.
The dwelling may have been vacant for any reason, and includes dwellings that are unavailable to let. However, for dwellings that are unavailable to let and are not expected to be let as social dwellings again, the rent and service charges should be zeroed out. For example, properties awaiting demolition. These properties should be excluded from both the numerator and the denominator of this calculation.
Voids may be omitted where they are legitimately in an unlettable condition.
Eg fire, flood or at the end of their useful life and awaiting refurbishment.
Formula
(A / B) * 100
Where A = The value of rent and service charges lost year-to-date due to dwellings being vacant.
And where B = The actual year-to-date gross rent and service charges receivable.
Where A = The value of rent and service charges lost year-to-date due to dwellings being vacant.
And where B = The actual year-to-date gross rent and service charges receivable.
Worked Example
By the end of September, £1,500 of rent and service charges have been lost due to dwellings being vacant over the past 6 months. The annual gross rent roll for this year is £1,000,000, so the year-to-date gross rent due is £500,000.
Percentage of rent lost through dwellings being vacant = (1,500 / 500,000) * 100 = 0.30%
Percentage of rent lost through dwellings being vacant = (1,500 / 500,000) * 100 = 0.30%