Landlords are facing mounting financial pressures as a rising number of tenants abandon fixed-term rental agreements well before their expiry, new research suggests.
A survey of 250 letting agents by property software provider Alto found that nearly a third had dealt with tenants leaving six- or 12-month contracts after only a month or two. Agents described the phenomenon – known as “stopover tenants” – as an emerging trend that is leaving landlords exposed to unplanned void periods and additional costs.
Concerns are being compounded by the government’s proposed Renters’ Rights Bill. More than a quarter of agents said the reforms were already encouraging short-term rentals, with tenants securing accommodation for temporary work or lifestyle reasons without intending to remain long term. Almost half of agents are now advising landlords to prepare for early departures by revising tenancy clauses and strengthening their management strategies.
Riccardo Iannucci-Dawson, chief executive of Alto, said the market was undergoing a fundamental shift. “A 12-month contract no longer guarantees a 12-month stay,” he said, warning that landlords who fail to adapt risk “empty properties, lost income and a whole lot of stress”.
He added that, while legislative change can be disruptive, short-term lets could prove profitable if landlords prioritise speed in filling vacancies and maintaining tenant satisfaction.
Rachael Doyle, associate director at BerkeleyShaw Real Estate, said stopover tenants were now part of the rental landscape. “With the right advice and planning, we can put measures in place that minimise disruption and keep properties profitable,” she said.
Alongside concerns about short-term renting, the survey found landlords remain uneasy about the planned abolition of Section 21 “no-fault” evictions and forthcoming energy performance regulations.