Letting agents are warning of a sharp rise in so-called “stopover tenants” – renters who commit to six- or 12-month agreements but leave within just a few months, creating sudden void periods and unexpected costs for landlords.
Research from Alto, the property software provider used by more than 33,000 UK agents, found that nearly a third of letting agents have seen the trend first-hand, with several describing it as a growing problem.
The findings come as ministers prepare to introduce the Renters’ Rights Bill, which many agents fear could exacerbate the issue.
More than a quarter (27%) of respondents believe recent reforms are fuelling a surge in relocation-style renting, with tenants taking properties for work or personal reasons without intending to stay long-term.
PLAN FOR MID-TENANCY EXITS
Nearly half of agents (46%) said they are now advising landlords to plan for mid-tenancy exits by building new clauses and strategies into contracts to protect income.
Riccardo Iannucci-Dawson, chief executive of Alto., says: “This is a rental market in flux. We’re seeing a new kind of tenant – one that’s more mobile than ever before, and a 12-month contract no longer guarantees a 12-month stay.
“Landlords who don’t adapt risk empty properties, lost income, and a whole lot of stress.”
Rachael Doyle, associate director at BerkeleyShaw Real Estate, adds: “Stopover tenants are becoming part of the rental landscape but it doesn’t have to spell disaster for landlords.
“With the right advice and planning, we can put measures in place that minimise disruption and keep properties profitable. With the right strategy, landlords can stay one step ahead and protect their income.”
LANDLORD ANXIETY
Alto’s survey of 250 agents also highlighted broader anxieties among landlords. Alongside early exits and void periods, the loss of Section 21 “no-fault” evictions (29%) and looming EPC requirements (15%) were cited as leading concerns.
Alto said its platform is helping firms adjust to the shifting environment, offering automated workflows to manage rolling contracts, Right to Rent checks and tenant communications.
Iannucci-Dawson adds: “Legislative change is always disruptive – but it doesn’t have to be destructive.
“Handled well, short-term lets can actually put more money in landlords’ pockets. The key is speed and visibility – filling voids fast, keeping tenants happy, and staying on top of the admin.
“With Alto’s lettings progression tools, agents can do exactly that – turning a potential headache into a real opportunity.”
