Short-term renting trend adds pressure to landlords

Nearly 1 in 3 letting agents have seen tenants exit long-term contracts early.

Related topics:  Landlords,  Tenants,  Letting Agents
Property | Reporter
15th September 2025
Exit 555
"Stopover tenants are becoming part of the rental landscape, but it doesn’t have to spell disaster for landlords"
- Rachael Doyle - BerkeleyShaw Real Estate

A growing number of letting agents are reporting tenants who sign six- or twelve-month agreements but leave after only a few months. The pattern, often referred to as ‘stopover tenants,’ is creating unexpected void periods and costs for landlords.

Research from property software provider Alto, found that almost a third of agents have experienced this trend directly, with some describing it as a growing issue. More than a quarter of respondents, 27%, believe that government reforms are contributing to short-term renting, with tenants taking homes for work or personal reasons but without plans to stay long term.

As a result, nearly half of agents, 46%, are now advising landlords to prepare for mid-tenancy exits by incorporating new clauses and strategies into contracts.

“This is a rental market in flux,” said Riccardo Iannucci-Dawson, CEO of Alto. “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, also commented on the shift. “Stopover tenants are becoming part of the rental landscape, but it doesn’t have to spell disaster for landlords,” she explained. “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.”

The survey of 250 letting agents highlighted several key challenges landlords are facing:

Early exits and void periods remain top concerns

29% worry about the loss of Section 21 ‘no-fault’ evictions

15% are focused on meeting upcoming EPC changes

Alto, which supports more than 33,000 agents across the UK, has positioned itself as helping firms manage this uncertainty. Its platform offers tools such as automated workflows, rolling contract management, and tenant communications designed to help mitigate disruption.

“Legislative change is always disruptive – but it doesn’t have to be destructive,” noted Iannucci-Dawson. “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.”

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