A new trend is sweeping the rental market and it’s leaving landlords reeling.
Letting agents are warning of a sharp rise in so-called ‘stopover tenants’ – renters who sign six- or twelve-month agreements, but leave after just a few months, leaving landlords to deal with sudden void periods and unexpected costs.
New research from agency software provider Alto, reveals that almost a third of letting agents have seen this trend first-hand, with some describing it as a “growing issue.”
Many believe the Government’s upcoming Renters’ Rights Bill could be making things worse.
More than a quarter of agents (27%) say recent reforms are encouraging a surge in relocation-style renting with tenants taking properties for work or personal reasons, but without any intention of staying long-term.
Almost half of agents (46%) are now actively advising their landlords to plan for mid-tenancy exits, building new clauses and strategies into contracts to protect income.
The survey of 250 UK letting agents also revealed the top concerns keeping landlords awake at night. Alongside early exits and void periods, loss of Section 21 ‘no-fault’ evictions (29%) and looming EPC changes (15%) are among the biggest worries.
Riccardo Iannucci-Dawson, chief executive of Alto, said: “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, added: “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.”
This article is taken from Landlord Today