A growing number of renters are treating long-term tenancies as short-term stopovers – and it’s causing chaos for landlords and letting agents alike
New research by Alto has revealed that nearly 1 in 3 letting agents have seen a rise in so-called ‘stopover tenants’.
Stopover tenants: Renters who sign 6 or 12 month agreements but move out after just a few months.
This might be due to a change in circumstances – perhaps a new job, a house purchase finally completing or a relationship ending – or simply a change of heart.
“This is a rental market in flux,” says 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.”
Why is a rise in ‘stopover tenants’ a big deal?
For landlords, early tenant departures can have a serious financial impact. Empty properties mean lost income, added marketing costs and reduced yields.
For agents, the fallout is just as real: more admin, more negotiations and the risk of dealing with (understandably) frustrated landlords.
Many agents are braced for the issue to worsen once the upcoming Renters’ Rights Bill takes effect, giving tenants greater flexibility to move on sooner, with fixed-term ASTs replaced by open-ended periodic tenancies.
Alongside concerns about the loss of Section 21 ‘no-fault’ evictions and tighter EPC standards, a rise in short-term tenancies is now one of the biggest worries agents have about the reforms.
It’s not all doom and gloom
While it’s a worrying period of uncertainty, there is potentially an upside. With the right approach, the rise of shorter-term tenancies doesn’t have to spell disaster.
Riccardo adds: “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.”
In preparation for a continuation of this trend, almost half of agents (46%) are advising landlords to plan for mid-tenancy exits – building new clauses and strategies into contracts to protect income and minimise disruption.
However, it’s important for agents to take direct action to protect themselves, too. Let’s look at some key strategies to help you do exactly that.
1. Embrace flexibility
Start building flexibility into tenancy agreements and include clear clauses covering notice periods, early exits and re-letting responsibilities. By setting expectations upfront, everyone knows where they stand if and when circumstances change.
With a dedicated letting CRM like Alto, it’s simple to stay on top of the details. Custom workflows and automated reminders make it easy to track key dates, manage renewals and trigger the right actions as soon as a tenant gives notice.
2. Keep in touch with tenants
When it comes to tenancies ending, every day counts. The sooner you know a tenant’s plans, the less disruption it’s likely to cause.
Regular check-ins build trust and keep communication open, making tenants far more likely to give early notice if their circumstances change. A quick conversation can buy you valuable time to prepare for re-marketing and reduce void periods.
It might sound like a whole load of extra admin, but with the right tech, it doesn’t have to be.
As the UK’s most popular CRM for estate agents, Alto ensures tenant comms are organised and effortless – from automated reminders and templated emails to centralised contact records and full communication tracking.
3. Remarket, rapido!
The faster a property is re-marketed and re-let, the less income a landlord loses – and the sooner you can put up that ‘let agreed’ board.
Having a ready pipeline of applicants and strong online visibility makes all the difference. Keeping listings accurate and up to date and responding quickly to enquiries are obvious but crucial steps to ensure tenants are replaced as quickly as possible.
However, managing multiple letting portals, coordinating viewings and producing brochures shouldn’t take up lots of time or cause lots of stress.
With the right CRM in place, you can access integrated marketing tools so you can list properties across major portals instantly, track applicants and fill vacancies in record time.
4. Organise to stay ahead
When a tenant hands in their notice, the last thing you want is to be scrambling around for the right paperwork. Staying organised will help you react quickly, keep everything compliant and show landlords you’ve got everything under control.
Accurate records and up-to-date reporting also make it easier to forecast rental income, identify renewal patterns in real time and plan ahead for any potential voids. The more visibility you have, the better prepared you’ll be to handle short-notice changes.
With smart reporting dashboards and real-time insights, Alto makes it easy to track renewals and notice periods. It also acts as a central hub for all your documentation – neatly organised so you’re always ready for whatever comes next.
5. Stay informed
They say knowledge is power – and with the Renters’ Rights Bill shaking up the industry, agents who stay informed and adaptable will undoubtedly come out ahead.
Keeping contracts, systems and advice aligned with new regulations is key to staying compliant and competitive.
As the legislation evolves and rolls out, it’s important to have a reliable source of truth. Alto continuously updates to reflect the latest legal changes, with smart integrations and dedicated support that keep agents compliant and confident, even in uncertain times.
Act now to turn uncertainty into opportunity
With shorter-term lets on the rise and major rental reforms looming, there’s a lot of change to navigate right now – and it’s understandable if it feels a little daunting. But adapting doesn’t have to mean a mountain of extra work for you or your already stretched team.
Alto gives agents the visibility, automation and support they need to minimise disruption and manage change with confidence.
It’s the key to turning the uncertainty of rising stopover tenants into an opportunity – delivering stronger returns and greater flexibility for both landlords and letting agents.
