Letting brokers are warning of a pointy rise in so-called ‘stopover tenants’ – renters who signal six- or 12-month agreements however depart after just some months.
Nearly a 3rd of letting brokers have seen this pattern first-hand, with some describing it as a “rising concern”, analysis from software program supplier Alto has revealed.
Riccardo Iannucci-Dawson, chief government of Alto, mentioned: “It is a rental market in flux.
“We’re seeing a brand new type of tenant – one which’s extra cell than ever earlier than, and a 12-month contract now not ensures a 12-month keep.
“Landlords who don’t adapt threat empty properties, misplaced earnings, and a complete lot of stress.”
Many are fearful the federal government’s upcoming Renters’ Rights Invoice may make issues worse.
Greater than 1 / 4 of brokers (27%) say current reforms are encouraging a surge in relocation-style renting with tenants taking properties for work or private causes, however with none intention of staying long-term.
Practically half of brokers (46%) at the moment are actively advising their landlords to plan for mid-tenancy exits, constructing new clauses and methods into contracts to guard earnings.
Rachael Doyle, affiliate director at BerkeleyShaw Actual Property, added: “Stopover tenants have gotten a part of the rental panorama, however it doesn’t need to spell catastrophe for landlords.
“With the correct recommendation and planning, we will put measures in place that minimise disruption and maintain properties worthwhile, with the correct technique, landlords can keep one step forward and shield their earnings.”
