Letting brokers are warning of a pointy rise in so-called ‘stopover tenants’ – renters who signal six- or 12-month agreements however depart after only a few months.
Virtually a 3rd of letting brokers have seen this development first-hand, with some describing it as a “rising subject”, analysis from software program supplier Alto has revealed.
Riccardo Iannucci-Dawson, chief govt of Alto, stated: “It is a rental market in flux.
“We’re seeing a brand new form of tenant – one which’s extra cellular 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 revenue, and a complete lot of stress.”
Many are anxious the federal government’s upcoming Renters’ Rights Invoice might 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.
Almost half of brokers (46%) at the moment are actively advising their landlords to plan for mid-tenancy exits, constructing new clauses and techniques into contracts to guard revenue.
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 appropriate recommendation and planning, we are able to put measures in place that minimise disruption and preserve properties worthwhile, with the appropriate technique, landlords can keep one step forward and shield their revenue.”
