Landlords hit by surge in tenants leaving contracts early

Landlords and letting agents are experiencing a sharp rise in tenants leaving their contracts early, new research suggests.

More renters are signing six or 12-month agreements and leaving after just a few months, according to property software provider Alto.

Tenants leaving contracts early can cause a headache for landlords due to unexpected void periods and extra costs.

A ‘growing issue’ for landlords

Almost a third of letting agents have experienced the trend of tenants leaving early and unexpectedly. 

As a result, 46 per cent of agents are actively encouraging their landlords to plan for mid-tenancy exits. Landlords are also being advised to build new clauses and strategies into their tenancy contracts to protect income. 

“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,” said Riccardo Iannucci-Dawson, CEO of Alto.

Letting agent Rachael Doyle, Associate Director at BerkeleyShaw Real Estate, added that this growing trend shouldn’t spell disaster for landlords.

“With the right advice and planning, we can put measures in place that minimise disruption and keep properties profitable,” she said.

Many tenants still stay for the long-term

Despite many letting agents experiencing tenants leaving their landlords’ properties just months into longer contracts, our research found that the majority of tenants stay for longer than the initial term.

Almost a third (31 per cent) of landlords’ tenants tend to live in their properties for an average of more than five years, according to the Simply Business Landlord Report 2025.

Meanwhile, 47 per cent stay for between two years and five years. Our survey of over 1,000 landlords found that on average, just three per cent of tenants stay in a landlord’s property between three and six months.

Tenant longevity is a key indicator of a healthy rental business – suggesting both happy tenants and a stable income stream for landlords.

Renters’ Rights Bill: changes to tenancy contracts incoming

The specific issue of tenants leaving six or 12-month contracts early will no longer be a problem for landlords once the measures in the Renters’ Rights Bill (RRB) are introduced. 

The RRB plans to make all tenancies periodic. This means fixed-term tenancies of six or 12 months won’t be allowed and no tenancies will have a defined end date. 

For a renter to break a tenancy agreement, they’ll need to give two months’ notice. If a landlord wants to end a tenancy, they’ll have to serve a Section 8 eviction notice. 

With this in mind, landlords will need to prepare by making their tenancy agreements reflect the periodic system. They’ll also need to consider how they’ll manage tenants leaving contracts early in the same way they do now.

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