Stuck With an Unsold Property? How Mid-Term Corporate Rentals Can Rescue London Landlords From the Reletting Ban

A Perfect Storm Is Brewing for London Landlords

If you're a London landlord who's been thinking about selling up, you've probably already heard the bad news. Recent analysis covered by The Telegraph reveals that over 100,000 landlord properties across London could be caught in a brutal trap created by the Renters' Rights Act. Here's the problem in plain English: if you evict a tenant using Ground 1A (the "selling" ground), you're hit with a mandatory 12-month ban on reletting the property. And with 51% of rental properties currently failing to sell, that leaves a staggering number of landlords stuck with empty homes they can neither rent out nor offload.

That's dead capital sitting in bricks and mortar, earning nothing.

But there is a way through this. Mid-term corporate rentals have emerged as one of the most practical strategies for generating income from unsold properties without triggering the reletting ban. Let's dig into how this works, what you need to watch out for, and whether it's truly the best option available.

What Exactly Is the 12-Month Reletting Ban?

Under the Renters' Rights Act, if you serve notice to a tenant on the grounds that you intend to sell the property, you are legally prohibited from reletting it for 12 months. The intention behind this is to stop landlords from using the "selling" ground as a back door to remove tenants they simply don't want.

The problem? The property market doesn't always cooperate. If your property sits on the market and doesn't sell (which, again, happens to more than half of all listed rental properties in London right now), you're left in limbo. No tenant, no rental income, no buyer, and a mortgage that still needs paying every month.

For landlords with multiple properties, this can become a serious financial crisis.

How Mid-Term Corporate Rentals Offer a Workaround

Mid-term rentals, typically lasting between one and six months, occupy a sweet spot between traditional tenancies and short-term holiday lets. They're particularly popular with corporate clients, relocating professionals, project teams, and international workers on temporary assignments in London.

Here's why they matter in the context of the reletting ban: because mid-term corporate lets don't typically fall under an Assured Shorthold Tenancy (AST), they may not trigger the same reletting restrictions. The ban specifically targets the creation of a new tenancy of the type regulated under the Renters' Rights Act. A properly structured mid-term let, particularly one provided as a licence to occupy or a company let, can sit outside this framework.

The Key Benefits

Income from otherwise idle assets. Rather than watching your property sit empty and haemorrhage value through mortgage costs, service charges, and council tax, you can generate meaningful revenue. Mid-term corporate lets in London typically command 20 to 40% more per month than a standard AST, especially when the property is furnished to a high standard.

Flexibility to sell when the market turns. Because mid-term lets are shorter by nature, you retain the ability to bring the property back to market relatively quickly once buyer appetite returns.

High-quality tenants. Corporate tenants tend to treat properties well, and their stays are often backed by employer guarantees. This means lower wear and tear and more reliable payments.

No void periods if managed well. With the right marketing and management partner, it's entirely possible to chain mid-term bookings back to back, keeping occupancy rates high throughout the year.

The Pitfalls You Need to Watch

Mid-term rentals aren't without their complexities, and it's important to go in with your eyes open.

Legal structuring matters enormously. If your mid-term let is poorly structured and inadvertently creates an AST, you could find yourself in breach of the reletting ban. You need proper legal advice to ensure your agreements are watertight. This is not an area where DIY templates will serve you well.

Furnishing and presentation costs. Corporate tenants expect a higher standard than your average long-term renter. You'll likely need to invest in quality furniture, linens, fast Wi-Fi, and a move-in-ready setup.

Ongoing management is intensive. Between guest communications, check-ins, cleaning turnovers, and maintenance coordination, mid-term lets require considerably more hands-on management than a traditional tenancy. For landlords who are used to collecting rent once a month and doing very little else, this can come as a shock.

Demand can be seasonal. While London's corporate rental market is strong year-round, there are quieter periods. You'll need a pricing strategy that adapts to market conditions.

When Mid-Term Lets Start to Feel Like Hard Work

Here's the honest truth: mid-term corporate rentals are a solid strategy, but they come with a management burden that many landlords underestimate. Finding corporate clients, vetting them, managing contracts, coordinating professional cleaning between stays, handling maintenance issues at speed, and ensuring your property meets the expected standard every single time is essentially a part-time job.

And this is where many landlords start to wonder whether there's a simpler, more profitable option.

The Case for Professionally Managed Short-Term Lets

Short-term lets, when managed professionally, combine the flexibility benefits of mid-term rentals with significantly higher income potential. In central London, a well-managed short-term let can generate two to three times the revenue of a traditional tenancy. And like mid-term lets, they can be structured to fall outside the scope of AST regulations, helping you stay clear of the reletting ban.

The difference? With a professional management company handling everything, you don't lift a finger.

At Airhosts, we manage every aspect of the short-term letting process for London landlords. From listing optimisation and dynamic pricing to guest screening, professional cleaning, and 24/7 guest support, we turn your property into a high-performing, hands-off income stream. Our landlords consistently see yields that outperform both traditional tenancies and self-managed mid-term lets, without any of the operational headaches.

For landlords caught in the reletting ban trap, this is particularly relevant. Rather than letting a property sit empty while you wait for a buyer, or wrestling with the complexities of structuring corporate lets yourself, partnering with Airhosts gives you an immediate path to income with full regulatory compliance baked in.

The Bottom Line for London Landlords

The Renters' Rights Act has created a genuinely difficult landscape for landlords who want to sell. The 12-month reletting ban is punishing, and with more than half of rental properties failing to sell, the financial impact is real and growing. Mid-term corporate rentals offer a viable route to generating income, but they come with legal complexity and a management workload that catches many landlords off guard.

Professionally managed short-term lets offer the same flexibility, better returns, and none of the day-to-day hassle.

If your property is sitting empty, costing you money, and going nowhere on the sales market, it's time to make it work for you. Airhosts helps London landlords turn stalled assets into consistent, high-yield income with zero stress and full professional support. Get in touch today and find out exactly what your property could earn.