79% of Landlords on Rolling Tenancies: Why a Hybrid Letting Strategy Is Your Best Defence

The Rolling Tenancy Revolution Is Already Here

If you're a London landlord who still thinks of tenancies as neat, predictable 12-month cycles, the latest data might come as a shock. According to Property Industry Eye, a staggering 79% of UK landlords now have tenants on rolling contracts. That's not a slow trend building in the background. That's the new normal, and it's already reshaping how rental income works in this city.

The catalyst? The Renters' Rights Act has effectively made rolling periodic tenancies the default. Fixed terms are fading, and with them, the comforting certainty of knowing exactly when a tenant will leave (or stay). For London landlords, this creates a very real problem: how do you plan your finances, your maintenance schedule, or your investment strategy when a tenant can hand in notice at almost any time?

The answer isn't to panic. It's to adapt. And the smartest landlords in London are doing exactly that with a hybrid letting strategy.

What Rolling Tenancies Actually Mean for Your Bottom Line

Let's be honest about what's changed. Under a rolling tenancy, your tenant can typically give two months' notice and walk away. There's no penalty, no break clause negotiation, no discussion. They simply leave.

For landlords, this introduces two costly risks:

Tenant churn increases because there's no psychological or contractual incentive for tenants to stay through a fixed period. If they find somewhere cheaper, closer to work, or just fancy a change, they're gone.

Void periods become harder to predict and plan for. When you don't know if your tenant will be there in three months, budgeting for mortgage payments, service charges, and maintenance becomes guesswork.

In a city like London, where mortgage rates remain elevated and operating costs keep climbing, even a single unexpected void month can wipe out a quarter's profit. Multiply that uncertainty across a portfolio, and you can see why so many traditional buy-to-let landlords are feeling the squeeze.

The Hybrid Strategy: Combining Mid-Term and Short-Term Lets

A hybrid letting strategy blends two distinct approaches to create something more resilient than either one alone. Here's how it works in practice.

Mid-Term Corporate Lets (1 to 6 Months)

Mid-term lets target corporate relocations, project-based professionals, insurance placements, and international executives who need furnished accommodation for a defined period. These tenants typically pay above market rent because they value flexibility, quality, and a hassle-free experience.

The beauty of mid-term lets is that they fill the gap between traditional tenancies and nightly bookings. You get higher yields than a standard AST, with less turnover than pure short-term letting. Corporate tenants also tend to treat properties well because their employer's reputation is on the line.

Short-Term Lets (1 to 90 Nights)

Short-term lets, primarily through platforms like Airbnb and Booking.com, allow you to capitalise on London's enormous demand from tourists, business travellers, and visitors. Nightly rates in popular London boroughs can generate two to three times the income of a traditional tenancy on a per-night basis.

The key limitation in London is the 90-day rule, which caps short-term lets at 90 nights per calendar year unless you have planning permission. But within a hybrid model, this isn't a limitation at all. It's a feature.

How the Two Work Together

Picture your property calendar across a full year. You run short-term lets during London's peak tourism months, capturing premium nightly rates during summer, Christmas, and major events. Then you transition into a mid-term corporate let for the quieter months, locking in reliable income without the void risk.

This approach means you're never sitting around waiting for the right long-term tenant. You're never exposed to the rolling tenancy problem because you're not relying on a single tenant's goodwill to keep your income flowing. Instead, you're actively managing demand across multiple channels to maximise occupancy and yield throughout the year.

What Landlords Need to Watch For

A hybrid strategy sounds appealing, and it genuinely is, but it comes with complexity that you need to respect.

Regulatory compliance is non-negotiable. You need to understand the 90-day rule, any borough-specific licensing requirements, and your obligations around safety certificates, insurance, and tax reporting. Getting this wrong can result in fines or worse.

Furnishing and presentation matter enormously. Corporate tenants and short-term guests expect a higher standard than most traditional tenants. Professional photography, quality linens, fast WiFi, and a well-equipped kitchen aren't optional. They're the baseline.

Guest and tenant management requires responsiveness. Short-term guests expect check-in instructions, quick replies, and fast resolution of any issues. Mid-term tenants need a smooth onboarding process and a reliable point of contact. Managing both simultaneously is a serious operational commitment.

Pricing strategy is where many landlords leave money on the table. Dynamic pricing for short-term lets requires constant market monitoring, while mid-term rates need to be competitive enough to attract quality tenants without underselling your property.

This is exactly where the DIY approach starts to break down. Most landlords simply don't have the time, tools, or local expertise to juggle all of this effectively.

Why Professional Management Changes Everything

Here's the honest truth: a hybrid strategy is the most profitable approach for London landlords in 2026, but only if it's executed properly. The difference between a well-managed hybrid property and a poorly managed one can easily be £10,000 to £20,000 per year in lost income.

That's why landlords across London are turning to companies like Airhosts to handle the operational complexity while they enjoy the financial rewards.

With Airhosts, your property is professionally managed across both short-term and mid-term channels. That means expert pricing optimisation, compliant listing management, professional guest communications, cleaning coordination, maintenance oversight, and detailed financial reporting. You get the yield benefits of a hybrid strategy without the day-to-day workload.

Compare that to the traditional buy-to-let model, where you're now at the mercy of rolling tenancies, unpredictable voids, and declining real yields after costs. The contrast is stark.

The Bottom Line for London Landlords

The rental landscape has fundamentally shifted. Rolling tenancies aren't a temporary inconvenience. They're the permanent reality of the UK rental market. Landlords who cling to the old model of "find a tenant, sign a contract, hope for the best" are going to see their returns erode year after year.

A professionally managed hybrid strategy turns that uncertainty into opportunity. By combining premium short-term lets with stable mid-term corporate bookings, you create a diversified income stream that's resilient, high-yielding, and completely hands-off.

Ready to stop worrying about rolling tenancies and start maximising your London property's potential? Get in touch with Airhosts today for a free property assessment and discover exactly how much more your property could be earning. Your investment deserves better than uncertainty.