Void Period Costs Have Doubled: Why London Landlords Are Turning to Mid-Term Rentals

Void Costs Are Climbing, and London Landlords Are Feeling the Pinch

If you're a London landlord, the latest figures from Simply Business probably won't make for comfortable reading. Rental void period losses have doubled across England, now averaging £1,135 per occurrence. That's a significant hit to your bottom line every time a tenant moves on and your property sits empty.

And here's what makes this even more pressing: the Renters' Rights Act has fundamentally changed the game. Under the new periodic tenancy structure, your tenants can leave on just two months' notice at any point. No more relying on fixed-term agreements to give you a predictable income runway. Instead, you're facing a world where tenant departures are more frequent, less predictable, and more expensive than ever before.

So what can landlords actually do about it? One strategy gaining serious traction in London is mid-term rentals, and it's worth understanding exactly how they work before deciding if they're right for your property.

What Are Mid-Term Rentals, and How Do They Work?

Mid-term rentals occupy the sweet spot between traditional long lets and nightly short-term bookings. We're typically talking about stays of one to three months, sometimes stretching to six. The guests aren't tourists, they're professionals on corporate relocations, insurance housing tenants displaced from their own homes, contractors on fixed-duration projects, or families in transition between properties.

The key difference from a traditional buy-to-let is the booking pipeline model. Rather than relying on a single tenant and hoping they stay for years, a mid-term rental strategy keeps your property cycling through a continuous stream of bookings. When one guest's stay ends, the next is already confirmed or close to it.

This is exactly why the strategy is so appealing in the current climate. You're not sitting around waiting weeks or months for a replacement tenant while your mortgage payments keep ticking. The pipeline approach means you're proactively filling your calendar rather than reactively scrambling after a surprise departure.

The Real Advantages for London Landlords

Eliminating Traditional Void Risk

The biggest draw is obvious. If your property is booked in rolling one to three month blocks, the concept of a void period starts to disappear. You're not dependent on one tenant's decision to stay or go. At Airhosts, we've seen landlords move from anxious waiting games to consistently booked calendars simply by shifting their strategy.

Higher Rental Income

Mid-term rentals in London typically command a premium over standard AST rents. Corporate tenants and insurance companies expect to pay more for furnished, flexible accommodation, and they do. Depending on the location and property type, landlords can see 20% to 40% more income compared to a traditional long let.

Better Tenant Quality

Corporate relocations and insurance placements usually come through agencies that vet their clients thoroughly. You're less likely to deal with problem tenants, and the professional nature of these stays often means your property is well looked after.

Regular Property Inspections

With guests turning over every few months, you naturally get regular access to your property. Small maintenance issues get spotted and fixed before they become expensive problems.

What You Need to Know Before Diving In

Mid-term rentals aren't a magic solution without trade-offs. Here's what London landlords should consider carefully.

Furnishing and Setup Costs

Your property needs to be fully furnished to a high standard. We're talking quality furniture, a fully equipped kitchen, fast Wi-Fi, and often extras like smart TVs and workspace setups. The initial investment can be significant, though it pays for itself quickly if you're pricing correctly.

Management Intensity

This is where things get real. Managing a mid-term rental is substantially more work than a long let. You're handling more frequent changeovers, coordinating professional cleans, managing listings across multiple platforms, responding to enquiries, and dealing with the logistics of key handovers and check-ins. Every transition between guests requires attention to detail.

Regulatory Awareness

London's short-term letting rules can apply depending on how you structure your bookings. While stays over 90 days generally fall outside the 90-day rule for short-term lets, you need to understand the boundaries clearly. Mortgage lender and insurance requirements also need checking, as not all policies cover this type of letting.

Income Gaps Still Happen

Let's be honest. Even with a pipeline approach, gaps can occur. Demand fluctuates seasonally, and if you're self-managing, maintaining a truly continuous booking calendar requires constant effort and market knowledge. January might be buzzing with corporate relocations, while August could be quieter.

When Mid-Term Becomes Complex, Short-Term Becomes Compelling

Here's what many landlords discover after exploring mid-term rentals: the strategy works, but the management burden is real. You're essentially running a small hospitality business, and doing it well requires time, expertise, and systems that most individual landlords don't have.

This is precisely why a growing number of London landlords are looking at professionally managed short-term lets as the next logical step. A well-managed short-term let strategy takes everything that makes mid-term rentals attractive, the higher income, the elimination of void periods, the continuous booking pipeline, and amplifies it further.

Short-term lets, when managed by experienced professionals, can generate 30% to 60% more than traditional rental income. The booking pipeline becomes even more robust because you're tapping into a broader market that includes business travellers, tourists, and short-stay professionals alongside the mid-term corporate crowd. Seasonal dips get smoothed out through dynamic pricing and multi-platform distribution.

The catch? Doing this yourself is genuinely demanding. But that's exactly what professional management companies exist to solve.

The Airhosts Approach: High Yield Without the Headaches

At Airhosts, we manage the entire short-term letting process for London landlords who want the income benefits without the operational complexity. From professional photography and listing optimisation to guest communications, cleaning coordination, dynamic pricing, and regulatory compliance, we handle every detail so you don't have to.

Our landlords don't worry about void periods. They don't chase bookings. They don't field late-night guest messages. They simply receive their rental income, which consistently outperforms what they were earning from traditional tenancies.

With void costs doubling and the Renters' Rights Act making traditional letting less predictable than ever, the landlords who adapt their strategy now will be the ones who protect and grow their returns in the years ahead.

If you're a London landlord tired of void periods eating into your profits, it's time for a conversation. Get in touch with Airhosts today and find out exactly how much more your property could be earning with professional short-term let management.