Key Takeaways:

• Mid-term letting fills the gap between short-term and long-term letting, providing flexibility and steady rental income.
• Midlets target professionals, including corporate clients, students, lecturers, researchers, digital nomads, and transitional tenants. These usually seek temporary accommodations lasting 3-6 months.
• Landlords benefit from fewer void periods and management demand as turnovers are not as frequent as shortlets.
• Midlets have a yield advantage because they use flexible rates that can be adjusted seasonally. This allows you to capture higher market prices, leading to higher yields.
• A strong marketing strategy and streamlined management can boost your mid-let’s visibility and profit potential.

The Demand for Mid-Term Letting in London

Mid-term letting is a rental agreement that usually lasts between 3 to 6 months. With City Relay, our midlet agreements last for up to 179 days, while some property management companies extend them to 8 months.

This letting strategy finds the sweet spot between short-term letting (up to 3 months) and long-term letting (over 6 months). 

Mid-term letting offers a steady flow of income but with fewer management demands, thus increasing profit margins.

Like shortlets, midlets are fully furnished but do not require frequent turnover, as each lease term lasts at least 3 months. There’s no need for constant cleaning and maintenance, so management costs are lower. This leads to a more stable rental income and higher occupancy rates. With lower void periods, annual yields are higher than those for shortlets.

When it comes to longlets, midlets can be more dynamic with their pricing strategy. Landlords can adjust rental rates regularly to maximise profits in line with seasonal and market demands.

Because of these factors, mid-term letting is becoming a popular option for landlords and property owners in London. This allows them to maximise rental yields despite the 90-day limit, while enjoying a higher rate than with long-term letting.

The Mid-Term Rental Market Profile in London

London enjoys an influx of travellers and visitors each year. It’s one of the top destinations in the world—and this is why mid-term letting is thriving in this city. From business travellers and digital nomads to students and relocators, demand for fully furnished properties remains high.

With growing competition, it’s important to make your property stand out so you can capitalise on its rental income potential. This means understanding the profile of the mid-term tenants you want to attract. This will allow you to identify their needs and tailor your midlet to their requirements.

Corporate clients

Mid-term rentals are perfect for corporate letting. Companies often lease properties in London for employees for business projects, training programs, or relocation. They need properties that can be leased for months, and they look for comfort, convenience and proximity to business districts or at least, public transport. Fully furnished midlets fit their requirements.

To attract corporate tenants, your property should be fully furnished and equipped with reliable Wi-Fi. You should also offer professional cleaning, in case the tenant would like it. Flexible billing options are also appealing to corporate clients, so make them available.

Transitional tenants

These could be individuals or families who are in between moves. Maybe they have sold their home and their new purchase hasn’t yet been completed. Or they could be in the middle of a home renovation and require a midlet to stay in for the meantime. This type of tenant may not require a fully furnished unit.

Transitional tenants look for properties that are ready for move-in. It should have comfortable interiors and maybe access to local amenities, schools and public transport.

Digital nomads

These remote professionals don’t just hop from one place to another. Sometimes, they choose to stay in one place for a couple of months to truly enjoy the local scene. Those who want to spend several months in London can choose mid-term rental accommodations.

Attracting digital nomads is the same as attracting corporate tenants. The property should have reliable Wi-Fi and a home office. Proximity to co-working spaces is also a bonus. Of course, being near public transport is a must, as digital nomads want to explore London during their stay.

Students, lecturers and researchers

London’s universities and colleges attract International students, lecturers and researchers. These people usually stay for up to 10 months, making them the perfect tenants for mid-term rentals.

These tenants are looking for fully furnished rentals that are near universities or public transport. They also need a reliable Wi-Fi and a home office so they can do their work or studies comfortably. Offering flexible lease terms will also be appealing, as their schedule will depend on the academic school year.

Did you know: 

As the Renters’ Rights Bill, which prioritises tenant security and choice, moves closer to becoming law, landlords may need to adopt a flexible letting approach to maintain high occupancy rates.

The Key to Mid-Term Letting Success

Managing mid-term rentals is less involved than managing short-term rentals. However, it still requires efficient property management to maintain high occupancy rates and tenant satisfaction.

Partnering with property management companies like City Relay can enhance your letting strategy. There are several reasons why this will add value to your rental business.

• Higher occupancy rates and rental income. Data-driven strategies can identify the best pricing approach to meet the current demand. This reveals the optimal time to raise or lower rental rates to make them more appealing to tenants, even during the low season.
• Efficient operations. Midlets need professional property upkeep, tenant support and paperwork. Property experts have streamlined operations that ensure all these tasks are handled in a timely and efficient manner. Stress-free operations ensure high tenant satisfaction without daily landlord involvement.
• Full legal compliance. The London private rental sector is heavily regulated. Property experts stay up to date on any changes so your property remains compliant with licensing requirements, safety checks, industry standards, and other legal documentation. This will protect you from paying unnecessary penalties and fees.
• Effective marketing and tenant vetting. Professional property management companies have tried-and-tested marketing plans that make your property visible across multiple platforms. City Relay also help mid-term rentals with professional photos and descriptions to ensure their property listings are appealing to their target tenants. Not only that, inquiries are promptly addressed, and tenants undergo a strict vetting process to ensure reliable, responsible occupants.
• Regular performance monitoring. Tech-driven systems like Opago, which City Relay uses, enable real-time monitoring of property data. From occupancy rates to maintenance and financial reports, you’ll have complete transparency and control over your property’s performance.

FAQs About Mid-Term Letting in London

How long does a mid-term rental agreement in London last?

Mid-term letting agreements usually last from 3 to 6 months. Some extend until 8 months. This length is ideal for corporate professionals, students, digital nomads and transitional tenants. It also offers flexibility for both landlords and tenants.

Is mid-term letting profitable in London?

Yes, mid-term letting is profitable in London because of high demand from corporate clients, international students, and members of the academe (e.g. lecturers and researchers). Lower management demands also mean lower operational costs and higher profit margins.

Does the 90-day rule apply to mid-term rentals?

No, only short-term rentals are mandated to comply with the 90-day rule. Mid-term rental properties do not require a special license. However, midlets are expected to comply with local safety and housing standards to continue operating as rental properties.

How can I attract responsible mid-term tenants?

Understand what tenants look for in mid-term rentals. For instance, students, corporate professionals, and digital nomads need a home office and reliable Wi-Fi. They would also need a fully furnished property that’s near public transport, business hubs or educational institutions. You need to highlight these in your property listing to attract the right tenant.

Maximise Your Rental Asset Through Mid-Term Letting

Mid-term letting is a profitable strategy. The flexibility meets the evolving tenant preferences, while the stable rental income makes it an appealing letting model for landlords. It can be a great way to grow your portfolio, as long as it is managed and marketed properly.

Working with an experienced property management company like City Relay will ensure a successful mid-term letting for your property. We’ll manage the details, market your property and ensure a high-performing rental business with high tenant satisfaction.

Whether you’re venturing into mid-term letting for the first time or you want to try flexible letting, now is the perfect time to find a partner to help you manage it. 

Discover how City Relay can help you maximise your rental yields through mid-term letting. Get a free rental estimate now.