Change is on the horizon — and if you rent out your property, you’ll want to pay close attention. Starting 19 May 2025, new rental laws will come into effect that among other changes reshape how and when landlords can end tenancies, particularly when it comes to switching between long-term leases and short-term holiday rentals.
Here’s what you need to know to stay ahead of the game and keep your rental plans running smoothly.
What’s Changing?
Landlords will now need a valid, genuine reason to end a tenancy — and it’s officially an offense to issue a termination notice without one. This applies to both fixed-term and periodic agreements.
Some examples of acceptable reasons include:
• A breach of the tenancy agreement
• The property is being sold
• Major repairs or renovations that make the home uninhabitable
• The landlord or a family member moving in
• The property will no longer be used as a rental residence (also called “use of property for another purpose”)
This last point is where things get especially interesting for owners who juggle long-term leases in the quiet months and short-term holiday rentals in peak season.
Short Stays vs Long-Term Rentals — What’s the Difference?
A short stay (or short-term letting) generally means renting out your property for less than 90 days — think weekend getaways, week-long stays, or business trips booked through platforms like Airbnb, Stayz or direct holiday bookings.
By contrast, long-term rentals are typically leases of more than 90 days, governed by formal tenancy agreements designed to protect both landlords and tenants.
The Big Impact: 12-Month Exclusion Period
Here’s the game changer:
If you end a long-term tenancy to switch to a short-stay or holiday rental, the new laws impose a 12-month exclusion period before you can list the property on the short-term market again.
In plain terms:
• You can still end a lease to change the use of the property (for example, to move into holiday rentals).
• But you can’t immediately jump back into short stays — you’ll need to wait a full year before the property is eligible for short-term letting again.
Why Does This Matter for You?
For many homeowners, the ability to switch between long-term tenants in the off-season and holiday guests during peak months has been a smart way to maximise income.
But with the new exclusion period, that flexibility is about to change. Here’s what it means for you:
• You’ll need to plan your leases more carefully to avoid getting caught out.
• If you end a long-term lease, you’ll need to wait 12 months before you can return to short-term or holiday letting — which could impact your income during that time.
• Last-minute changes between long-term and short-stay rentals will no longer be an easy option.
In short, careful planning is now more important than ever to keep your rental strategy on track.
How Can You Get Ready?
1. Plan ahead
Take a good look at your current lease terms and your future goals. Do you want to keep the option of short-term letting open? Make sure your plans and agreements reflect that.
2. Rethink your rental strategy
Consider how the new rules will affect your seasonal approach. If you usually balance long-term rentals in winter with holiday bookings in summer, you may need to explore alternative strategies or adjust your timelines.
3. Get expert advice
Your property manager, holiday letting agent, or legal advisor can help you navigate the changes, protect your income, and avoid costly missteps.
The Takeaway
These new laws mark a significant shift in the rental landscape, but with a proactive approach, you can still make the most of your investment. The key is planning ahead and understanding your options — because the days of last-minute switches between long-term tenants and short-stay guests are coming to an end.
If you’re unsure how this will affect you or want help adjusting your rental strategy, we’re here to help! Reach out to our team and let’s work together to make sure you’re ready for this new chapter in the rental market.
