Tenant Turnover Cost
Every time a tenant leaves, there is a cluster of costs: a void period with no income, re-letting fees, cleaning and redecorating costs, and potentially some refurbishment. When expressed as an annual cost amortised over a tenancy, tenant turnover is one of the most significant but hidden costs in a landlord's P&L. This calculator converts your expected turnover events into an annual cost and shows what percentage of rent it represents.
Why this matters
A landlord with annual turnover loses 8–15% of rent to turnover costs. Keeping tenants for 2–3 years instead of 1 year can be worth £2,000–£5,000 per property — a powerful incentive to invest in the tenant relationship.
Key points
- Tenant turnover costs include: void period, letting agent re-let fee, cleaning, redecorating, and appliance replacement
- Average re-let agent fee is 4–6 weeks of rent; full management includes re-lets
- Even a 2-week void between tenancies costs 3.8% of annual rent
- Professional cleaning after each tenancy typically costs £150–£400 depending on property size
- Redecoration between tenancies is common, especially after 3+ year tenancies
- Long-term tenants reduce turnover costs dramatically — investing in the relationship has a clear return
Frequently asked questions
What are typical tenant turnover costs for a buy-to-let?
A typical turnover event costs: 2–6 weeks of lost rent during void, letting agent re-let fee (4–6 weeks of rent), professional cleaning (£150–£400), redecorating (£300–£1,000), and minor repairs or replacements (£200–£500). Total: often £1,500–£4,000 per turnover event.
How can I encourage tenants to stay longer?
Keep the property well-maintained and respond quickly to issues. Be fair and transparent on rent reviews. Consider offering small incentives for long tenancy (e.g. a professional clean as a courtesy). Allow long-term fixtures where possible (e.g. allow tenants to paint walls). A good relationship is the most powerful retention tool.
Does frequent tenant turnover affect mortgage lenders?
No — lenders do not monitor tenancy continuity. However, frequent voids and turnover reduce the actual income the property generates, which affects your profitability and the cashflow that mortgage stress tests are designed to assess.
Are tenant turnover costs tax-deductible?
Many turnover costs are deductible: re-letting agent fees, professional cleaning, repairs. Redecorating is generally deductible as maintenance. Improvements or significant upgrades are capital expenditure. Keep receipts for all costs.