The Cheapest Tenant is the One You Already Have

Most landlords think of tenant turnover as a minor inconvenience. A few weeks of vacancy, some cleaning, a new listing. But the real cost of losing a tenant is far higher than the visible gap between move-out and move-in. It's one of the most overlooked drains on rental yield.

The Hidden Math of Turnover

Start with the obvious: the void period. A single month empty on a £1,200/month property is £1,200 lost. That's straightforward. But the actual cost of turnover stacks much higher.

There's the letting fee if you use an agent — typically half to one full month's rent. There's the cost of refreshing the property: professional cleaning, minor repairs, maybe a fresh coat of paint. Call that another £300–£500.

Then there's your time. Writing ads, responding to enquiries, scheduling viewings, vetting applications, handling references, signing new contracts. If you value your time at all, this is easily another few hundred pounds in hidden labour.

Add them up: a single tenant changeover can cost £2,000–£3,000, even when everything goes smoothly. On a property netting £1,000/year, that's two to three years of profit erased by one departure.

Why Good Tenants Leave

Here's what most landlords miss: tenants don't usually leave because of the rent. They leave because of the experience.

Slow repairs. Ignored messages. Rent increases that feel arbitrary. A sense that the landlord doesn't care, or worse, is actively difficult. These are the real reasons good tenants start browsing listings.

The irony is that landlords often spend more time trying to find perfect tenants than keeping the ones they have. A 4% rent increase might net you an extra £50/month. But if it pushes a good tenant to leave, you've just traded £600/year for a £2,500 loss.

Retention as a Strategy

Treating tenant retention as a strategy changes how you operate. It means responding to maintenance requests quickly — not because you're obligated, but because responsiveness builds loyalty. It means reviewing rent annually but doing so fairly, ideally with reference to the local market.

It means small investments in the property: a new shower head, a coat of paint in the hallway, a working thermostat. These things cost little but signal that the home is cared for. Tenants notice.

It also means communication. A tenant who feels heard is less likely to leave. A quick reply to a question, a heads-up before an inspection, a professional tone in all exchanges — these aren't soft skills. They're yield protection.

The Retention Premium

There's a term in SaaS businesses: customer lifetime value. Landlords should think the same way. A tenant who stays five years is worth far more than one who stays one year, even if their monthly rent is identical.

Assume a tenant pays £1,200/month and you net £100/month after all costs. Over five years, that's £6,000. Over one year, it's £1,200 minus the turnover cost — so maybe £0 or even negative. The maths are brutal.

The best landlords treat long-term tenants like assets, not liabilities. They invest in the relationship because doing so compounds returns. They price rent fairly, not maximally. They don't nickel-and-dime over trivial issues.

What to Do Differently

If you're losing tenants more often than every three to four years, something is wrong. Start by asking why they left. If you use an agent, ask if they follow up with departing tenants. If you self-manage, send a short email asking for honest feedback.

Track your turnover rate and cost per changeover. Build it into your yield calculations. When you see how much each departure costs, you'll start treating retention as seriously as acquisition.

And above all, fix the small stuff. A slow boiler repair or a missed message might seem minor. But to the tenant, it's a signal. And when enough signals stack up, they start looking elsewhere.

The cheapest tenant is always the one you already have. Keeping them is the highest-yield investment you can make.