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If the Turnover Expenses Are Higher After a Longer-Term Tenancy, What Is the Benefit of Renewing a Great Tenant for Multiple Years?

But even with those higher eventual costs, renewing a great tenant for multiple years is almost always the most profitable long-term choice.

Audience: rental property owners who are concerned about higher turnover costs after long-term tenancy and want to understand why multi-year renewals remain the most financially beneficial strategy.

It's true: turnover after five or more years is usually more expensive. Paint, flooring, blinds, caulk, and appliances all age out around the same time, so the make-ready cost can feel steep.

Here's why long-term tenants remain the best investment despite this reality.

 

Frequently Asked Questions

If turnover after a long tenancy is expensive, shouldn't I avoid long tenancies? No, long-term tenants save thousands in vacancy and turnover costs over time.

Do long-term tenants cause more damage? Not necessarily, most costs are normal aging, not tenant-caused damage.

Should I still raise rent during renewals? Yes, consistent, moderate increases help maintain market alignment.

Why Long-Term Tenants Are Still the Best Investment

Even if turnover is more expensive after many years, the financial benefits of tenant stability far outweigh the eventual costs.

1. Long-Term Tenants Dramatically Reduce Turnover Costs Over Time

Turnover is the most expensive part of property ownership.

Typical turnover costs include:

  • Vacancy time (lost rent)
  • Cleaning
  • Painting
  • Flooring replacement
  • Marketing
  • Repairs
  • Multiple vendor visits

A tenant who renews for 5-7+ years skips all those annual or bi-annual costs.

Example:

  • Two turnovers in 6 years might cost $4,000-$6,000
  • One turnover after 6 years might cost $2,000-$3,000
  • The long-term tenant wins financially every time

2. Vacancy Loss Is More Expensive Than Turnover Repairs

Even one month of vacancy can cost $1,200-$2,500 (or more depending on market). This is often more expensive than many turnover repairs.

Renewing a great tenant avoids vacancy entirely.

3. Long-Term Tenants Tend to Treat Homes Better

Good tenants who renew:

  • Report issues early
  • Maintain the home better
  • Keep utilities consistent
  • Reduce excessive wear from frequent moves
  • Are less likely to cause intentional damage

This extends the life of flooring, appliances, and fixtures.

4. Predictable Cash Flow Is More Valuable Than Occasional Savings

One of the top advantages of long-term tenancy is:

  • Stability
  • Predictability
  • Reduced administrative work
  • Lower stress and oversight
  • More accurate budgeting

Consistent rent far outweighs the occasional high turnover cost.

 

5. Renewals Allow Gradual, Controlled Rent Increases

Moderate yearly increases:

  • Keep rent near market rate
  • Avoid shocking renewals after years of no adjustments
  • Improve long-term property value
  • Help owners keep pace with inflation

A renewing tenant helps maintain pricing stability.

 

6. Long-Term Tenants Reduce Wear in Some Categories

Certain types of wear are higher with high turnover:

  • Frequent moving scratches floors and walls
  • High move-in/move-out traffic wears carpet faster
  • More cleaning sessions accelerate paint aging
  • Doors, locks, blinds, and appliances get more frequent use during transitions

One tenant staying put often results in less damage than many short-term occupants.

7. Turnover Is Logistically Demanding

Avoiding turnover also avoids:

  • Vendor scheduling
  • Repairs
  • Multiple inspections
  • Marketing delays
  • Showing coordination
  • Utility transfers
  • Administrative time

Renewing removes a massive time burden.

How Much Does a Long-Term Renewal Actually Save?

A typical renewal can save:

  • $1,500-$4,000+ in turnover expenses
  • 2-6 weeks of vacancy loss
  • 20-60 hours of administrative or owner oversight
  • Risk of an inferior replacement tenant

Even with increased turnover cost at the end, the net savings over multiple years is substantial.

Why Owners Sometimes Misinterpret Long-Term Turnover Costs

Turnover after 5+ years often includes:

  • Full repaint
  • Flooring replacement
  • Appliance replacement
  • Blind replacement
  • Full deep clean
  • Safety updates

This feels expensive, but:

  • Those costs would have happened anyway—just spread across several shorter tenancies
  • You avoided multiple turnovers, which would have been more expensive cumulatively

Long-term tenants consolidate expenses but significantly reduce the total number of turnovers.

A Realistic Example

Scenario A: Short-term tenants

  • 3 turnovers in 6 years
  • Average cost per turnover: $2,000
  • Total: $6,000 + vacancy + stress

Scenario B: One long-term tenant

  • 1 turnover after 6 years
  • Cost: $3,000
  • Savings: $3,000+ plus lower vacancy and lower risk

Long-term stability overwhelmingly wins.

Tips to Encourage Long-Term Tenancy

  • Keep rent increases reasonable
  • Address maintenance quickly
  • Offer renewal options early
  • Maintain positive communication
  • Upgrade cost-effective items (LVP, durable paint)
  • Avoid excessive restrictions

Good tenants stay longer when they feel valued.

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