Re-letting

Re-letting is the act of granting a new residential tenancy over a rental property once the previous one has lawfully ended and the landlord has recovered vacant possession. It is closely related to re-renting, which covers the full compliance and documentation cycle for starting a new tenancy, but re-letting has a specific meaning in the context of a tenant who leaves before they were expected to. It is the process of finding a replacement, and the basis on which costs incurred during the void period can be recovered from the outgoing tenant.

When a tenant leaves at the natural end of a tenancy

Under the Renters' Rights Act 2025, all private assured tenancies in England are periodic with no fixed end date. A tenancy ends when either party gives valid notice, two months' written notice from the tenant, or when a possession order is obtained and enforced. Once the outgoing tenant has vacated and keys have been returned, the landlord has vacant possession and may market the property and agree new terms with an incoming tenant. At this stage, re-letting is a straightforward operational matter: re-instating or refreshing compliance documentation (gas, EICR, EPC, alarms), preparing a new check-in inventory, running reference checks, taking and protecting a new deposit, and providing the new tenant with the written statement of key terms required under the Renters' Rights Act. For the full compliance checklist at this stage see the August definition of re-renting.

When a tenant leaves early and re-letting costs arise

The more legally significant use of "re-letting" arises when a tenant requests to leave before they are entitled to, abandoning the property or seeking the landlord's agreement to an early exit, and the landlord incurs costs in finding a replacement. Under the Tenant Fees Act 2019, early termination charges are a permitted payment that landlords or agents can pass to a tenant who requests early exit. The key statutory requirements are:

The charge must not exceed actual, evidenced financial loss. A landlord cannot charge a flat fee or a percentage of rent as a penalty. The recoverable amount is limited to the actual loss suffered as a direct consequence of the early exit, for example, advertising costs, referencing fees for the replacement tenant, and any rent lost during the void between the outgoing tenant leaving and the new tenant starting to pay. Each item of loss must be supported by invoices or receipts. An adjudicator or deposit scheme will require this documentary evidence if the charge is disputed.

The double-charging prohibition. A landlord cannot charge the outgoing tenant for any period during which a new tenant is paying rent. Once a new tenancy is in place and rent is flowing from the replacement tenant, the outgoing tenant's liability for the same period is extinguished. This prevents a landlord from collecting rent twice for the same property over the same period.

The charge is capped at the rent that would have been payable to the end of the original notice period, taking into account any rent received from the replacement tenant. If the replacement tenant is found quickly and there is no void, the landlord's loss may be minimal, even zero, regardless of advertising costs, which remain recoverable if evidenced.

Commission to a letting agent for re-letting can form part of the claim where the landlord uses an agent and the agent's fee is genuinely incurred as a result of the early exit. The agent's invoice is the required evidence.

The void period

The period between the outgoing tenant vacating and the new tenant moving in, the void period, is when re-letting costs accumulate. During this period the landlord bears the council tax, utilities (where not separated from the tenancy), insurance, and mortgage payments with no offsetting rental income. The void is also the window in which compliance documents may need renewing (particularly gas safety certificates, which are annual) and property preparation work, including cleaning, redecoration, minor repairs, should be completed to present the property in the best condition for viewings.

August's document storage keeps advertising invoices, referencing receipts, and contractor costs in a single property file, making it straightforward to compile the evidence needed if a re-letting costs claim against the outgoing tenant is later disputed.

For practical guidance on reducing void periods and finding a reliable replacement tenant efficiently, see the August guide to how UK landlords can find reliable tenants.

Frequently asked questions

What are re-letting costs and when can a landlord charge them?

Re-letting costs are the actual, evidenced costs a landlord incurs when a tenant leaves early and the property needs to be re-marketed, advertising fees, referencing costs for the new tenant, and any rent lost during the void. They are a permitted payment under the Tenant Fees Act 2019, provided they do not exceed the landlord's actual financial loss and are supported by invoices or receipts. They cannot include a penalty payment, a percentage of rent, or any amount not directly caused by the early exit.

Can a landlord charge re-letting costs and rent at the same time?

No. Once a new tenant is paying rent, the outgoing tenant's liability for the same period ends. Charging both simultaneously is double recovery, which deposit scheme adjudicators and courts will not permit. The claim for rent from the outgoing tenant is limited to the period between their departure and the new tenancy starting.

What evidence does a landlord need to support a re-letting costs claim?

Invoices or receipts for each item of loss, advertising platform fees, referencing agency charges, agent commission if applicable. A deposit scheme adjudicator will require documentary evidence; a general cost breakdown without supporting invoices is not sufficient following the Tenant Fees Act 2019.

What happens if the tenant finds their own replacement?

If the outgoing tenant finds a replacement who is acceptable to the landlord and who takes on the tenancy, the landlord's re-letting costs may be reduced or eliminated, particularly advertising costs. The landlord may still incur referencing and tenancy preparation costs, which remain recoverable if evidenced. The tenant's involvement in finding a replacement does not automatically extinguish all re-letting costs but will typically reduce them substantially.