Landlord Products / Services
High-street letting agents enforcing tenancy renewal fees is a diabolical tale as old as time.
Over the years, the service fee has attracted significant scrutiny for being little more than a revenue-generating tactic, because not only are the fees often excessive, but the service provided (if it can even be called that) is frequently mis-sold.
I’m actually curious to see whether agents in England will have the gall to continue attempting to charge renewal fees to landlords now that Assured Shorthold Tenancies (AST) have transitioned into Assured Periodic Tenancies (APT) following the introduction of the Renters’ Rights Act on 1st May 2026. And if so, how they’re going to justify it!
Anyway, let’s break down what this fee actually is and whether you still need to pay it…
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What Is a Tenancy Renewal Fee?
Good question! No, really!
It’s an “admin fee” charged by letting agents to facilitate the renewal of a tenancy between a landlord and their existing tenants when the fixed-term of a tenancy ends. In practice, this usually means paying the agent to re-issue the existing tenancy agreement with a few amended details – typically updated dates and sometimes a revised rent amount – for both parties to sign.
At one point, it was common for both the tenant and landlord to be charged a renewal fee, and this was one of the primary issues.
However, since the introduction of the Tenant Fees Act 2019, letting agents have been prohibited from charging tenants the fee – landlords remain fair game. An awesome and just result for tenants, nonetheless.
Service fees vary, but I’ve found they are usually a couple of hundred pounds per renewal (which is typically every year, as most fixed-term tenancies are set at 12 months).
What Is a Tenancy Renewal Fee?
Charging landlords for assisting with tenancy renewals in itself is not necessarily the issue, as there is clearly some administrative work involved, albeit a minimal amount. The bigger issue is the way the fee is often imposed.
Generally, anyone using a fully managed service is not subject to renewal fees, as this is usually included in the overall management package. If you are being charged on top of that, I’d be seriously pushing back. Unacceptable.
In most cases, however, renewal fees are pushed onto landlords who use a tenant-find only service. For example, you may pay a fixed fee (e.g. £1,000) for an agent to find a tenant and handle the initial paperwork, after which you manage the property yourself.
When the initial fixed term comes to an end, one of two things typically happens:
- Option 1: The agent contacts the landlord and offers to renew the tenancy with a new fixed term (e.g. another 12 months). This is actually fine, as long as the landlord has the option to decline.
- Option 2: Some agents are not so easily shaken off – they may claim the tenant is contractually tied to them (which they might be, depending on the arrangements). As a result, they insist that any renewal (e.g. new fixed terms or updated agreements) must go through them, triggering a renewal fee each time. In practical terms, if a landlord keeps a tenant for seven years and renews annually, they could end up paying a renewal fee six times. This effectively becomes a recurring revenue stream for the agent, particularly where they manage large portfolios of landlords in this position. Needless to say, this ends up being an expensive bear-trap!
How the Renters’ Rights Act Raises Questions About Whether Letting Agents Can Still Charge Renewal Fees
I am wondering whether the practice of charging landlords tenancy renewal fees in England has effectively died following the introduction of the Renters’ Rights Act, which replaced fixed-term Assured Shorthold Tenancies (AST) with Assured Periodic Tenancies (APT).
With all tenancies now periodic, agreements simply continue on a rolling basis and renew automatically each week or month (depending on how rent is paid – monthly for most tenants). In other words, there is no fixed term to renew.
Losing this cash-cow will be a significant hit for many letting agents, so it will be interesting to see whether they can still somehow justify imposing renewal fees. It would not surprise me in the least bit if they did.
But logically, I just can’t imagine how they could.
If anyone has insight into this, feel free to leave a comment.
How to Stop Paying Tenancy Renewal Fees
1) Allow the Tenancy to Roll Onto a Periodic Tenancy
If you are contractually obligated to pay renewal fees (this is how many landlords get caught out), and assuming you are not operating under the Renters’ Rights Act regime and are still working with fixed-term tenancies, allowing the tenancy to roll into a periodic tenancy after the fixed term ends may help avoid renewal fees – because there is no formal renewal process or administrative work involved.
So, if your agent attempts to charge a renewal fee, you can request that the tenancy simply rolls into a periodic tenancy instead. This may avoid the fee, depending on the terms of your agreement with the letting agent.
Back when I used to use high-street letting agents, I avoided renewal fees by doing this.
Assured shorthold tenancies automatically roll into a periodic tenancy once the fixed term expires. This means the same terms and conditions as per the tenancy agreement continue to apply, but the tenancy becomes a rolling agreement (usually monthly), rather than being locked into a fixed term such as 12 months.
This is, in my view, the preferred approach – not only to avoid renewal fees, but also because I have always been a strong advocate for letting assured shorthold tenancies roll into periodic tenancies. It is generally more flexible for both landlords and tenants.
Before the Renters’ Right Act, I always let my tenancies roll onto periodic tenancies. I’ve had tenants on periodic tenancies for several years.
2) Is the Tenancy Renewal Fee Clearly Stated in the Contract?
When using a letting agent, you are usually required to sign a contract with them. That contract should clearly set out all the fees you are subject to, including whether a renewal fee applies and the circumstances in which it is charged.
If the tenancy renewal fee is not clearly stated in the contract, there is a strong argument that you may not be liable to pay it. There has also been case law in this area – including a dispute involving Foxtons Lettings Agents – where the court found that fees which were not clearly and transparently set out in the contract were not enforceable. You can read more about that case here: High Court rules against Foxtons.
How To Avoid Tenancy Renewal Fees Altogether
Method 1: Use an Online Letting Agent to Find Tenants
It might be time to ditch high-street agents altogether, and join the online letting agent revolution.
Online letting agents (which are distinctly different from high-street agents) are significantly cheaper than high-street agents – it is night and day – and not just because they do not charge ongoing renewal fees. The average online agent charges a one-off fee of £50 for a tenant-find service!
They have been a game changer not just for me, but for tens of thousands of landlords (if not more). I’ve been using online agents for almost two decades, and there is no way I’m going back to a high-street agent, especially as a self-managing landlord – there is literally no point in doing it any other way.
Here’s my complete guide on online letting agent
Method 2: Ask Letting Agent Whether They Charge Tenancy Renewal Fees
Not all high-street letting agents are built the same, and the better ones recognise the vulgarity of charging tenancy renewal fees.
Before agreeing to use a letting agent, ask whether they charge renewal fees. If they do, find out how much and whether they are willing to waive the fee in future renewals. Depending on how competitive the market is, they may be prepared to remove or reduce the charge.
If you do agree anything, make sure you get it in writing.
Method 3: Allow the Tenancy to Roll Onto a Periodic Tenancy
I have already touched on this briefly, but it is also relevant in terms of prevention, not just stopping fees once they arise.
A tenancy renewal fee is usually only chargeable when a tenancy is formally “renewed”, meaning new contracts are issued and the tenant is tied into a new fixed term. However, if no new agreement is signed, the tenancy will typically become what is known as a Periodic Tenancy Agreement.
If this happens, most agents are unable (or not entitled) to charge a tenancy renewal fee. However, it is still worth clarifying with the agent whether they impose renewal fees when a fixed-term tenancy is allowed to become periodic, and, if so, asking how the fee is justified (i.e. what exactly you are paying for).
Landlord out xo
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
My contract with my property management is due to expire in 2015 and I have advised that I would not wish to renew this, however I like my Tennant's so requested to take over the management myself. They have advised that as long as the Tennant's live in the property regardless if the contract is in place they have the right to request a management fee until the Tennant's vacate is this correct.