Ladybird Living – Your London Estate Agent

Ladybird Living
Apr 13 2023

Tenancy renewal fees: what are they and how to avoid them?

What is a Tenancy Renewal Fee? 

A tenancy renewal fee is when you are charged by the letting agent to renew a fixed term tenancy agreement. Previously, some letting agents were charging both the property owner and the tenants a tenancy renewal fee. However, letting agents in England can no longer charge tenants a tenancy renewal fee since the Tenant Fees Act 2019 which banned letting agents from doing so. It is also possible for property owners to avoid tenancy renewal fees if they decide to manage their own property and not use a letting agent.  


How can you avoid Tenancy Renewal fees?  


  1. Ask your letting agent whether they charge Tenancy Renewal Fees 

Some letting agents do not charge a tenancy renewal fee. Therefore, it is important you communicate with your letting agent and ask them about the fees they charge before agreeing to use their services. Ensure that they provide you with all the information in writing.  


2. Allow the tenancy to roll onto a Periodic Tenancy 

Usually, property owners will only be charged the tenancy renewal fee if the tenancy is “renewed” which means that a new contract should be signed. However, if the property owner does not sign a new contract, the tenancy will roll onto a periodic tenancy. Under a periodic tenancy agreement, most letting agents will not charge a tenancy renewal fee. this could be a way to avoid the fee, but it also largely depends on what is written in the contract you signed with the letting agent. 


3. Is the Tenancy Renewal Fee clearly stated in the contract? 

There should be a clause in the contract you sign with the letting agent which clearly states the renewal fee. If the contract fails to mention the tenancy renewal fee, then you may not be required to pay it.  


The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances. 


T +44 (0)203 488 1488 



Recent Posts

April 2023