Renewal fee

  • Filter
  • Time
  • Show
Clear All
new posts

    Renewal fee


    I paid my agency a renewal fee on the tenants renewing the tenancy agreement (12 month duration). 2 months later 2 of the 4 tenants moved out.
    The agreement included a clause mentioning that as long as I gave approval (which I did) the tenants could move out as long as they found replacements (which they did). The agency charged each new tenant 120.

    My question is: Given the clauses from the agreement below, am I due a partial refund on the renewal fee paid?

    1.2.5 Where there is no agreed term for a renewal, the Renewal Commission fee is charged as a percentage of the total Rental value as if the Renewal would be for the same duration as the initial agreement. See also clause 1.2.6 in respect of rebates once the tenant vacates the property.

    1.2.6 If the tenant vacates the property prior to the end of the period for which Renewal commission has been paid in accordance with clauses
    1.2.5 above, the agent will refund the commission for the remaining period. The commission will be refunded within 14 days of the tenant vacating the property


    thank you

    Those clauses don't make a lot of sense - but there does seem to be an agreed term for the renewal, so 1.2.5 doesn't apply at all.

    Unless it's done very well (and it almost never is) swapping tenants during a joint tenancy is a mess.
    Either sign the tenants to individual agreements (which is more admin and means you pay the council tax) or a change of tenant needs a proper deed of assignment or one tenancy being ended and a new one begun in its entirety.

    You and the agent are cutting corners that can't really be cut.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


    Latest Activity