Renewal Fees Are Unfair

Renewal Fees are Unfair

At Humphrey and Brand we don’t charge renewal fees because they are highly unreasonable. Lisa Brand, Partner, explains why. 

What are Renewal Fees?

‘Renewal fees’ are the fees charged by agents when an existing tenant decides to renew or extend their tenancy agreement. Renewals are rather like investing in a well-fitting coat then paying fifty to one hundred per cent of the original price again next season in order to keep it – highly unfair wouldn’t you say?

Why do Agents Charge Renewal Fees?

The arguments in favour of renewal fees are shaky at best. Agents argue that 1) without them market forces would ensure the commission rate for ‘new lets’ would increase and 2) higher commission rates for new lets would disadvantage landlords with shorter tenancies and advantage those with longer tenancies. In this respect renewal fees are marketed as a ‘fair’ way of charging landlords. Really? 

In reality, agents charge renewal fees because they can. At Humphrey and Brand however, we pride ourselves on forming relationships based on trust; so not only are our ‘new let’ fees competitive but we don’t charge renewal fees because we act in landlords and tenants best interests at all times.

Negotiate Hard or Instruct Humphrey and Brand

Agents tend to bury renewal fees within terms and conditions so should you do decide to instruct an agent that charges for renewals; address the issue before instructing the agent. You have a right to negotiate over agents’ terms and conditions as well as the over the terms of your tenancy agreement. Some agents will reduce the fee, rather than lose you to a competitor, but as most have come to rely on this ‘free’ income none are likely to waive it entirely.

At Humphrey and Brand our business is designed with landlords in mind so, with no renewal fees to worry about, you can focus on what’s important - personal service, quality tenancies and maximum exposure for your property.

For more information, or to request an accurate valuation, call 020 8399 1888, email lettings@humphreybrand.co.uk or visit Humphrey and Brand at 24 Brighton Road, Surbiton.