What’s the difference between Lease Renewal and Letting Fees?
Property managers are often asked by landlords what is the difference between the letting fee and a lease renewal fee.
A letting fee is charged when an agent sources a new tenant for a vacant property. The letting fee is charged by the agent by conducting private inspections and/or conducting open for inspections to find a suitable tenant, performing rental checks on all applications received, drawing up legal documents, collecting bond and lodging with RTBA plus completing a condition report and photos for the ingoing tenancy.
A lease renewal fee is charged by an agent for negotiating another lease term with an existing tenant as instructed by the landlord, completing the documents for the next lease term as agreed by both parties and ensuring the return of the fully signed leases. Note that a landlord or tenant cannot force the other party into another lease term. If another lease term is not agreed by both parties then the Lease then turns into a periodic lease once the termination date on the tenancy agreement has been reached.