Failed AST renewal letting fees?

Personally I try to avoid annual renewal fees as they are a bit of a rip-off if the tenant is already in situ and no work required by the agent. Check the T&C's of your agent agreement, as some clauses can be renegotiated / struck out. There needn't be any extra fee payable for notices re. rent increases, although a charge is normal if issuing brand new contracts. If however your existing AST is moving onto a periodic basis I can't see the need for any new fees to be payable. You could check with other agents what terms they would offer and use that to negotiate with your current agent.

Did the agent highlight to you from the outset other than their standard T&Cs that you are liable for renewal fees ?
If not then you are not liable as per the High Court ruling OFT v Foxtons.
However if they have an ongoing involvement in the tenancy for instance Collecting the rent or holding the deposit then perhaps they can.
Even on a period tenancy.
I have personally have never paid one or intend to.

Further to my previous advice.

In the future when you first instruct an agent tell them you will be holding the deposit yourself (in one of the protection schemes), Collecting the rent, Managing the property & no renewal fees.

This will eliminate any hassle again.

What was the renewal fee? Was it just to cover the cost of obtaining updated references/ affordability checks? If so I fail to see how you can complain, other than you should have been kept informed. As no new AST was issued, there should be no charge for this. What you have to decide is, are you happy to accept no increase in rent with the current tenants? The fact that the agent conducted updated ref checks 8s admirable, most don't bother and you eventually end up with tenants in arrears because they can't afford the new rent during the fixed term.

Paul,
It's not clear from what you have said originally who carried out the referencing for the proposed increases in rent & new AST. If you when back to the agent to do this then they will want some money for their time and the costs of the referencing. What cost was agreed beforehand or was a new contract signed? they should have told/ explwined the costs upfront before providing any service to you. You need to check the details or start a formal complaint with them. If you're still not happy with the result complaint to their redress scheme.

If there has been no increase in rent how can the charges be be based on the higher figure which is not in effect.
If your contract says that they are entitled to charge for l renewal and letting fee then this should be on the ongoing rent not the proposed one.
I would also argue that the property has not been re-let so how can they charge a letting fee.

The tenant being on a periodic tenancy is to your benefit, so I think that aspect is a good outcome. It may be reasonable for the agent to charge you for the tenancy renewal that failed as they put in the work for this. However, I can't see how this can be charged at the higher rent level unless they've now served the tenant with a s13, (form 4) notice to increase the rent during a periodic tenancy. If they haven't served this notice, then ask them why not.

Reply to the comment left by David Smith at 15/07/2024 - 12:13
The T&C / Confirmation of Marketing states "Renewal commission 18 % incl. VAT* of the annual rent ( 15 % + VAT)" so the renewal must be "18% of the annual rent" not of some rent not achieved.
Given that the intended rent was not achieved, I question if that was a Renewal, or just a failed attempt. The fixed fee for that attempt was also charged and paid, however is much less so acceptable £234.

Reply to the comment left by PAUL BARTLETT at 17/07/2024 - 18:51
T&Cs Usually state once a tenancy goes Periodic renewal fees are still liable. So if the new rent wasn’t achieved that is irrelevant unless what I mentioned previously is not met.
The £234 still shouldn’t have been paid

Reply to the comment left by Rob Crawford at 15/07/2024 - 14:02"What was the renewal fee? Was it just to cover the cost of obtaining updated references/ affordability checks?"
.
From the T&Cs:
'The Renewal fee £234 is for:
• Production of the tenancy agreement and deed of guarantee if required
• Completing referencing and obtaining agreement to proceed
• Arranging quotes and organising any works required before move-in
• Ensuring all paperwork is complete and in place for the move in date
• Arranging for the appropriate deposit documentation to be signed
• Taking payment of move in monies
• Registering the deposit with the TDS and issuing a certificate of registration'
So this work was done, and I accept payment was due.
However the 'Renewal commission (18% incl. VAT of the annual rent) is for:
• Property marketing as per the marketing cycle already discussed including all portal and newspaper advertising
• Accompanied viewings
• Negotiating the tenancy renewal
• Negotiation of offers by skilled professionals to achieve the highest possible rent
• Rent collection & accounting
• Regular arrears checks
• Chasing rent arrears
• Regular accounts statements'
So the annual rent remained unchanged while the 18% was charged on the notional higher rent that failed to complete referencing i.e. was not realistic for the tenants to pay.
The commission wasn't accurate as to the actual rent achieved. Thus the negotiation services described were not rendered in any meaningful way.
I don't agree that I should pay the higher rent 18% fee, and dispute that the letting service negotiation was provided.