Lease renewal fee?

Hi everyone,

Our real estate agent would like to charge us close to $250 for a 'lease renewal fee'. We have never in our lives had to pay this fee. Should we question it and how to phrase it? Or just pay? Or refuse? Lease has already been signed. Is it an unreasonable charge?

Comments

  • +9

    I don’t remember paying this fee ever. Have rented apartments in the past for 3 years and never paid any such stupid fee..

  • +4

    The paperwork cost is built into their 10%. Your agent is having a laugh, or maybe the agent tried to convince the landlord to raise rent more but they refused, so they want to get more value out of you. Agents will pull things like this all the time, the last place I rented said water was included for a flat $70 per quarter fee, but they still sent us the water bill. Each time we'd call them they would claim it was an error, but I think they were just hoping we'd pay it.

  • +1

    Are you the landlord or the tenant?

    • +5

      If landlord: find another agent.

      If tenant: contact Fair Trading/tenancy advocate.

    • Tenant

      • +9

        Yeah unreasonable IMO. REA is probably charging the landlord as well.

      • +3

        Sound like double dipping from your REA.

      • Wow I never knew tenants have had to pay such lease renewal fee too ?
        from past I have heard that tenants cannot be removed from property easily (even at end of lease). Unless they are given like a SPECIAL NOTICE (which is like landlord moving in to house, or hugely renovating house, or like sold house etc.)

        I can only imagine what this agency had charged landlord for lease renewal? (at max it should be like 1 week's rent anything more is a big big reason to say good bye to them.)

        Also in your situation, see if you had been made aware of such $250 charge upon renewal of lease. If you didn't read papers properly before signing them then that's a you problem sorry.

  • +7

    Scam

  • +11

    Lease has already been signed

    So they are trying to charge you AFTER it's been signed? Tell them to piss off.

    • +1

      That is correct AFTER!

  • +3

    If it never formed part of your renewal or you were advised it was a term of the lease being renewed then I don't think they'd have a leg to stand on trying to charge you for it retrospectively.

    Might pay to check if it was in fact written into the lease that you signed

    • No, it wasn't specified in the lease or email of the lease. Only sent us an invoice after the lease was signed by all parties.

      • +2

        You shouldn't be liable to have to pay it then. I know my current place tried to sneak in a few extra conditions when they sent us our renewal, we opted not to sign it with the new inclusions and have been month to month for nearly 18 months now without any issues. Definitely haven't ever had to pay a lease renewal fee ever in the last 10-15 years. (QLD/ACT)

        Which state if you don't mind me asking, just in case this is now gradually rolling out so is something others also need to be aware of for their future circumstances if it is written in to the renewal documentation or advised prior to being offered a renewal

  • +3

    Never heard of such a charge

  • +3

    Rented for 10 years, no such fee.

  • +1

    Ask them where you can post the cheque to. No problem RA, it's in the mail.

  • +2

    Even if a lease renewal fee was something an REA could charge, it should be charged to the landlord.

    • +2

      usually is, REA is being scummy and trying to double dip

      • +1

        Odd behaviour for an REA

  • +3

    Is it possible that it was mistakenly sent to you instead of the owner?

    • It was addressed to our names but perhaps it was an error

  • What is in the T&C's of your contract?

    • It was not in the lease or any previous correspondence

  • +3

    another story of REA doing dodgy stuff. They play the landlord and tenant, while they do nothing. report them.

  • +1

    Send the RE an email asking if they meant to send this to the landlord.

    You only get charged fees if you’re breaking your lease as a tenant.

    Being from VIC your rules are even stronger than elsewhere like NSW and I would pay a renewal fee.

    My usual line is ‘why should I pay you, so I can pay you?’

  • +1

    Send them an invoice for something trivial.

  • +1

    Reach out to Tenants Victoria they are super helpful. May even give you a template cease and desist letter

  • +3

    They have obviously confused you with the landlord. That should work out well if they start sending you the rent too.
    I am increasingly of the opinion that whether landlord or tenant, agents are a rip off, and some of the lowest forms of life. Always sneaking in charges. Or outrageous repair bills. And there is no repellent to keep them away either.

  • +1

    No, you don't need to pay this or any other fee.

    Just say what is this random fee I'm being charged here, is it a mistake? I'm not paying it.

  • +1

    Send the real estate an invoice for exactly the same….a renewal fee that you charge!

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