My agent is trying to charge me for 'marketing' and 'reference checks' even though the tenant stayed on from the previous year. Can I challenge these extra fees, or do I just have to stomach it?

Quick Answer

Landlords can challenge agent fees for 'marketing' and 'reference checks' on a tenancy renewal, as these services are usually unnecessary. The Tenant Fees Act 2019 primarily restricts fees to tenants, not those charged to landlords by agents.

## Permitted Fees for UK Letting Agents From 1 May 2026, with the full implementation of the Renters' Rights Act 2025, the landscape for letting agent fees continues to be governed by the Tenant Fees Act 2019 in England. This legislation primarily targets charges made to tenants, but indirectly influences what agents can charge landlords for services that were previously recouped from tenants. For instance, agents cannot charge tenants for renewal fees, checkout fees, or inventory costs. Permitted payments to tenants are largely limited to rent, tenancy deposit (capped at 5 weeks' rent for annual rent under £50,000), a holding deposit (capped at one week's rent), default fees for late payment of rent or lost keys, and fees for contract variations or early termination where requested by the tenant. The Act specifies that if a tenant continues to rent the property under a statutory periodic tenancy after the initial fixed term, the agent cannot levy new marketing or reference check fees from the tenant for this continuation. The Act states that an agent can only recover fees from a tenant if they are 'permitted payments', and marketing and reference checks for an existing tenant remaining in situ are not on that list. ## Unjustified Agent Charges and How to Challenge Them If your agent is attempting to charge you, the landlord, for 'marketing' and 'reference checks' when the tenant is simply continuing their tenancy, this is likely an unwarranted charge. Such charges typically arise from the agent’s standard service agreement which might include tenant-finding services. However, if the tenant is already in place and continuing their occupancy, no new tenant-finding activity has occurred. The agent cannot pass on costs to the tenant for a renewal, so they might attempt to charge the landlord instead. For example, an agent might charge a landlord £150 for a 'renewal fee' or £75 for 're-referencing' when no actual work has been conducted. Your primary recourse is to review your agency agreement meticulously. Look for clauses detailing fees for tenancy renewals, periodic tenancy conversions, or administrative charges for existing tenants. If the agreement is ambiguous or does not explicitly state these fees for an ongoing tenancy without a new fixed term, you have grounds to challenge it. ## Investor Rule of Thumb Always scrutinise agent charges against the service provided and current legislation; if no new tenant is found, charges for marketing or new referencing are generally unjustifiable. ## What This Means For You As a landlord, understanding your rights and the limitations on agent fees is vital to protect your investment returns. Agents operating outside of permitted payment regulations can erode your profit margins unnecessarily. Most landlords don't lose money because they make bad property choices, they lose money because they don't understand the small print or regulations. If you want to know how to effectively challenge an agent and ensure your agreements are watertight, this is exactly what we analyse inside Property Legacy Education.

Steven's Take

I've seen agents try to sneak in all sorts of charges over the years, especially around tenancy renewals. The Tenant Fees Act 2019 was a real game-changer for tenants, but it also means landlords need to be more vigilant. If a tenant is already in the property, there's no marketing to be done, and frankly, doing a full reference check again is often redundant unless there’s a material change in circumstances. Always read your agency contract closely and don't be afraid to question anything that seems off. If the agent can't point to a specific, agreed-upon service in your contract that warrants the fee for an existing tenant, then you shouldn't be paying it.

What You Can Do Next

Review your agency agreement: Locate the clauses regarding fees for tenancy renewals, periodic tenancies, and administrative charges. Check if these charges are explicitly outlined for an existing tenant continuing their stay.
Quote the Tenant Fees Act 2019: Inform your agent that charges for marketing and reference checks for an existing tenant are not 'permitted payments' under the Act (gov.uk/government/collections/tenant-fees-act).
Request an itemised breakdown: Ask your agent for a detailed breakdown of the work performed for the 'marketing' and 'reference check' charges, especially if no new tenant search was undertaken.
Contact your agent's redress scheme: If the agent refuses to remove the charges, escalate your complaint to their professional redress scheme (e.g., The Property Ombudsman or Property Redress Scheme). Their details should be on the agent's website.

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