Sydney Lease Renewal Fees- Update

Sydney Lease Renewal Fees - Market Fee Update

Rent Roll Agency Fee Data (inc GST)- collected across 219 agents in 2024

How much? What percentage of agents charged?

1.1 weeks rent 5%

0.55 weeks rent. 26.9%

0.275 weeks rent. 1.4%

$200 to $299. 1.4%

$100 to $199. 4.6%

$30 to $99. 27.4%

No charge. 32.9%

One agent expressed their lease renewal fee as a percentage of 1.1% (against annual rent)

Common Lease Renewal Fee Mistakes in NSW

Just because NSW legislation provides restriction in the recovering of landlord costs (compared with other states) should a tenant break lease, sufficient reimbursement is still in place to warrant a lease renewal.

Also with legislation not allowing the enforcement of a fixed-term lease renewal, this does not mean that you are unable to highly encourage a tenant with the benefits of re-signing a fixed term, particularly in light of the protection they receive if the owner wishes to move back in, or sell the property.

Further, depending on the type of landlord insurance in place, benefits for tenants defaulting on a fixed-term lease are more (if not far more) than if a tenant defaulted on a non-fixed-term lease, from a policy claim point of view.

Thinking of Getting Better Fees?

Book into my diary for a chat on how to get better fees on GetBetterFees.com (direct link to my diary)