4) Do not take fresh set of reference.
taking a reference is irrelevant as the tenants are already in the property. and the reference are historic.
5) Do not prepare a fresh contract.
Its not necessary an appendix of a A4 page is prepared giving the new rent, the address of the property and the extension period.
If the landlord is not happy with the terms, why agree to them.
The landlord do not have a choice. As at the beginning of the contract are the terms that are agreed ( no mention is made of renewals ) This is a practise with all agents that is my point of cartel.
Its not a question for fear or dictating terms. You can do this with commission as the competition allows for it. But the renewal is where the cartel comes in. As I said that OFT is looking at the renewal fee.