I see this thread moving towards high/low fees vs service, or expectation of service.
Rather then concentrating on the $ 25.00 being charged, it makes more sense to look at the overall charges and service you are receiving.
Brisbane 04 mentioned that the tenants approached the agent for a new lease, this leads me to think that the agent may have let this renewal slip, I wonder if anything else has been missed? Alternatively it may have been allowed to go to a periodic by both the agent & tenant, then the tenants circumstances changed and they wanted the security of a lease.
In regards to the administration amount raised by Meagf, I think this is carry over from the paper based statement days and many are loathed to drop this. We have dropped the charge if landlords want email based statements, in the case of paper based statement we have actually increased the charge as sending a basic envelope is now .70c and a full size envelope is $ 1.40