Agent's Fee and Rental fees

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sg_expat
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Agent's Fee and Rental fees

Post by sg_expat » Thu, 13 Jul 2006 1:57 am

I've already been renting a flat here in Tampines area for a year now. My contract will expire on August and my landlord has agreed not to have agents involved. I paid my agent half the rent last year. However, my housing agent is still bugging me and saying that I have to pay a commission to her for the renewal even if I'm not acquiring her services for the renewal. Her reason was that the she recommended the house to me. Her company (my agent's) called me up saying that I have to pay the commission as there is a law regarding that by the REal estate Assocation.

I can't seem to find this law that they are pertaining to on the web.

Is there really a law regarding paying the agent's fee even on the second year even if you're not going through the agent??? Personally I don't feel that this is fair.

Also would like to know how much are the rent prices within the Tampines area (2 bedroom +living room)?

Thanks.

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Post by ringo100 » Thu, 13 Jul 2006 11:26 pm

Agent fees paid by the tenant are the biggest con there is.

You should refuse to pay. See if they threaten to sue.

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Post by sg_expat » Fri, 14 Jul 2006 12:24 am

thanks for your reply.

Im not planning on paying at all... I just feel that they're ripping me off and just bluffing me by saying that it's a law...... but then I may be wrong..... :???:

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Agents Fees

Post by Patrick777 » Fri, 14 Jul 2006 11:25 pm

Sorry I'm new to all this but moving soon, you have to pay the agents fee?

Is that normal ?

How much is it?

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Post by sg_expat » Sat, 15 Jul 2006 12:49 am

They're asking me to pay half the month's rent (e.g. if rent is 850, I have to pay 425) and I really don't think that its fair.

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Post by ringo100 » Sat, 15 Jul 2006 1:22 pm

It isn't fair. The service is provided to the landlord and they should pay.

I think it is better to find houses without an agent.

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Post by EADG » Sun, 16 Jul 2006 1:04 pm

ringo100 wrote:Agent fees paid by the tenant are the biggest con there is.
I was told separately by two reputable (recommended by the company I worked for) agents that this is the case only after a certain monthly rent amount, are you saying that is not really the case?

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Fees

Post by Singapore Property » Sun, 16 Jul 2006 3:43 pm

EADG wrote:
ringo100 wrote:Agent fees paid by the tenant are the biggest con there is.
I was told separately by two reputable (recommended by the company I worked for) agents that this is the case only after a certain monthly rent amount, are you saying that is not really the case?
Yes, S$2,500 and below, guidelines by IEA (Institute of Estate Agents).
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Post by ringo100 » Sun, 16 Jul 2006 4:14 pm

It is something I have never experienced in any other country.

I am happy to pay someone if they provide me a service. For example if I employed someone to look at 50 different properties and negotiate a cheaper rental on my behalf I would be happy to pay a fee for the service.

All they do here is show you the properties already on their books.

It is interesting that it is only for cheaper properties that this applies. Surely, it is those people who can afford the more expensive properties that can afford the charge.

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Re: ...

Post by eeeee » Sun, 16 Jul 2006 7:48 pm

ringo100 wrote:It is something I have never experienced in any other country.

I am happy to pay someone if they provide me a service. For example if I employed someone to look at 50 different properties and negotiate a cheaper rental on my behalf I would be happy to pay a fee for the service.

All they do here is show you the properties already on their books.

It is interesting that it is only for cheaper properties that this applies. Surely, it is those people who can afford the more expensive properties that can afford the charge.
what if the agent literally shown you 50 properties and at the end of the day..you took up the apartment with some other agents...thats what happened to my colleagues, took agents for granted by asking them to show 30 properties and they signed up with someone else. [-X

there is no guarantee sale for the agent and they have to spend lots of time sheduling appointments! [-o<

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Post by ringo100 » Sun, 16 Jul 2006 10:42 pm

The agent is engaged by the landlord to find tennats for the property. That's why in all countries I know of, the landlord pays the agent's fee.

To see a sensible amount of properties here you need to go to about 10 agents and each one shows you about 2-3 places. That service is not worth the money.

Total con.

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Re: ...

Post by EADG » Sun, 16 Jul 2006 11:05 pm

eeeee wrote: what if the agent literally shown you 50 properties and at the end of the day..you took up the apartment with some other agents...thats what happened to my colleagues, took agents for granted by asking them to show 30 properties and they signed up with someone else.

there is no guarantee sale for the agent and they have to spend lots of time sheduling appointments!
fair question, are you from Singapore?

because the scenario you described is basically the case for just about anywhere else in the world, and usually referred to as 'capitalism'

I asked because when I first started looking when I got here I was told how all the agents have access to the same data so it's not the practice here to use multiple agents, as it is where I and this person moved from, it is a necessisity if you want to get anything done quickly.

I've found that the agents here have trouble understanding and accepting this. Strange in an otherwise capitalistic place like Singapore.

FYI against my better judgement I observed the system at first, until became obvious that my agent was not coming through on places right for me, and those that were we didn't end up getting closure. I had to open up to more agents - my executive residence time was running out and needed a place.
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Re: ...

Post by Singapore Property » Sun, 16 Jul 2006 11:47 pm

ringo100 wrote:The agent is engaged by the landlord to find tennats for the property. That's why in all countries I know of, the landlord pays the agent's fee.

To see a sensible amount of properties here you need to go to about 10 agents and each one shows you about 2-3 places. That service is not worth the money.

Total con.
There's no need to debate on this as since this is the guidelines set by the Institute of Estate Agents, agencies have the right to follow.

If there is a willing tenant and willing agent to meet the deal, fine. The tenant has his right to decide if he should pay for the services of the realtor and if not, the realtor also has the right to decide whether he would want to serve the tenant.

Both parties just have to be willing. :D
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Re: ...

Post by snowball » Mon, 17 Jul 2006 1:41 am

Singapore property wrote:There's no need to debate on this as since this is the guidelines set by the Institute of Estate Agents, agencies have the right to follow.

If there is a willing tenant and willing agent to meet the deal, fine. The tenant has his right to decide if he should pay for the services of the realtor and if not, the realtor also has the right to decide whether he would want to serve the tenant.

Both parties just have to be willing. :D
I see that it is a service with a smile, isn't it? I'm sorry to say that it is not all "willingness".

If a tenant is not willing to pay the commission, the agent delays the "time" and deals with other interested parties. The only thing IEA tells you is that they are sorry about it and that you can write in officially to lodge a complain against this particular agency you are using.

It is especially annoying when you really wanted the place. It is almost as if you are at their mercy. These agencies are just riding on these "so-called" guidelines.

As you had said, there is need for debate on this as these are the guidelines and are to be used as a GUIDE only.

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Post by hillview2006 » Wed, 26 Jul 2006 3:10 pm

Hi just wanna share my thought..

We've engaged 2 estate agent before( plus 1 recently become 3). For 1 yr lease, rental below S$2500 - landlord & tenant pay half mth rental for the agent fees and for 2 yrs lease - both party should pay 1 mth rental for the agent fees. Some time these agent do co-broking with another agent therefore they have to share the fee 50/50. On the renewal of the contract, we happily pay the agent the same fee coz on top of that the agent also negotiate for a better terms for us. So she/he deserve it.

Not all the agent are landlord's appointed. Once they recieved call from a potential tenant, they'll try to match you with what they have in their direct listing(appointed) If these listing did not match your requirement then they will do searching in their database. if luck on her/him side, she might bump with the landlord or otherwise she have to call other agent to co-broking with. So there you go.....when it come to co-broking terms the room for negotition maybe slim. But from our experiences, agency fees always negotiable & MUST be paid.

Yes, Singapore has different terms in their rental thingy to compare with others. Not all countries having the same Law/rule in Properties. But hey... singapore do have the best diplomatic clause i have seen in the region though...(correct me if i'm wrong)

When Our first move in singapore, we call lots of agent and end-up viewing the same property that the previous agent showed us. we also learn from the agents that all the agents shared the same database. That's why from then when we need an agent to service us we call 2 agent and select one out of them.

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