Rental Lease - Renewing

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spidernyc
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Rental Lease - Renewing

Post by spidernyc » Thu, 07 Dec 2006 4:17 pm

Question about what's the norm in Singapore...

I am renewing a lease on a rental apartment.

1. I signed a 1 year lease last year. I would like to renew for another year.

2. At the time of signing last year, my housing agent required 1/2 month's rent. my landlord's agent required's 1/2 month's rent.

3. I on my own initiative requested directly to my landlord for renew of the lease. That is, signing of a new 1 year lease.

4. The Landlord's housing agent wants 1/2 months rent, again, for the new lease.

5. My previous housing agent wants 1/2 months rent, again, for the new lease. My previous housing agent did absolutely nothing for me in the renew.

6. If I end up paying my previous housing agent, then I will request that he handles the paperwork of the lease extension. But I really think I can handle this myself.

What is the convention in Singapore about renewing leases?

And do I really need my previous housing agent for the paperwork (ref. Item 6)?

Thanks in advance!

Singapore Property Search

 

oku
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Post by oku » Thu, 07 Dec 2006 11:15 pm

hmm... in my case, i rented out my place through an agent. the tenant has his own agent. my agent verbally give me the assurance that i didn't have to pay her any fee if i renew the lease directly with the tenant. i did exactly that - deal directly with the tenant.

However after the new lease started, my agent called to demand the agent's fee :shock: . well since she didn't call to offer to help to renew the lease on my behalf before the contact expired and also her assurance about no fee charged, i rejected her demand.

she insisted that she deserved the fees but will revert once she confirmed her stand with her company. instead of calling me, she called the tenant and demand the fee from him which he rejected. after that, we didn't hear from her again.

my tenant's agent, however, didn't call to demand any thing. that's my experience.

spidernyc
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Post by spidernyc » Sun, 10 Dec 2006 11:43 am

Do you know if your tenant paid any fees (either to your agent, or his agent)?

Any other experiences out there?

Thanks!

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Rich D
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Post by Rich D » Sun, 10 Dec 2006 11:53 am

To be honest I think you were had 1st time round and your agent is coming back for a second bite. In my years renting I have never, as the tenant, paid any agents' fees and I believe these are the responsibility of the landlord. Should you have an agent yourself then he/she will have to negotiate with their colleague on the landlord's side to share. In addition, no fee has ever been paid by me to the landlord except for 1 or 2 months refundable deposit. You may however have to pay the stamp duty for chopping the rental agreement.

Having rented for 7 years I bought a place and now that I am being posted overseas I am seeing the same situation in reverse i.e. it is me who has to pay the agent's fees as the owner of the place I want to rent.

Incidentally, another hint. Do not give back the keys until you have the returned deposit cheque in your possession. My first owner tried to tell me it was "normal practice" to post the cheque a few days later but this could leave the door open for them to make deductions to which you have not agreed. When it becomes time to move on, remind the agent to bring the cheque when you do the moving out inspection so that matters can be settled there and then.
Everyone is entitled to my opinion

oku
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Post by oku » Sun, 10 Dec 2006 6:59 pm

my tenent paid his agent only for that 1 time when the lease was signed (rent was abt S$1000). for my case, when i rented a unit 2 years ago (rent was about S$3000), i didn't pay any fees to my agent. i believe there is a cut-off (can't remember how much) whereby the tenant has to pay his agent if the rent is low.

:D cheers

AnnaTh
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Post by AnnaTh » Sun, 10 Dec 2006 9:46 pm

Our agent said that if the rent's over $3000 (or maybe $2500? Can't remember) they don't charge the tenant anything.

Charlatan
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Post by Charlatan » Mon, 11 Dec 2006 1:35 pm

If the rent is $2500 and over, the tenant doesn't have to pay any fees. Anything below and the fee is split 50/50 with the owner.

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Post by Grim Reaper » Mon, 11 Dec 2006 1:44 pm

Maybe the owners of this site, Pal or Joop, could shed a light here, since they are to be property agents.

All the above posted, with all due respect, are assumptions and not true in some cases.
Time will come....

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ksl
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Post by ksl » Mon, 11 Dec 2006 9:39 pm

Problems with agents complaints to CASE 2003: 447 to 469 in 2004 and 672 in 2005. The New Paper dated 9th December 2006 also states, that CASE does not take on disputes for tenents. However tenants are encouraged to take the dispute to the small claims tribunal and the Community Mediation Centre.

This year 20 foreigners sought help from CASE 16 had lodged complaint on rental issues. all except one were tenants. Agents that are not on the central IEA's registration scheme, should be avoided. www.iea.org.sg

It appears tenants have limited protection, I feel blackmailed into paying the new rental fee of 25% or move.

Luckily I have a letter stating they wanted to increase the rent by half of what they are now demanding, and because it is a new contract, I have already told them I will not move, and that we will see it in the small claims court for arbitration.

We will except a reasonable rent increase, but not exploitation and blackmail. I feel if one does't stand up to these greedy tactics, then no tenant will be safe, ever.

Obviously they now want us out, because, they can up the rental, but why should we disturb the whole family harmony, to please greedy landords & agents.

Of course it is principle from my point of view, for those on low incomes, they should have some form of protection, against Landlords & Agents.

metta
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hi

Post by metta » Tue, 12 Dec 2006 1:16 am

I think about the renewal issue, there might be a clause in the letter of intent
on commissions about renewal if i am not wrong, i guess :-)

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