Renting a Condo Apt -- Are Realtor Agents Neccessary?

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b3n84
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Renting a Condo Apt -- Are Realtor Agents Neccessary?

Post by b3n84 » Fri, 14 Aug 2009 12:14 am

Coming from NYC, I'm used to contacting the building landlords directly and working through their leasing office to negotiate an apartment. I'm unsure as to whether or not this system exists in Singapore, and if I am looking to rent at the Icon, the Sail, etc... if I still have to go through a broker.

Do the large condo buildings work exclusively with certain realtors?

Additionally, does the broker system in Singapore require the renter to pay a broker's fee? If so, what are the usual rates? (% of annual rent?)

Thanks for your help!

Singapore Property Search

 

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Post by teck21 » Fri, 14 Aug 2009 11:14 am

'Coming from NYC, I'm used to contacting the building landlords directly and working through their leasing office to negotiate an apartment. I'm unsure as to whether or not this system exists in Singapore, and if I am looking to rent at the Icon, the Sail, etc... if I still have to go through a broker. '

Generally not the practice here. property owners with properties for lease usually engage their own real estate agent. Some work with many.

The renter does need to pay a fee if the monthly rental is below SGD2,500, otherwise the whole fee is borne by the landlord.

If you are looking to rent the Sail or the Icon, you wouldn't eed to worry about having to pay any fee to the agents, although many will probably try rip you off, some by lying outright that you need to pay them a fee.

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Saint
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Post by Saint » Fri, 14 Aug 2009 11:32 am

teck21 wrote:
Generally not the practice here. property owners with properties for lease usually engage their own real estate agent. Some work with many.

The renter does need to pay a fee if the monthly rental is below SGD2,500, otherwise the whole fee is borne by the landlord.

If you are looking to rent the Sail or the Icon, you wouldn't eed to worry about having to pay any fee to the agents, although many will probably try rip you off, some by lying outright that you need to pay them a fee.
Not the most accurate advise you've given there as you've missed out one major point.

If an agent shows you more than 1 property you've actually exclusively engaged the agent and therefore liable to pay the agent a commission.

That's why when I was looking for somewhere to rent I bluntly told the agent that I'm not engaging you exclusively, you are only going to show me the one property which I've requested to view and that the agent is acting for the Landlord who is liable to pay any commission due.

Stick to this and you ensure you wont have to pay any commission for properties greater than $2.5k a month. I would also use this method even if the rental was less than $2.5k.

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Post by cbavasi » Fri, 14 Aug 2009 6:30 pm

b3n84 - if you are interested in those two buildings you can call the company directly/concierge and ask for agents of empty units - the landlords agent could probably swing you a better deal since they won't have to split a commission with another agent (yours).

Personally I liked going through an agent - she was able to draw up all the paperwork, negotiate a good deal and in the past has been a great help when we've had issues with the unit.

Coming from New York you need to be aware in Singapore they usually ask for 3 months rent (1st month + 2 month security) and you are also responsible for the stamp duty (I'm not sure the amount based on rent - maybe someone else can help).

There is also a step I'd never experienced in NYC - first you submit an LOI (letter of intent) along with a check (usually equivalent to 1 month rent) to secure the unit (though I've had it happen 2x where the apt fell through even after this stage)... during this holding period the TA (tenancy agreement/lease) is drawn up and all parties sign - this could take anywhere from a day to a week. At this time you submit another 2 months rent (1st month plus balance of the deposit) and the stamp duty check.

You won't have to pay the agent like in NYC if the rent is over $2500.

We were at the Sail this weekend for a party - the views are AMAZING and seemed to be a lot of young professionals.

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Post by pm1901 » Sat, 15 Aug 2009 2:12 am

Just a small correction...if you take a flat for rent for a year you would have to pay 1 month rent as deposit and one month as deposit.
If the lease is for 2 years then you need to pay 2 months deposit and 1 month rental in advance.

Cheers.

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Post by movingtospore » Tue, 18 Aug 2009 7:18 am

Can I ask what stamp duty is?

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Post by jpatokal » Tue, 18 Aug 2009 10:54 am

movingtospore wrote:Can I ask what stamp duty is?
Basically a form of tax, done to certify the final version of major agreements (mostly property).

http://www.iras.gov.sg/irasHome/page01.aspx?id=724
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Post by aargon » Sat, 10 Oct 2009 9:00 pm

Saint wrote:
Not the most accurate advise you've given there as you've missed out one major point.

If an agent shows you more than 1 property you've actually exclusively engaged the agent and therefore liable to pay the agent a commission.

.
Saint, I`m assuming you mean a commission IF you chose an apartment shown to you by that agent correct? Also how can you be liable unless there is a signed contract between you and the agent?

My company has assigned me an agent which I will use, but in addition I plan to do some searching my self through other agents.. with the end result of not paying any commission to the agent (I budgeting about 4-5k for a place anyway).

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