How much broker commission to pay when renting a place?

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Mindex
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How much broker commission to pay when renting a place?

Post by Mindex » Sat, 19 Dec 2009 10:46 pm

Hi All,

I have been told by all and sundry that when renting a place in Singapore, for rental above $2500, one doesn't need to pay the brokers commission, as it will be paid for the landlord. It's only if the amount is $2500 or less that one need to pay the broker commission (0.5 of the monthly rent for 1 year & 1 months rent for 2 years).

After finding a decent location, when I checked the commission, I was informed that the above mentioned rule wasn't strictly applicable - in fact the $2500 slab has been changed to $3000.

For $3000 and below, I will be required to pay the broker commission to my agent and similarly the other agent will recover the same amount from the landlord as well. It's only in the case of above $3000 that I wont be required to pay (with the agents claiming the rent from the landlord and then splitting it up between themselves).

I'm a bit confused on this. Can someone clarify the official rule and if the $3000 is the "new" market standard?

Thanks in advance

Singapore Property Search

 

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Post by macaroonie » Tue, 22 Dec 2009 6:54 am

I am a bit confused too, i was recently told that anything above $5000 per month we don't have to pay our agent commission and the landlord will pay both agents. Everyone has heard a different rule... is there some sort of agency or body where we can find out what the real laws should be?

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Post by Saint » Tue, 22 Dec 2009 7:32 am

macaroonie wrote:I am a bit confused too, i was recently told that anything above $5000 per month we don't have to pay our agent commission and the landlord will pay both agents. Everyone has heard a different rule... is there some sort of agency or body where we can find out what the real laws should be?
I refuse to pay any agents fees, just confirm up front that the agent is not acting on your behalf but solely for the landlord and you don't have to pay any fees!

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Post by pm1901 » Wed, 23 Dec 2009 10:36 am

The limit is 2,500......the agents are going to up with any number....ask them to show where this has changed to 3,000 or 5,000 for that matter.............they probably will not have an answer...

Cheers...

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Post by gonzales » Mon, 28 Dec 2009 2:15 pm

I pay zero as a tenant, the fee should be borne by the landlord.

don't let them tell you otherwise.

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Rental Agent Fees

Post by Gryn » Tue, 26 Jan 2010 7:12 am

I've been told two days ago, that I am responsible for the fees to my agent. My agent told me the the old requirement for the landlord, on a rental above 2500, to pay for the agents is no longer in force. Is this true? I was also shown an HDB but was told by a friend the majority are not rentable to a foreigner here on an EP.
Any checklists that anyone might have available (beyond the tenant's list I've already copied down) would be appreciated.

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Re: Rental Agent Fees

Post by jpatokal » Tue, 26 Jan 2010 10:58 am

Gryn wrote:I've been told two days ago, that I am responsible for the fees to my agent. My agent told me the the old requirement for the landlord, on a rental above 2500, to pay for the agents is no longer in force. Is this true?
It's the standard, but it doesn't have the force of law. Check with the landlord how much they're paying the agent: if they're paying a full month's rent, then you don't need to pay a cent. (And if the agent refuses to put you in touch with the landlord, then you can guess the answer...)
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Post by Gryn » Tue, 26 Jan 2010 11:25 am

Thank you for the reply. I will ask to be put in touch with the owner and see what happens. I'd also like to ask them some other things (like possiblity of furniture) or is this something that only the agents are allowed to do? My knowledge of Singapore procedures is limited but rapidly improving due to this site.

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Post by observer » Tue, 26 Jan 2010 11:28 pm

Not 100% correct. Regardless of how much money the landlord is paying his agent, his agent will not want to reveal the landlord simply because the agent is afraid that the landlord will cut the agent out of the deal as soon as he is in touch with you. Neither you nor the landlord will have to pay the agent anything.

Regarding the original topic, it varies greatly among agents. Many will even provide documentation about "new" guidelines, etc. Do not believe them. As of today, there is no official rule about this. Before working with any agent, ask about their commission policy.

For me, my agent did not charge me any commission and will not charge for anything above SGD2800 for my friends and colleagues. And this is including being an excellent agent through my tenure, arranging everything from Movers to bill registrations to contractors to anything else.

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Post by macaroonie » Fri, 29 Jan 2010 9:56 am

Just to confirm there is no law about agent's commissions? am i reading this right? Or is there some government law that outlines how much commission an agent should receive?

There are so many different ads that say different things. I saw one that says agent (advertising agent) to share tenant's commission... is this legal? Another agent tells that she is representing landlord so gets paid by landlord and i pay my own agent... i'm very confused

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Post by sundaymorningstaple » Fri, 29 Jan 2010 10:33 am

The commission, if any, should be negotiated or understood before using any agents services. It should also be in writing and ensure you get all particulars of the agent before you give them any money/cheques for deposits.
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Post by Saint » Fri, 29 Jan 2010 4:34 pm

sundaymorningstaple wrote:The commission, if any, should be negotiated or understood before using any agents services. It should also be in writing and ensure you get all particulars of the agent before you give them any money/cheques for deposits.
I alway make the agent understand that I will not be paying them any commission. Also that they are providing a service to the LL but not me.

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Post by m.stewart » Sat, 30 Jan 2010 1:16 pm

I don't think there is any "rule" on this, how much you need to pay depends on your negotiation skill.

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Post by EADG » Sat, 30 Jan 2010 3:02 pm

While I admire the cut of your jib on this, I'm wondering how many agents refused to work with you because of this.
Saint wrote: I alway make the agent understand that I will not be paying them any commission. Also that they are providing a service to the LL but not me.
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Post by observer » Sat, 30 Jan 2010 10:29 pm

Not as many as you imagine. I do not pay commission either. And even through calling agents from website ads, many do not take commission from the tenant above x amount rent.

None of my colleagues and friends pay commission either, also as a support for this practice. If the agent insists on us as tenants paying him, then we politely say no thank you and move on. The units being advertised are mostly shared amongst the agents, just work with the ones who do not take a tenant's commission.

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