what's the incentive of a tennant agent?

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
Post Reply
User avatar
aargon
Chatter
Chatter
Posts: 259
Joined: Sun, 20 Sep 2009 6:10 pm

what's the incentive of a tennant agent?

Post by aargon » Mon, 07 Nov 2011 5:35 pm

If the amount of commission is tied to the price, then even if i am a tennants agent, isnt it to my benefit to collude with the LL's agent to get the highest price available? whats the incentive for the agent to aim for a low price?
Everybody was KungFu Fighting.....

Singapore Property Search

 

User avatar
nakatago
Moderator
Moderator
Posts: 8348
Joined: Tue, 01 Sep 2009 11:23 pm
Location: Sister Margaret’s School for Wayward Children

Post by nakatago » Mon, 07 Nov 2011 5:47 pm

why do you ask questions the answers to which you already know?
"A quokka is what would happen if there was an anime about kangaroos."

User avatar
aargon
Chatter
Chatter
Posts: 259
Joined: Sun, 20 Sep 2009 6:10 pm

Post by aargon » Mon, 07 Nov 2011 6:29 pm

and the answer is?
Everybody was KungFu Fighting.....

beppi
Manager
Manager
Posts: 1752
Joined: Thu, 07 Sep 2006 11:15 am
Location: Ahlongistan (O$P$)

Post by beppi » Mon, 07 Nov 2011 6:55 pm

The answer ist:
If you as a prospective tenant need to engage an agent, you should negotiate a commission that is NOT tied to the rent (or negatively tied, i.e. the cheaper the place the agent finds for you, the more he/she gets).
Of course the agent will not like it and give you all kinds of excusese why it's not possible (e.g. that it's against the rules, which is bullshit as there are no rules governing agents' commissions - they were abolished many years ago!).

pochari
Newbie
Newbie
Posts: 14
Joined: Tue, 26 Apr 2011 9:07 pm

Post by pochari » Thu, 10 Nov 2011 5:46 pm

Hi Aargon,

I was thinking the same thing as this weekend I'm off to see some places who's rents are "negotiable". To avoid having the agent tell me that "in this particular case, it's not possible to negotiate", I was thinking of offering him a commission that is tied to the original asking price (this agent asks for half the rent as commission).

So if he gets me a discount on the rent, he still gets the full commission. That way he might fight for my discount. You end up paying him a small extra amount once (like $100-200) and getting a discount on the rent.

We'll see if it works this weekend :)

User avatar
ecureilx
Immortal
Immortal
Posts: 9811
Joined: Fri, 20 Aug 2010 5:18 pm

Post by ecureilx » Thu, 10 Nov 2011 10:38 pm

pochari wrote:Hi Aargon,

I was thinking the same thing as this weekend I'm off to see some places who's rents are "negotiable". To avoid having the agent tell me that "in this particular case, it's not possible to negotiate", I was thinking of offering him a commission that is tied to the original asking price (this agent asks for half the rent as commission).

So if he gets me a discount on the rent, he still gets the full commission. That way he might fight for my discount. You end up paying him a small extra amount once (like $100-200) and getting a discount on the rent.

We'll see if it works this weekend :)
you are kidding right ? most agents consider rental deals as small money, and they do it to keep themselves busy .. as a 2% of a 1 million property is enough for them to last long .. and longer ..

If your agent drives a beemer or Merc, don't bother with your 200-300$ strategy .. most likely he will be in cahoots with the landlord (and many an agent manages large portfolios .. ) and could not bother to fight for you .. says my 2 cents ...

beppi
Manager
Manager
Posts: 1752
Joined: Thu, 07 Sep 2006 11:15 am
Location: Ahlongistan (O$P$)

Post by beppi » Thu, 10 Nov 2011 11:12 pm

This is not true:
Property agent (similar to insurance salesman and financial adviser) in Singapore is a typical stop-gap job for those who have failed all else, have no clue what to do with their life or fall for "get rich quick" stories like the one you tell about 2% of a million dollar condo sale.
Sadly, most are too clueless to ever make such a sale. Thus they need to sqeeze every last penny out of small rental deals to survive.

User avatar
ecureilx
Immortal
Immortal
Posts: 9811
Joined: Fri, 20 Aug 2010 5:18 pm

Post by ecureilx » Fri, 11 Nov 2011 12:42 am

beppi wrote:
Sadly, most are too clueless to ever make such a sale. Thus they need to sqeeze every last penny out of small rental deals to survive.
Which means they will take your 'incentive' and still not do the best for you as they want to get the most out of the landlord's part of the commission as well :D :D

I rest my case ... :D :D

beppi
Manager
Manager
Posts: 1752
Joined: Thu, 07 Sep 2006 11:15 am
Location: Ahlongistan (O$P$)

Post by beppi » Fri, 11 Nov 2011 3:17 am

ecureilx wrote: Which means they will take your 'incentive' and still not do the best for you as they want to get the most out of the landlord's part of the commission as well :D :D
Which is, of course, illegal (charging both tenant AND landlord) - but that doesn't mean it's not done, in a profession as shady as this.

x9200
Moderator
Moderator
Posts: 9873
Joined: Mon, 07 Sep 2009 4:06 pm
Location: Singapore

Post by x9200 » Fri, 11 Nov 2011 8:00 am

Paying a fixed commission is surely one logical thing this industry needs but IMO part of the problem is the tenant's attitude. Judging only from the complains posted on this boards the tenants clearly accept bad service quality offered by the agents. The agent do not want to negotiate the rental? Tell him, fine, lets move on to another property where the price is negotiable. The agent unhappy with this? Find another agent. Do not accept any BS and be sure he/she knows that this her/him who is here for you not the other way around.
We've been using agents for a decade already and never paid any commission nor have a single problem with negotiating the rent. And ... tada, something considered by many a serious mistake - the agents also know our budget up in front. It only helps if you are in control. If the agent is reasonable his incentive is also time as he has more deals to close. Then he knows either he gets the rent (and other things) to the level we accept or there is no deal and all have to start over again.

User avatar
ecureilx
Immortal
Immortal
Posts: 9811
Joined: Fri, 20 Aug 2010 5:18 pm

Post by ecureilx » Fri, 11 Nov 2011 10:13 am

x9200 wrote:- the agents also know our budget up in front.
Well, while in my long time here, I had to deal with two agents - rest were all directly dealt and insisted on the fixed 1,000 fee .. for which

And all others, when enquired, have the habit of 'stretching' the budget .. :D :D none



Funny the way things have turned out with the current agent from a big property company, who has decided to abondon ship and I am contemplating notifying his employer and CEA about his loyalty .. to the landlord until he is virtually insisting that we repair the aircon - and along comes a quote of 900 $ plus, while a new aircon 3 split unit is just over 1200 ..

When we pressed that he need to settle the terms proper with the landlord's agent, he said that so far he has been doing all out of goodwill, And, mind you, this is the only problem we have for the past 2 years .. oh, he did quote us THIS FORUM, for the normal procedures for expats renting in Singapore, despite our reminding that all of us have been here for a looooong while .. and are not fresh, and not the "CONDO' "EXPAT" types ..

x9200
Moderator
Moderator
Posts: 9873
Joined: Mon, 07 Sep 2009 4:06 pm
Location: Singapore

Post by x9200 » Fri, 11 Nov 2011 10:34 am

ecureilx wrote:
x9200 wrote:- the agents also know our budget up in front.
And all others, when enquired, have the habit of 'stretching' the budget .. :D :D none

Never happened to me and I don't think it's a sheer luck. You just need to make it very clear. We can agree on higher budget if there is something really special offered (it happened). Our agent knows we do our homework so although he is still far from being perfect he balances only within the agreed limits.

When we pressed that he need to settle the terms proper with the landlord's agent, he said that so far he has been doing all out of goodwill, And, mind you, this is the only problem we have for the past 2 years .. oh, he did quote us THIS FORUM, for the normal procedures for expats renting in Singapore, despite our reminding that all of us have been here for a looooong while .. and are not fresh, and not the "CONDO' "EXPAT" types ..

Why do you need this agent to negotiate such things especially that you are more than adequately literate in this matter so you would be better doing it by yourself? "Because I paid him" does not sound like a good reason.

User avatar
ecureilx
Immortal
Immortal
Posts: 9811
Joined: Fri, 20 Aug 2010 5:18 pm

Post by ecureilx » Fri, 11 Nov 2011 10:55 am

x9200 wrote: Why do you need this agent to negotiate such things especially that you are more than adequately literate in this matter so you would be better doing it by yourself? "Because I paid him" does not sound like a good reason.
Chalk it up to too much of faith in the agent, especially when he is representing us AND the landlord had his OWN agent as well ?? :D

And partly I was also enjoying his floundering .. and stumbling, and finally admitting that he has problem comprehending the agreement (No, I am not kidding, I have that in email .. )

He went from deciphering the agreement to "You pay nothing, all covered by landlord", to "sorry, I didn't understand the agreement, it is you Pay for everything, including possible replacement of the aircon", for which I asked if I can take the aircon with me, when I leave, and leave the broken unit in place (no, the joke didn't fly .. ) and on to the current stance of "oh, I misread, you just pay the first 150$ only, balance will be Landlord" and now "oh, I am frustrated dealing with you .. and so far, my service is out of Good will only"

I was more than tempted to ask him what made him charge us the agent fee, other than to get some documents stamped .. :D

Oh the wonder of having some free time in hand ..

x9200
Moderator
Moderator
Posts: 9873
Joined: Mon, 07 Sep 2009 4:06 pm
Location: Singapore

Post by x9200 » Fri, 11 Nov 2011 11:13 am

"My service is out of Good will only" or similar is a standard, cross-island response of all the *beep* who don't do the job the way they should. Funny they do not realize it makes the whole thing only worse for them but I guess this limitation comes from the same source as the reason for their incompetence and lack of any ethical spine.
I hope you responded, no you do this because this is your obligation agreed in the legal agreement (be it verbal or written) and at this point the only way to save you *beep*.

User avatar
ecureilx
Immortal
Immortal
Posts: 9811
Joined: Fri, 20 Aug 2010 5:18 pm

Post by ecureilx » Fri, 11 Nov 2011 11:45 am

x9200 wrote:"My service is out of Good will only" or similar is a standard, cross-island response of all the *beep* who don't do the job the way they should. Funny they do not realize it makes the whole thing only worse for them but I guess this limitation comes from the same source as the reason for their incompetence and lack of any ethical spine.
I call that "lack of moral fiber" but .. well, the essence is the same .. :D
I hope you responded, no you do this because this is your obligation agreed in the legal agreement (be it verbal or written) and at this point the only way to save you *beep*.
Done .. And there is absolute silence ..




wasnt' CEA making english exams compulsory for property agents and a conservative estimate said that more than half may not pass ? And a lot of lobbying to stop the certification .. well, well, here is the prime example of why they MUST pass the exam, when the contracts are all in English, the agent claims he has problem comprehending the terms .. I hope they cancel the license of such bad apples ..

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Property Talk, Housing & Rental”

Who is online

Users browsing this forum: No registered users and 2 guests