Renewal of lease

[impreza]

Hi, new to being a landlord so hope to get some advice here.
The 2 year lease on my property is ending soon and the tenant has expressed interest in renewing it.
It's a corporate lease and I've been liasing with their agent, no agent acting for me.
My question is do I have to pay commission to their agent?
Any other matters I should look out for when signing the new TA?
Just for reference, how much on average do you increase your rent?

Thanks.

[DC33_2008]

You may want to go through your current tenancy agreement first to see if it is a 2+1 based on prevailing market rental rate, etc. You can use the ura rental market data as a guide for your condo.

Hi, new to being a landlord so hope to get some advice here.
The 2 year lease on my property is ending soon and the tenant has expressed interest in renewing it.
It's a corporate lease and I've been liasing with their agent, no agent acting for me.
My question is do I have to pay commission to their agent?
Any other matters I should look out for when signing the new TA?
Just for reference, how much on average do you increase your rent?

Thanks.

[sh]

Hi, new to being a landlord so hope to get some advice here.
The 2 year lease on my property is ending soon and the tenant has expressed interest in renewing it.
It's a corporate lease and I've been liasing with their agent, no agent acting for me.
My question is do I have to pay commission to their agent?
Any other matters I should look out for when signing the new TA?
Just for reference, how much on average do you increase your rent?

Thanks.

Check the contract if there is a clause that says you have to pay the agent for lease renewal. If it's there, too bad... Just make sure that its not in the new contract. Agents always tries to slip this clause in. TAKE IT OUT...

If it's not there, tell the agent that you prefer to deal with the tenant directly, bypassing the agent. You can contact the tenant directly since you have their contact. Some companies insist their staff go through an agent.... too bad for you again...

You can give 2 rates, 1 lower offer without the agent, and another higher one with agent to cover your commission.

[proud owner]

Check the contract if there is a clause that says you have to pay the agent for lease renewal. If it's there, too bad... Just make sure that its not in the new contract. Agents always tries to slip this clause in. TAKE IT OUT...

If it's not there, tell the agent that you prefer to deal with the tenant directly, bypassing the agent. You can contact the tenant directly since you have their contact. Some companies insist their staff go through an agent.... too bad for you again...

You can give 2 rates, 1 lower offer without the agent, and another higher one with agent to cover your commission.

do you believe in free lunches ?


my house has been rented out for over 6 years ... and at each renewal .. I continue to pay comm to the agent ...

after all he does all the works for me ..even though I already know the tenant..

For HDB ...if you rent out..you need to register with HDB and pay $20/ for every 18th mth...

do you think you can tell HDB to FO cos you are not paying them $20 every time you renew the rent .. can you ?

why with govt you LL pay ...with agent who does all the work ..paper work, stamping, going thru defects, inventory etc ..and you want to rid them ?

this is something I cannot understand ...

afterall agent comms is tax deductible .. I rather pay to get the job done...although I know I am well capable of doing it ...

[hyenergix]

do you believe in free lunches ?


my house has been rented out for over 6 years ... and at each renewal .. I continue to pay comm to the agent ...

after all he does all the works for me ..even though I already know the tenant..

For HDB ...if you rent out..you need to register with HDB and pay $20/ for every 18th mth...

do you think you can tell HDB to FO cos you are not paying them $20 every time you renew the rent .. can you ?

why with govt you LL pay ...with agent who does all the work ..paper work, stamping, going thru defects, inventory etc ..and you want to rid them ?

this is something I cannot understand ...

afterall agent comms is tax deductible .. I rather pay to get the job done...although I know I am well capable of doing it ...

This is one dilemma I will face with my tenancy agreement renewal. My tenants GIRO the rental automatically at the end of each month. After my tenancy agreement was signed, I have not engaged my agent for any help so far (hopefully not during the tenancy). I'm not too sure whether to pay 1 month commission again for my tenant to re-sign the tenancy agreement.

[peterng8]

This is one dilemma I will face with my tenancy agreement renewal. My tenants GIRO the rental automatically at the end of each month. After my tenancy agreement was signed, I have not engaged my agent for any help so far (hopefully not during the tenancy). I'm not too sure whether to pay 1 month commission again for my tenant to re-sign the tenancy agreement.

1/4 for 1 yrs seems reasonable? new is different as they incur cost run adv and getting all docs signed,viewing etcc...so 1/2. Renewal cho bo sai reprint contract and changed date only...look see yr place kay kay inspect...1/4 more than enough...if u don't need to pay anything or pay 250 for contract signing for renewal..U re good!

[proud owner]

This is one dilemma I will face with my tenancy agreement renewal. My tenants GIRO the rental automatically at the end of each month. After my tenancy agreement was signed, I have not engaged my agent for any help so far (hopefully not during the tenancy). I'm not too sure whether to pay 1 month commission again for my tenant to re-sign the tenancy agreement.

if you want to stamp the new tenancy agreement yourself,
if you want the tenant to call you whenever they have issue with the house,
if you want to tenant to contact you to help find contractors to do minor repairs
if you want etc etc ...


then DONT PAY comm on renewal ..

I just feel that sometimes agents do have their usefulness and at least mine does all the work for me and does it swee swee ...

they will in future recommend really good tenants...

for those who burn the bridge ...cutting the agent off after 2 years ... don't think the agent would want to give you their good clients in future ...

and words spreads ..ahhahha ... just as you wont recommend lousy agents ...agents also wont recommend good tenants to you ...

[proud owner]

1/4 for 1 yrs seems reasonable? new is different as they incur cost run adv and getting all docs signed,viewing etcc...so 1/2. Renewal cho bo sai reprint contract and changed date only...look see yr place kay kay inspect...1/4 more than enough...if u don't need to pay anything or pay 250 for contract signing for renewal..U re good!

so whats your thought about having to pay HDB on every renewal ?

somemore you go online and do all the work yourself ... yet still have to pay HDB ...

can tell HDB that they deserve 1/4 fee ? or zero fee ?

at least the agent PRINT the documents .. when dealing with govt ,,you print it yourself hahha

[peterng8]

[quote=proud owner;451790]so whats your thought about having to pay HDB on every renewal ?

My thought is :

HDB is very good to give options to those landlords..

they have the choice to pay the present affordable official amount to get Approval themselves(with some paperwork) or they could pay a third party(agent) Another Amount ( which costs more) to get approval on behalf for them if they choose to...

[proud owner]

[QUOTE=peterng8;451813]

so whats your thought about having to pay HDB on every renewal ?

My thought is :

HDB is very good to give options to those landlords..

they have the choice to pay the present affordable official amount to get Approval themselves(with some paperwork) or they could pay a third party(agent) Another Amount ( which costs more) to get approval on behalf for them if they choose to...

you are missing my point ....


HDB charges landlord at every renewal ... landlord HAS to pay like it or not ..

it may just be $20 but HDB does nothing ...


while agents charge more ... they also do a lot more


Just becos its a govt body, it leaves the people no choice so people L L pay up ... when it comes to agents, can squeeze, just squeeze ...

that's the attitude ...which is sad ...despite they doing all the work

[Simi]

[QUOTE=proud owner;451815]

you are missing my point ....


HDB charges landlord at every renewal ... landlord HAS to pay like it or not ..

it may just be $20 but HDB does nothing ...


while agents charge more ... they also do a lot more


Just becos its a govt body, it leaves the people no choice so people L L pay up ... when it comes to agents, can squeeze, just squeeze ...

that's the attitude ...which is sad ...despite they doing all the work

Bro

my agent does it all for me

air con service, washing of curtain after tenancy ends, changing of washing machine water pipe, light bulbs, accompanying tenant to buy new TV consoles mattress for new tenant, new coat of a paint ...etc etc ...

[proud owner]

[QUOTE=Simi;451818]

Bro

my agent does it all for me

air con service, washing of curtain after tenancy ends, changing of washing machine water pipe, light bulbs, accompanying tenant to buy new TV consoles mattress for new tenant, new coat of a paint ...etc etc ...

exactly ... and yet there are many landlords who think that agent should not be paid on renewal ...


can u imagine ...

after 2 years ... tenant renews .. landlord do it himself without the agent cos he thinks agent doesn't deserve it ...

then tenant calls agent asking where to get this get that ... and since agent is not paid this time .. what should agent do ? tell tenant to fly kite ? or just ignore the call ?

I tell you ... agent will take the tenant to somewhere else on renewal

SIMI you have a good agent who does more than what agents are supposed to .. I hope you do pay him on renewal ... like I do

[Simi]

[QUOTE=proud owner;451822]

exactly ... and yet there are many landlords who think that agent should not be paid on renewal ...


can u imagine ...

after 2 years ... tenant renews .. landlord do it himself without the agent cos he thinks agent doesn't deserve it ...

then tenant calls agent asking where to get this get that ... and since agent is not paid this time .. what should agent do ? tell tenant to fly kite ? or just ignore the call ?

I tell you ... agent will take the tenant to somewhere else on renewal

SIMI you have a good agent who does more than what agents are supposed to .. I hope you do pay him on renewal ... like I do

Bro

a S$500 ang pow on top of the 1month comms for 2years renewal

[proud owner]

[QUOTE=Simi;451826]

Bro

a S$500 ang pow on top of the 1month comms for 2years renewal

ok I am not as generous ... I just pay 1 mth comm for 2 yr renewal ....

[newbie11]

[QUOTE=proud owner;451827]

ok I am not as generous ... I just pay 1 mth comm for 2 yr renewal ....

Actually all these work by agent is not in scope . Their comm is to only find u tenant.

[Simi]

[QUOTE=proud owner;451827]

ok I am not as generous ... I just pay 1 mth comm for 2 yr renewal ....

one of the main reason was that before the tenancy expired

she already found another tenant in waiting (previously)
the continuity of the lease was perfectly timed !!!

a very good agent

[hyenergix]

if you want to stamp the new tenancy agreement yourself,
if you want the tenant to call you whenever they have issue with the house,
if you want to tenant to contact you to help find contractors to do minor repairs
if you want etc etc ...


then DONT PAY comm on renewal ..

I just feel that sometimes agents do have their usefulness and at least mine does all the work for me and does it swee swee ...

they will in future recommend really good tenants...

for those who burn the bridge ...cutting the agent off after 2 years ... don't think the agent would want to give you their good clients in future ...

and words spreads ..ahhahha ... just as you wont recommend lousy agents ...agents also wont recommend good tenants to you ...

My dilemma is because after signing the tenancy agreement, I did most of the rest (like coordinating repairs) myself.

[Lav123]

This thread comes just in time for me. I was also wondering whether should I pay my agent renewal commission should he able to close my 1st tenancy.

Though already >2 months, but I can see that he is really trying very hard to get the tenant for me. I feel paiseh to exclude the renewal commission clause from the tenancy agreement because we are like friend now, trusting each other.

What happen if during the 2 yrs tenancy period, but within 6 months, the tenant breaks the agreement, should the agent still entitle to the full commission.

I understand that there is a GST charge for the commission, so if the rental is $2,500, I should pay $2,500 + 7% GST is it?

[Simi]

This thread comes just in time for me. I was also wondering whether should I pay my agent renewal commission should he able to close my 1st tenancy.

Though already >2 months, but I can see that he is really trying very hard to get the tenant for me. I feel paiseh to exclude the renewal commission clause from the tenancy agreement because we are like friend now, trusting each other.

What happen if during the 2 yrs tenancy period, but within 6 months, the tenant breaks the agreement, should the agent still entitle to the full commission.

I understand that there is a GST charge for the commission, so if the rental is $2,500, I should pay $2,500 + 7% GST is it?

Hi Lav

now is the time to get your agent to start working

prepare to service the electrical appliances like air con...
getting the tenant to clean up before vacating
change all light bulbs

If he could negotiate rental higher and so on...............

Do "A Check List" on things to do now

[Simi]

This thread comes just in time for me. I was also wondering whether should I pay my agent renewal commission should he able to close my 1st tenancy.

Though already >2 months, but I can see that he is really trying very hard to get the tenant for me. I feel paiseh to exclude the renewal commission clause from the tenancy agreement because we are like friend now, trusting each other.

What happen if during the 2 yrs tenancy period, but within 6 months, the tenant breaks the agreement, should the agent still entitle to the full commission.

I understand that there is a GST charge for the commission, so if the rental is $2,500, I should pay $2,500 + 7% GST is it?

The comms should excludes the 7% GST
7% cannot escape...pay to gov

all other fee borne by tenant like Tenancy agreement


after 6 month if tenant breaks tenancy
Agent has to pay back to you comms on pro rate basis

2500 / 24 x 18

[Lav123]

Hi Lav

now is the time to get your agent to start working

prepare to service the electrical appliances like air con...
getting the tenant to clean up before vacating
change all light bulbs

If he could negotiate rental higher and so on...............

Do "A Check List" on things to do now

Actually all have done already, is in a ready move in condition. Normally what are the things that I have to pay special attention to regarding the tenancy. If a local tenant wants to shift in immediately after he views the unit and will pay you 2 days later with 1 mth deposit + 2 mths rental, do you think this type of tenant is "fishy"?

[Simi]

Actually all have done already, is in a ready move in condition. Normally what are the things that I have to pay special attention to regarding the tenancy. If a local tenant wants to shift in immediately after he views the unit and will pay you 2 days later with 1 mth deposit + 2 mths rental, do you think this type of tenant is "fishy"?

that's why is good to have a good relationship with your agent

He will on your side on the look out

if your place is more than 10years old...look out for water pipe choke

can be quite nasty in the midst of the tenancy

Get agent to go through the Inventory List with tenant leaving

sit down and do a check list with your agent

[DC33_2008]

Do not give hp number to your tenant or establish too close relationship with them and everything should go through agent. It is better to stay a distance from tenant as it will be easier to raise rent in the next renewal. Agents will go all out to serve their landlords, especially those with a couple of investment units, these days given the stiff competition. I believe most of them deserve the commission.

[Simi]

Do not give hp number to your tenant or establish too close relationship with them and everything should go through agent. It is better to stay a distance from tenant as it will be easier to raise rent in the next renewal. Agents will go all out to serve their landlords, especially those with a couple of investment units, these days given the stiff competition. I believe most of them deserve the commission.

Hi DC33_2008

fully agreed

let the agent face the blast from the tenant if things goes wrong

we put on a silly face and collect the rent

we pay them comms to be the bad guy

[august]

Actually all have done already, is in a ready move in condition. Normally what are the things that I have to pay special attention to regarding the tenancy. If a local tenant wants to shift in immediately after he views the unit and will pay you 2 days later with 1 mth deposit + 2 mths rental, do you think this type of tenant is "fishy"?

yes, fishy. Never let tenant move in until the cheque has cleared.

[teddybear]

Wrong way lah.
You should state in Tenancy Agreement that this pro rate amount will be deducted from tenant's deposit - This is the only right way to treat a hard-working and good agent!
Why should the agent be penalized because tenant break tenancy agreement? If tenant knows and believes they are likely to stay for the whole tenancy period, they will not complain about such clause. If they know and they want to remove such clause so that they have no liability, then chances are they are likely to break tenancy early (they know that), such tenant better don't want.

The comms should excludes the 7% GST
7% cannot escape...pay to gov

all other fee borne by tenant like Tenancy agreement


after 6 month if tenant breaks tenancy
Agent has to pay back to you comms on pro rate basis

2500 / 24 x 18

[august]

after 6 month if tenant breaks tenancy
Agent has to pay back to you comms on pro rate basis

2500 / 24 x 18

i have not seen tenancy agreements where agent commission can be clawed back. The agency or agent will not cough up the pro rated difference. however can claw back from tenant deposit.

[Lav123]

The comms should excludes the 7% GST
7% cannot escape...pay to gov

all other fee borne by tenant like Tenancy agreement


after 6 month if tenant breaks tenancy
Agent has to pay back to you comms on pro rate basis

2500 / 24 x 18

Is it have to ask from him or he will refund me automatically, especially now become so close, so paiseh to ask from him if this happens.

[Lav123]

Wrong way lah.
You should state in Tenancy Agreement that this pro rate amount will be deducted from tenant's deposit - This is the only right way to treat a hard-working and good agent!
Why should the agent be penalized because tenant break tenancy agreement? If tenant knows and believes they are likely to stay for the whole tenancy period, they will not complain about such clause. If they know and they want to remove such clause so that they have no liability, then chances are they are likely to break tenancy early (they know that), such tenant better don't want.

Will the tenant deposit be forfeited if he breaks the tendency?

[Simi]

Wrong way lah.
You should state in Tenancy Agreement that this pro rate amount will be deducted from tenant's deposit - This is the only right way to treat a hard-working and good agent!
Why should the agent be penalized because tenant break tenancy agreement? If tenant knows and believes they are likely to stay for the whole tenancy period, they will not complain about such clause. If they know and they want to remove such clause so that they have no liability, then chances are they are likely to break tenancy early (they know that), such tenant better don't want.

Teddy Sir
I rather make this agreement with my agent than with tenant because I dont even know the tenant except for his/her name and his signature.
Every month before certain date if dont see rental money in my account I will call my agent to find out why. (So far so good)

Btw : easier to deal with your agent or with your tenant ?....you decide.