Rental Issue

[aunty 0]

Frenz rent a unit for 2 yrs and due to business reason, she need to terminate the contract early. As per the contact stated, she need to stay at least 12 month, and need to give 3 months notice if she want to terminate the contract. She has done all as per the contract, suddenly agent inform her that she need to pay owner back the commission for 9 months (24 month – 12 months of stay – 3 months of advanced notice) as

1. the agreement for the rental is 2 yrs.

2. Owner has given the agent 2 yrs of commission.

Accordingly to the agent, my frenz is the one who wants to terminate the contract first, so she has to pay. Can someone advise me if this is the correct procedure.

Thanks.

[yoongf 11]

Check tenancy agreement. There is no such thing as "industry practice" as claimed by many agents.

Tenancy Agreement strictly follows contract law. If not mentioned, there is no obligation. but there is goodwill to consider.

[blue_skies 3]

Not too sure how it is for rental of commercial ppty, but for residential ppty, there is something known as a diplomatic clause which protects the tenant from paying any penalty if he is unable to fulfill his whole tenancy. Normally the diplomatic clause is for reasons like retrenchment, repatriation etc (especially applicable for foreigners).

Normally the tenant has to fulfill at least 12 months of the 24 month tenancy. And if for whatever reason the tenant cannot even fulfill 12 mths of the tenancy, they are supposed to pay the outstanding no. of mths.

You would need to really read every clause in the Tenancy Agreement to see if this is covered.

[dean 5]

Can owner of flat rent out a room if he/she is not staying in that flat?

Need to prepare any rental agreement contract document?

Does utility bill include in rental agreement?

Any good rental agent recommended?

[charemme 0]

Frenz rent a unit for 2 yrs and due to business reason, she need to terminate the contract early. As per the contact stated, she need to stay at least 12 month, and need to give 3 months notice if she want to terminate the contract. She has done all as per the contract, suddenly agent inform her that she need to pay owner back the commission for 9 months (24 month – 12 months of stay – 3 months of advanced notice) as

1. the agreement for the rental is 2 yrs.

2. Owner has given the agent 2 yrs of commission.

Accordingly to the agent, my frenz is the one who wants to terminate the contract first, so she has to pay. Can someone advise me if this is the correct procedure.

Thanks.

Now we are talking about agent's commission right? there is no such thing as paying back the agent comm ..

When your friend rent a unit, the agent collected comm from both party (if not co-broke), so your friend already pay her due share of agent fee.

If she have fulfilled the min, occupancy period as per the agreement than its good enuff. Unless in the agreement there is such a clause stating that she need to bear addition cost thn its a different story.

Eg. I rent my room to a tenant for 1 yr lease, min to occupy for 6 mths if not forfeit 1 month deposit. 1 month advance notice for termination.

Tenant pay her agent the comm, while i paid mine for my own share.

On the 7th mth, tenant want to terminate, so i look for another agent and pay agent his comm again.

Fair n share, what ever i have earn from the rental income covers the agent comm.

Dun tell me the owner is so stingy they are unwilling to pay again the agent comm??

[charemme 0]

Can owner of flat rent out a room if he/she is not staying in that flat?

Need to prepare any rental agreement contract document?

Does utility bill include in rental agreement?

Any good rental agent recommended?

Utility inclusive in room rental but not for whole unit rental

[D^Quixote 0]

Can owner of flat rent out a room if he/she is not staying in that flat?

Need to prepare any rental agreement contract document?

Does utility bill include in rental agreement?

Any good rental agent recommended?

Yes, he/she can, but you'll have to seek approval (which means paying, of course) from HDB before you can rent out the whole unit. It used to be that some owners would just lock one room, but I don't think you can do that anymore haha. That's mostly cos the new law requires you to report to the HDB when you're subletting.

Yes, you do. Well, technically, you don't really have to but it's better for you, in case of any conflicts in the future. If you'd rather not get an agent to do it (I mean, if you already found a tenant yourself then pay agent for what??), i think you'll be able to find some model tenancy agreement here. AND - because of the new law - you'll probably have to pay stamp duties. Well, i think it's better to do that anyway just in case things somehow get ugly. A lot of regulations la now

As charemme said, utilities are included for rooms but not for whole units.