Property Rental

[mmm 0]

Hi,

Our tenant is renewing the lease with us. They have been with us for 2 years.

Under this arrangement, we are obliged to use back the agents and pay them the commission.

Supposing our tenant want to continue to renew with us after 4th year? Do we still need to pay the agents commission??? This does sound unfair given that they did nothing. What is the correct practise in this? We want to incorporate this now.

[vowsh 1]

Hi,

Our tenant is renewing the lease with us. They have been with us for 2 years.

Under this arrangement, we are obliged to use back the agents and pay them the commission.

Supposing our tenant want to continue to renew with us after 4th year? Do we still need to pay the agents commission??? This does sound unfair given that they did nothing. What is the correct practise in this? We want to incorporate this now.

You no need to pay agent any comm for renewal. They did nothing to deserve. U work out with the tenant coz agent will not know.

Save the agent comm.

[mmm 0]

You no need to pay agent any comm for renewal. They did nothing to deserve. U work out with the tenant coz agent will not know.

Save the agent comm.

But problem is that we had to sign some commission agreement with agent previously. So we are bound legally to use them. I am thinking if we can choose not to sign it this time round.

[leechaorui 2]

But problem is that we had to sign some commission agreement with agent previously. So we are bound legally to use them. I am thinking if we can choose not to sign it this time round.

Yup, in the agreement, you are required to use the agent again if you decide to continue with the same tenant. Cheers!

[Warrior88 0]

Ethically, you should still engage your agent for renewal.

What is the meaning of "They deserve nothing" for not doing anything.

Same like insurance, we pay premium even though we did not use them.

You never know when the agent will help you in terms of dispute.

It is just my thought

[blue_skies 3]

Ethically, you should still engage your agent for renewal.

What is the meaning of "They deserve nothing" for not doing anything.

Same like insurance, we pay premium even though we did not use them.

You never know when the agent will help you in terms of dispute.

It is just my thought

Agree. It's an ethical thing.

If you think that the agent is not doing anything, you can always ask the agent to help arrange for renewal of the tenancy - I assume you'll need to draw up a new contract and also help you with the e-stamping (otherwise you'll need to make a trip down to IRAS yourself which is a hassle).

[bepgof 20]

Hi,

Our tenant is renewing the lease with us. They have been with us for 2 years.

Under this arrangement, we are obliged to use back the agents and pay them the commission.

Supposing our tenant want to continue to renew with us after 4th year? Do we still need to pay the agents commission??? This does sound unfair given that they did nothing. What is the correct practise in this? We want to incorporate this now.

My simple thought. The understanding & trust between the 2 parties has been around for 2 years, may be can do away those formality, take them as if relatives, or.....

Edited August 4, 2010 by bepgof

[matrix0405 0]

U don really need to agent in this case if u wish to deal direct. But there will be some paper work and running to do. But if you want to be totally hands off, then get the agent to help. And ask for reduced commission, since there is less to do and no need to spend money on advert.

[crash022 0]

well you can do anything you wish. It is always better to check the legal part of things before giving advise.

From the legal part of things, yes you are required to pay the commission if your tenant renew (read your tenancy contract).

The document is stamp duty so its a legal document. There is a saying, do whatever you like don't get caught.

[mmm 0]

well you can do anything you wish. It is always better to check the legal part of things before giving advise.

From the legal part of things, yes you are required to pay the commission if your tenant renew (read your tenancy contract).

The document is stamp duty so its a legal document. There is a saying, do whatever you like don't get caught.

Thanks to all.

We need to get agent due to earlier commission agreement signed. It is legal binding.

However, this time round, we cancelled the commission payable upon renewal clause on the commission agreement. So should the tenant decide to renew next time round, it is no longer binding.

[bepgof 20]

Thanks to all.

We need to get agent due to earlier commission agreement signed. It is legal binding.

However, this time round, we cancelled the commission payable upon renewal clause on the commission agreement. So should the tenant decide to renew next time round, it is no longer binding.

Swee ! Gentleman!

Edited August 11, 2010 by bepgof