In Singapore, there's no universal standard regarding commission for property agent renewals on rental agreements. Here's a breakdown of what to expect:
Renewal Commission Practices:
Commission for Lease Renewal is Common: It's quite common for property agents to charge a commission for lease renewals, even if the same tenants stay in the property.
Negotiable Commission: The commission amount for renewals is typically negotiated between the landlord and the agent. It might be a percentage of the monthly rent (often half a month's rent) or a flat fee.
No Commission for Renewal in Some Cases: Some landlords might have initial agreements with their agents that exclude commission on renewals.
Factors Affecting Commission:
Agent's Services During Renewal: If the agent actively helps with the renewal process (e.g., drafting documents, negotiating with tenants), they might be entitled to a commission.
Length of Initial Engagement: The length of the initial contract between the landlord and the agent might influence the commission for renewals.
Recommendations for Landlords:
Review Initial Agreement: Carefully review your initial agreement with the property agent to see if it mentions commission for lease renewals.
Negotiate Renewal Commission: If the agreement doesn't specify renewal commissions, negotiate a reasonable fee with the agent before they start any renewal-related services.
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