Re-contract For Subletting Flat

[hello88 2]

flat was sublet to tenants for one year through agent and had paid the commission to agent. One year contract due soon and tenants wished to continue staying. Can we diy or must go thru the same agent and let him earn comms again?

[keltong 4]

If you are confident of the whole procedure, than you can definitely DIY. You will have to take care of the contract (which you can probably sort of duplicate from the existing one) and also the application to sublet the flat. Else if you are not sure how and want to get an agent to do it, the commission should be 0.5 mths for renewal, no matter if you sublet 1 year or 2 years.

[GoalHome 1]

Re-look at the earlier signed contract. Usually the agents will have a clause stating that commission is due to them is contract is renewed. That of course, provided that the agents do check.

[hello88 2]

just checked thru the Tenancy Agreement. Looks like gotta let the agent earn comms again as there's this clause ....'In the event that hte Landlord should grant the Tenant an extension of the said term herein then the Landloard and the Tenant shall pay the agency another commission equivalent to one half (1/2) of the new monthly rental plus GST for every year of extension'.

**** it cos agent not doing much and I'm always the one helping my mum to go HDB online to update the subtenant records whenever there's any changes.

[GoalHome 1]

Yes that's the usual practice. Or you can insist on using your own set of tenancy agreement, and conveniently forget to include in that clause. For my last tenant, I did not use the agent's agreement as i find most of the clauses are not favorable to the landlord. I engaged a lawyer to draft out the agreement and insisted on a higher than normal deposit as my house was new and fully furnished.

[hello88 2]

Yes that's the usual practice. Or you can insist on using your own set of tenancy agreement, and conveniently forget to include in that clause. For my last tenant, I did not use the agent's agreement as i find most of the clauses are not favorable to the landlord. I engaged a lawyer to draft out the agreement and insisted on a higher than normal deposit as my house was new and fully furnished.

haiz...too late liao because we gotta abide to the 1st tenancy agreement signed last year. My parents dont mind to pay the agent half a month commission if the existing tenants want to continue staying once the existing contract expires. However, I'm thinking as to how to omit out that stupid clause in the next tenancy agreement that my parents going to sign.

[zirhk3355 1]

just checked thru the Tenancy Agreement. Looks like gotta let the agent earn comms again as there's this clause ....'In the event that hte Landlord should grant the Tenant an extension of the said term herein then the Landloard and the Tenant shall pay the agency another commission equivalent to one half (1/2) of the new monthly rental plus GST for every year of extension'.

**** it cos agent not doing much and I'm always the one helping my mum to go HDB online to update the subtenant records whenever there's any changes.

If that is the exact wordings from the contract, then its very simple to get around it...but dun say I say one...

Read the words again: "In the event that hte Landlord should grant the Tenant an extension of the said term herein..."

Hmmz...is it obvious now?? All you have to do is NOT to extend the contract!

The following must be done:

1. If the tenant has an option to renew (usually 1 yr), then ask the tenant to respond (in black and white) that s/he chooses not to renew (for whatever personal reasons, etc).

2. Redraft another tenancy agreement and DO NOT use the previous one as template. You might want to get a lawyer to do this.

3. Sign it with the tenant and go for your IRAS e-stamping.

Extension means no terms must be changed, ie an extension letter would be signed and ATTACHED to the existing tenancy agreement. Terminating the agreement and re-negotiating is NOT an extension.

The agency is only entitled to their renewal commission if the existing agreement is renewed, OR they are assisting you guys to negotiate the new agreement.

Sorry if I seemed like playing b*stard, but terminology is very important. Too bad for the agency that they did not phrase their clauses properly to protect themselves - its a dog-eat-dog world out there in business!

Edited April 3, 2008 by zirhk3355

[hello88 2]

Thanks...wonder how much does it cost to get a lawyer to draft a tenancy of agreement. Anyone got lawyer to recommend.

I wont be 'gun down' by the agency if the agent eventually found out that we and the existing tenants 'pa-gat' and lied that tenants did not wish to extend contract right?

[zirhk3355 1]

Thanks...wonder how much does it cost to get a lawyer to draft a tenancy of agreement. Anyone got lawyer to recommend.

I wont be 'gun down' by the agency if the agent eventually found out that we and the existing tenants 'pa-gat' and lied that tenants did not wish to extend contract right?

First, you did not lie - it IS a re-negotiation and you REALLY did not extend mah! And in any re-negotiation, it may or may not fall thru, so you are taking a risk here when you do not engage an agent in the negotiation.

If you are afraid, use one of these methods:

1. If the 'option to renew' clause says "mutually agreed rates", then you can offer a sky-high rate (eg $10,000/mth). The tenant obviously won't agree and the agreement would be terminated.

2. Really go and re-negotiate and change some of the clauses; in templated tenancy agreements from the agency, there are bound to be some unfavourable clauses. Take them out or rephrase them.

3. Do it within three months of the tenancy's expiry (or as per stated in the tenancy agreement), write a letter to inform the agent about it. THEN re-negotiate another contract.

As for the new tenancy agreement, if you search hard enough, you can get one off the internet lah. Some lawyers do provide free templated contracts online. Read them, if you are ok with the terms, then use it.

[Pauline 0]

please drop me an email at chong.pauline@gmail.com

I can help.

regards

First, you did not lie - it IS a re-negotiation and you REALLY did not extend mah! And in any re-negotiation, it may or may not fall thru, so you are taking a risk here when you do not engage an agent in the negotiation.

If you are afraid, use one of these methods:

1. If the 'option to renew' clause says "mutually agreed rates", then you can offer a sky-high rate (eg $10,000/mth). The tenant obviously won't agree and the agreement would be terminated.

2. Really go and re-negotiate and change some of the clauses; in templated tenancy agreements from the agency, there are bound to be some unfavourable clauses. Take them out or rephrase them.

3. Do it within three months of the tenancy's expiry (or as per stated in the tenancy agreement), write a letter to inform the agent about it. THEN re-negotiate another contract.

As for the new tenancy agreement, if you search hard enough, you can get one off the internet lah. Some lawyers do provide free templated contracts online. Read them, if you are ok with the terms, then use it.

[weezersg 5]

I have rented out my HDB out without using an agent service.

On HDB online, there is a sample of tenancy agreement which you can download and use, after you draft out the TA keep one copy and the other copy which the tenant keeps has to be 'stamp' at IRAS for it to be legal document and binding. Otherwise in any dispute, the law will protect the owner rather than tenant, thus it is the tenant onus to get it stamped.

For finding tenant, just use some online ad, coz of huge demand for rental property, very easy to find tenants, no need to use agent, use only in a weak market.

Be sure to check your tenants EP etc....online on MOM site photocopy it.

[hello88 2]

First, you did not lie - it IS a re-negotiation and you REALLY did not extend mah! And in any re-negotiation, it may or may not fall thru, so you are taking a risk here when you do not engage an agent in the negotiation.

If you are afraid, use one of these methods:

1. If the 'option to renew' clause says "mutually agreed rates", then you can offer a sky-high rate (eg $10,000/mth). The tenant obviously won't agree and the agreement would be terminated.

2. Really go and re-negotiate and change some of the clauses; in templated tenancy agreements from the agency, there are bound to be some unfavourable clauses. Take them out or rephrase them.

3. Do it within three months of the tenancy's expiry (or as per stated in the tenancy agreement), write a letter to inform the agent about it. THEN re-negotiate another contract.

As for the new tenancy agreement, if you search hard enough, you can get one off the internet lah. Some lawyers do provide free templated contracts online. Read them, if you are ok with the terms, then use it.

would wait to see if existing tenants wished to re-contract, if they do then we'll of course get the tenants to re-contract directly with us and not via agent. But like what u mentioned earlier, we'll have to 'reject' the tenants request for extension first (i.e to void the existing tenancy agreement to work round that **** clause). Hmmm.....both sides (landlord and tenants) have to inform agents that tenants do not wish to extend right? Wonder if there must be a break of few days between the existing tenancy agreement and my new agreement once I get it done.

I have rented out my HDB out without using an agent service.

On HDB online, there is a sample of tenancy agreement which you can download and use, after you draft out the TA keep one copy and the other copy which the tenant keeps has to be 'stamp' at IRAS for it to be legal document and binding. Otherwise in any dispute, the law will protect the owner rather than tenant, thus it is the tenant onus to get it stamped.

For finding tenant, just use some online ad, coz of huge demand for rental property, very easy to find tenants, no need to use agent, use only in a weak market.

Be sure to check your tenants EP etc....online on MOM site photocopy it.

thanks. Hopefully the existing tenants 'extend' their stay (via us directly) as they are good tenants and not easy to find good tenants around.