Fees For Renting Out Property - Lawyer Or Agent?

[matrix0405 0]

For my case, I did not use an agent. However, agent with tenant came and like the place. Agent did not get any fees from me, but I supposed he was paid by the tenant. Of course to be fair I try not to trouble the agent too much since i'm not paying him, though he did offer help in lots of other matters to help get place ready for tenant. Frankly if he proves to be good during the tenancy, I wouldn't mind paying for his services when its due for renewal or finding a new tenancy.

Thanks for the interesting information. Did you rent out the whole unit and was your rental above $3K?

[GoalHome 1]

Thanks for the interesting information. Did you rent out the whole unit and was your rental above $3K?

Yes to both the above questions. I couldn't be bothered renting out rooms, not worth my while IMO.

[matrix0405 0]

Now, more and more tenants'agents getting commission direct from the tenants, rather than landlord. The industry is getting more professional as respective agents can now better represent the interests of their own clients. Agents who do so much legwork for the tenants deserved to be paid by them.

[beluga 1]

I simply don't understand, why agent must still get commission when it is time for renewal...

[propertysoul 0]

I simply don't understand, why agent must still get commission when it is time for renewal...

I think the agent deserves to receive commission from the landlord if:

- He/she is the one who rented out the flat for the landlord in the current tenancy. And two months before the tenancy ends, he/she initiates to contact the tenant for any intention to renew the contract.

- He/she will check the condition of the flat, prepare the tenancy renewal document for both parties to sign, and have it stamped for the landlord's filing.

- After renewal of the tenancy, he/she will continue to be the main contact of the tenant. Arrange for necessary repairs and settle the payments on the landlord's behalf.

- In case of any dispute (e.g. late payment, complaints from neighbors, etc.), he/she will consult the landlord before settling the matter with the tenant.

- In case the tenant asks for early termination, he/she will follow-up with the tenant for the landlord for penalty stated in the contract and refund of agent's commission (pro-rata).

Edited April 5, 2012 by propertysoul

[propertysoul 0]

You may like to read the following post on my personal experiences of renting my properties by myself versus by my agent:

http://propertysoul.com/2012/04/05/to-let-by-agent-or-by-yourself-part-i/

[70wood 0]

If you have all the time in the world to handle prospective tenants, DIY. That will save you commission. Careful about advise on not using lawyers, and instead use CEA standard tenancy agreements. Agents are not lawyers, and unless they are so well versed with the law, and all related statutory matters, it is best to rely on the integrity of a trained legal person. Standard tenancy agreements only provides standard terms, and where terms that are peculiar to your property per se, you may not find them inside. One thing you may want to include into you tenancy agreement if you are renting to a corporate entity (meaning a company), companies can just closed off and you may not get redress should tenant go into arrears, or breached the tenancy agreement. So ask for personal guaranteed against that contract, but this will make it difficult for you to rent out if they are not willing to sign a personal guarantee. But, since they are not willing, the risk might quite be obvious. You may also want to set a term regulating who the tenant invites into the property to reside. Harbouring of illegal immigrants is an offence, so you may want to include certain terms preventing that.

http://70wood.blogspot.com

[avidmonkey80 0]

For me, I have always stick on to using my agent to save me all the hassle of answering calls and answering so many queries from prospective tenants.

Unless u are super free to entertain all calls, arranging them to view your house and preparing all the paper works.

I am glad for her gd service and hard work and is willing to pay her her deserved commission.

It will be 0.5mnths for 1 year lease and 1 mtnh comm for 2yrs lease.

Nowadays tenants are getting more fussy and have lots of request.

Gd luck