Page 1 of 2 12 LastLast
Results 1 to 30 of 34

Thread: Renewal of tenancy agreement

  1. #1
    Join Date
    May 2012
    Posts
    5

    Default Renewal of tenancy agreement

    Hi, my tenant intends to renew tenancy agreement but would like to DIY to save on agent's commission. However, I have signed CEA form that states first renewal need to pay half month rent for one year extension. Any option to overcome that? Can i still sign a new agreement without paying the agent fee?
    Since i dont need agent to look for new tenant, don't feel worthwhile to pay the agent fee for renewal.

    Thanks.

  2. #2
    Join Date
    Apr 2013
    Posts
    39

    Default

    Quote Originally Posted by bergkamp
    Hi, my tenant intends to renew tenancy agreement but would like to DIY to save on agent's commission. However, I have signed CEA form that states first renewal need to pay half month rent for one year extension. Any option to overcome that? Can i still sign a new agreement without paying the agent fee?
    Since i dont need agent to look for new tenant, don't feel worthwhile to pay the agent fee for renewal.

    Thanks.
    I find that communication with tenant is key to avoiding using an agent.

    If you like to play safe, you can Google for a TA, d/l and use it. TAs are similar. You need to communicate with tenant, who pays stamp fees, etc.

    Always remember to pay the stamp duties.
    http://www.iras.gov.sg/irasHome/page04.aspx?id=2132

    And never forget to check with authorities that FT is a legal alien.

  3. #3
    Join Date
    Jun 2009
    Posts
    2,309

    Default

    Quote Originally Posted by bergkamp
    Hi, my tenant intends to renew tenancy agreement but would like to DIY to save on agent's commission. However, I have signed CEA form that states first renewal need to pay half month rent for one year extension. Any option to overcome that? Can i still sign a new agreement without paying the agent fee?
    Since i dont need agent to look for new tenant, don't feel worthwhile to pay the agent fee for renewal.

    Thanks.
    Your can extend it by 6 months first, then pay the agent off 1/4 month. Then sign a fresh one after 3 months. Hopefully, that gets the agent off your back.

    And as some mentor here Jeff teach me, next time dont let agent put in the renewal clause.

    DKSG

  4. #4
    Join Date
    Apr 2013
    Posts
    39

    Default

    btw, if you intend to get agent for renewal of lease, get him/her to broker for higher rental agreement... CM7 is a great reason to increase rental!!!

  5. #5
    Join Date
    May 2012
    Posts
    5

    Default

    Thanks for the advice, think i will renew for 6 months and pay quarter month to get agent of my back. Yes, i have declared rental income to IRAS.

  6. #6
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    If the agent has found a tenant for us but refuse to take out the renewal clause, then how?

  7. #7
    Join Date
    Oct 2011
    Posts
    203

    Default

    The agent got no right to demand to insert the renewal clause in, unless you had sign??

    We need to pay agent for the initial fees as he/she take effort to find the tenants, pay them, but after 2yrs, when renewal, really don't see the why leh? (sorry to the property agent, but we are looking as a Landlord point of view....)

    Quote Originally Posted by irisng
    If the agent has found a tenant for us but refuse to take out the renewal clause, then how?

  8. #8
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    If they help to liaise with tenant for whatever complains, ok lah right? We should reward hard-working agents... In turn, they will work hard to get higher rent for you...

    Quote Originally Posted by TMATT
    The agent got no right to demand to insert the renewal clause in, unless you had sign??

    We need to pay agent for the initial fees as he/she take effort to find the tenants, pay them, but after 2yrs, when renewal, really don't see the why leh? (sorry to the property agent, but we are looking as a Landlord point of view....)

  9. #9
    Join Date
    Oct 2011
    Posts
    203

    Default

    Bro, Your point i agree, however our few Condo Rental experience tell us that not always true
    The agent usually never liaise with tenants for any follow up.
    (or you got good agent to recommand?)

    That the reason we stop all the renewal commission from last year onward.

    It better to save the money, and Bro, you know .... It is really BIG saving (rental for 1yr = half month commission,
    rental for 2yrs = 1mth commission,
    rental for 3yrs = 1.5month commission)

    imagine the few condos are rent out at total rental of $20,000 monthly,
    you can handle the renewal rental by using online tenants agreement, that can be saving of close to 6 figures profit if they all renews it for 5-8yrs.

    But as i said, maybe just our luck, that yet meet good property agent...

    Quote Originally Posted by teddybear
    If they help to liaise with tenant for whatever complains, ok lah right? We should reward hard-working agents... In turn, they will work hard to get higher rent for you...

  10. #10
    Join Date
    Aug 2009
    Posts
    3,943

    Default

    If the agent is working hard for me during the tenancy period, I will pay them com for the renewal. If not, forget about it.

    I think, it is fair to all, everyone needs to make a living.

  11. #11
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    I have not been a landlord before, so tenancy agreement is new to me. Mind to share where can I find the sample of the tenancy agreement? Do you all mean during the tenancy period, any problem with the tenant or repair matters, we will get the agent to talk to them on our behalf and not that we talk to them personally?

    When signing the new set of tenancy agreement with the tenant, if find that some of the clauses are not in our favor, eg renewal clause, can we just cancel the clause or need to get the agent to re-print a new set of the agreement? Of course, if this agent is doing a good job during the new tenancy period, then I don't mind to pay for the renewal comm, if not, I don't think I'm willing to pay for this additional money.

  12. #12
    Join Date
    Nov 2010
    Posts
    142

    Default

    I have not done this, just an idea. Can we let the 1st agreement lapse for 1 day. then there after take it as a new contract again, treating it like new tenant without going through agent. Eg 1st contract starts from 1/1/2010 to 1/1/2012. then i start a new contract from 3/1/2012 to 3/1/2014. This should disqualify as a RENEWAL , as there is a break of 1 day
    Last edited by joelx; 16-04-13 at 09:50.

  13. #13
    Join Date
    May 2009
    Posts
    3,677

    Default

    Quote Originally Posted by joelx
    I have not done this, just an idea. Can we let the 1st agreement lapse for 1 day. then there after take it as a new contract again, treating it like new tenant without going through agent. Eg 1st contract starts from 1/1/2010 to 1/1/2012. then i start a new contract from 3/1/2012 to 3/1/2014. This should disqualify as a RENEWAL , as there is a break of 1 day
    the intention of the act itself speaks otherwise. is there a possibility of the agent finding out? if he finds out, what are the consequences?

  14. #14
    Join Date
    May 2012
    Posts
    5

    Default

    http://www.cea.gov.sg/cea/content/es...Agreement.html

    Estate Agency Agreement for the Lease of Residential Property by a Landlord - With ref to para 4d of the form, please ensure this clause is removed if do not wish to pay renewal commission.

    As to whether we can let the tenancy agreement (TA) lapsed and do not sign renewal TA, has any landlord/tenant done that before ? To avoid renewal commission. Can agent take the landlord to court ?

    Thanks.

  15. #15
    Join Date
    Aug 2011
    Posts
    1,516

    Default

    For personal lease, i always make sure i remove the renewal clause. For corporate lease, i prefer agents to handle for me.

  16. #16
    Join Date
    Nov 2010
    Posts
    142

    Default

    Quote Originally Posted by eng81157
    the intention of the act itself speaks otherwise. is there a possibility of the agent finding out? if he finds out, what are the consequences?
    I agree that the intention of this act is obvious, but i did not breach a single term from the agreement. it will be perfectly fine to let the agent find out.

    The clause do not say that i must pay the Renewal fee subsequently if i am going to rent to the same tenant in future.

    Renewal = Continuous period without any lapse.

  17. #17
    Join Date
    May 2009
    Posts
    3,677

    Default

    Quote Originally Posted by joelx
    I agree that the intention of this act is obvious, but i did not breach a single term from the agreement. it will be perfectly fine to let the agent find out.

    The clause do not say that i must pay the Renewal fee subsequently if i am going to rent to the same tenant in future.

    Renewal = Continuous period without any lapse.
    if he can sue you for damages, trust me, the court will look at the intent and it won't be favourable for you. if there is no avenue for him to seek redress, then by all means proceed without fear.

  18. #18
    Join Date
    Feb 2013
    Posts
    106

    Default

    Quote Originally Posted by Laguna
    If the agent is working hard for me during the tenancy period, I will pay them com for the renewal. If not, forget about it.

    I think, it is fair to all, everyone needs to make a living.
    had an experience where i had a good tenant (corporate lease) and the agent had a commission clause for renewal. i told the agent i wouldnt be paying this and *poof*, tenant also went with the agent who promised to find him a better place.

    after that learnt my lesson - i will tell the agents i will give them 1/4 month for renewals, and so far, all have accepted, as they are able to get repeat business from me. most of the the time, they also assist to push up the rental (even a couple of % points helps)

    so my advice is to not be penny wise and pound foolish.

    build a relationship with them and they will always keep you in mind if they have good deals.

  19. #19
    Join Date
    Feb 2013
    Posts
    106

    Default

    Quote Originally Posted by bergkamp
    http://www.cea.gov.sg/cea/content/es...Agreement.html

    Estate Agency Agreement for the Lease of Residential Property by a Landlord - With ref to para 4d of the form, please ensure this clause is removed if do not wish to pay renewal commission.

    As to whether we can let the tenancy agreement (TA) lapsed and do not sign renewal TA, has any landlord/tenant done that before ? To avoid renewal commission. Can agent take the landlord to court ?

    Thanks.
    if you don't sign a new TA, how are you protected? your tenancy is not legal in the eyes of the law without stamp duty. if the tenant tries any monkey business, it will be good luck to you ...

    also - most agents probably won't go the legal route, since they rather spend their time serving other landlords and making more comm. you want to sue .. can .. but remember that legal fees start in the thousands, not the hundreds

  20. #20
    Join Date
    Nov 2010
    Posts
    142

    Default

    Quote Originally Posted by eng81157
    if he can sue you for damages, trust me, the court will look at the intent and it won't be favourable for you. if there is no avenue for him to seek redress, then by all means proceed without fear.
    Fully agree with you that the court will look at the intent. But is a grey area. The claused should mention " rent to the same tenant within 3months from the end of contract need to pay renewal fees."

  21. #21
    Join Date
    May 2009
    Posts
    3,677

    Default

    Quote Originally Posted by joelx
    Fully agree with you that the court will look at the intent. But is a grey area. The claused should mention " rent to the same tenant within 3months from the end of contract need to pay renewal fees."
    i won't be able to comment on this, since i'm not privy to the terms on your agreement.

    besides seeking redress legally, the agent can go behind your back and undercut you by offering a better deal to the tenant. e.g. find cheaper rent for tenant, take a commission cut is still better than nothing

  22. #22
    Join Date
    Apr 2013
    Posts
    39

    Default Model TA from CASE

    Quote Originally Posted by irisng
    I have not been a landlord before, so tenancy agreement is new to me. Mind to share where can I find the sample of the tenancy agreement? Do you all mean during the tenancy period, any problem with the tenant or repair matters, we will get the agent to talk to them on our behalf and not that we talk to them personally?

    When signing the new set of tenancy agreement with the tenant, if find that some of the clauses are not in our favor, eg renewal clause, can we just cancel the clause or need to get the agent to re-print a new set of the agreement? Of course, if this agent is doing a good job during the new tenancy period, then I don't mind to pay for the renewal comm, if not, I don't think I'm willing to pay for this additional money.

    http://www.case.org.sg/downloads/cen...0Agreement.doc
    http://www.case.org.sg/downloads/cen...0Agreement.pdf


    When you have problem such as late payment or no payment from tenant, that is when you able to gauge how good your agent is!

  23. #23
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    It is better to have tenant landlord shout stay a distant from them. It is easier when it comes to increase rental without any attached emotion.Worth paying the commission especially those with a few properties.

  24. #24
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    i have never been around at Handover or Takeover ...

    my agent handles everything for me and she does it well ...

    and i pay her for her work ... after 2 yrs... at renewal .. i would pay her as well ...

    shes the only contact point between me and my tenants...

    so far no problem at all ...

    i dont quite understand find ways to save that money ...

    even though its now removed ...we have been paying TV license for YEARS and still paying for Radio license for cars...

    yet we arent questioning why are paying and instead find ways to cut agent fee ?

    solid

  25. #25
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    Quote Originally Posted by delirious_jeff
    http://www.case.org.sg/downloads/cen...0Agreement.doc
    http://www.case.org.sg/downloads/cen...0Agreement.pdf


    When you have problem such as late payment or no payment from tenant, that is when you able to gauge how good your agent is!
    Thank you for your link, I will look into it. You mean when there is no payment or late payment, we can get our agent to chase the payment for us?

  26. #26
    Join Date
    Apr 2013
    Posts
    39

    Default

    Quote Originally Posted by irisng
    Thank you for your link, I will look into it. You mean when there is no payment or late payment, we can get our agent to chase the payment for us?
    I think it is better that you engage a real estate salesperson. After you have encountered several kinds of tenants and agents, you know what to do and which forum to visit.

    I have engaged agents before and after this CEA. All disappears after being paid, some immediately... And I have to handle the tenants myself. Agents did not reappear when TA near expiry (unlike politicians a few weeks before election).

  27. #27
    Join Date
    May 2009
    Posts
    3,677

    Default

    Quote Originally Posted by irisng
    Thank you for your link, I will look into it. You mean when there is no payment or late payment, we can get our agent to chase the payment for us?
    of course!!! that's what the commission is for.

  28. #28
    Join Date
    Apr 2012
    Posts
    1,677

    Default

    I have a gd agent and i would rather pay her dues and get gd service.
    There is no good or bad location. There is only good or bad price.

  29. #29
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    Do you all normally get the same agent to help you to find the tenants or prefer to try different agents?

  30. #30
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    Normally get a few agents, whoever get the tenant first and with best rental wins the agent fee...

    Quote Originally Posted by irisng
    Do you all normally get the same agent to help you to find the tenants or prefer to try different agents?

Similar Threads

  1. Tenancy Agreement
    By proud owner in forum HDB, EC, commercial and industrial property discussion
    Replies: 26
    -: 27-10-13, 18:27
  2. Stamping of Tenancy Agreement
    By babyworm in forum Singapore Private Condominium Property Discussion and News
    Replies: 7
    -: 07-11-12, 16:37
  3. Early Termination of Tenancy Agreement
    By dreamroof in forum Singapore Private Condominium Property Discussion and News
    Replies: 42
    -: 04-01-12, 19:40
  4. can amend tenancy agreement?
    By deljunks in forum Singapore Private Condominium Property Discussion and News
    Replies: 6
    -: 07-12-11, 21:45
  5. Tenancy Agreement Question
    By thomastansb in forum Singapore Private Condominium Property Discussion and News
    Replies: 36
    -: 15-05-11, 23:51

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •