While it is generally recommended to hire a real estate agent when purchasing a home, others frequently inquire whether it is necessary when renting a unit.
Renting a residential home is not as difficult as purchasing one, at least initially. Once you’ve identified a good rental property in an area with a lifestyle and facilities that appeal to you, you contact the landlord and schedule a viewing. If everything is satisfactory, you sign a lease agreement and agree to abide by its provisions, including timely payment of your monthly fee.
However, are you losing out by not retaining the services of a real estate agent to assist you with your rental?
Is an agent necessary to assist me in locating a rental home?
The benefit of employing a real estate agent is that you will be working with a qualified expert who is knowledgeable about the industry’s ins and outs. If your agent is knowledgeable and has a proven track record, he or she will point out issues you may miss, whether they are in the homes you are considering or in the leasing agreement you will sign with your landlord.
Simultaneously, an agent may not only assist you in negotiating with landlords but also provide recommendations based on your budget and tastes, as well as his own knowledge. He will also be able to assist you in arranging property viewings, representing you in discussions with landlords, assisting you in reviewing pertinent papers, and advising you on the leasing agreement.
Additionally, agents often have enormous networks that they may use to their advantage. This is particularly advantageous if you are renting an apartment for the first time.
How do I choose a trustworthy agency to assist me in locating a rental home?
If you do not already have an agent, you may consult HeyJoles, we can assist you. Additionally, you can solicit recommendations from members of your social circle.
When discussing the kind of property you’re searching for with the realtor, it’s really beneficial to have a list of particular specifications. For example, what is your budget, what sort of location or commuting times are you seeking, and whether you want a furnished or unfurnished unit?
As a general guideline, before contracting an agent, verify that the agent is currently registered with the Council of Estate Agents, the government agency responsible for regulating real estate agents and businesses in Singapore. Otherwise, it is illegal to work for an agency. A registered agent must carry an Estate Agent Card that includes his or her name, portrait, registration number, as well as the name and license number of his or her business. You may verify the status of the agent by entering this information into the Council’s Public Register.
Is it necessary for me to pay a commission to the agency in order to rent the unit?
When you hire an agent to assist you with the rental process, you must agree on the fees that will be charged upfront.
Generally, tenant’s agents may be compensated by the landlord’s agent for co-brokerage. This is often the case when the lease is for two years and the rental charge exceeds a specified threshold (current market rates hover around $3500 per month). The renter will not be charged a commission in this instance. However, if the lease is for less than a year and/or the monthly rental is less than market value, the tenant’s agent may request payment from you, the tenant. This is, however, negotiable, and you should discuss and agree on it in advance.
One issue to keep in mind is that a tenant’s agent cannot collect a co-brokerage fee from the landlord’s agent while also receiving a commission from the renter. This is a violation of the “dual representation” rule, which prohibits real estate agents from representing or collecting fees from both parties in a transaction.
The commission payable to your agent must be made to the agency, not to the agent directly. On the CEA’s website, you may learn more about using an estate agent to handle residential rental transactions.
What happens if I choose not to work with an agent?
If you are familiar with the process, you may conclude that the services of a real estate agent are unnecessary. Additionally, doing everything yourself saves you the time and money associated with locating and compensating a qualified agent.
However, since you will be working alone, you must exercise extra caution and attention to detail. Keep an eye out for potential flaws when viewing a property. View the property at various times of the day to get a sense of what life might be like if you lived there.
Prior to signing the tenancy agreement, keep an eye out for unfair terms, caveats, and loopholes to ensure that you are protected and fully aware of the situation. Additionally, you may want to inquire about the landlord’s ties with previous renters in order to determine his trustworthiness.
Finally, it is entirely up to you whether or not to hire an agent. You are strongly urged to do so if you are a novice renter or have previously been inconvenienced owing to overlook; however, this becomes less necessary if you have leased successfully in the past and are confident in your ability to manage the process effectively on your own.