3 Answers

Hi Anne, yes the landlord needs to pay the comm to his agent for renewal of lease.

Regards
Aaron
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  • AG
    Thanks Aaron. But can you explain why ? Because this time the agent does not have to find a tenant and to write a contract, so this comm is for what ?
    Thank you,
Hi Anne,

You may wish to refer to the existing tenancy agreement or service fees agreement signed with the salesperson that commission is payable upon renewal of tenancy agreement in most if not all cases brokered by a salesperson, which means legally salesperson is entitled to the service fees. Alternatively you may wish to look at it from another perspective. What happens if existing tenant decides to pack up and leave. Would you require to hire a salesperson to market the property for rental and pay the service fees for securing the next tenant? What happens if unit is not rented out for a couple of months? Would that amount to greater monetary loss than paying the commission to the existing salesperson for the renewal of lease where there is no loss of rental income?

Is the above reasons sufficient to convince you in the payment of commission upon tenancy renewal?

Regards,
Geryl LIM
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Hi,

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