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Why the tenant need to pay to the agent who is appointed by the landlord?
Hi, we thought that agent fee is applicable to the owner side. However, after viewing the unit, we were so shocked and confused after we were told by the property agent that we need to pay for the agent fee as well (from tenant side). Can I conclude that if the tenant refuse to pay for the agent fee and even though is about 85% confirm from the owner on the tenancy, the deal also will not happen? Because tenant refuse to pay for the fee. Just to clarify if property guru allows the property agent to collect agent fee from the owner and tenant (both parties). Appreciate your further assistance and advice on this matter and feel free to contact me know for any clarification.
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3 Answers

Hi,

Yes you are right. As some landlord don’t pay any commission at all and they would expect their agent to collect from the tenant directly. So if you are not uncomfortable in paying commission, then you may choose to move on and to skip this flat.

Regards
Aaron
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  • AT
    fake news.seller agent can't collect commission from the buyer.
Dear sir/mdm,

Agents are not allowed to collect commission from both landlord and tenant, however, not all listing agents are collecting commission from the landlords as some of these landlords will require the agent to collect commission from the tenant, thus it is always important to seek understanding from the listing agent first if commission is applicable before arranging for viewing.

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  • Geryl Lim
    When an agent has no listings to market, they will not have tenants or buyers. So some are willing to take on listings that owners themselves are advertising, as owners are not willing to pay commission but ok for agent to market the listing as long as they do not need to pay commission. Under such circumstances, the agent will look into collecting the commission from tenant. As long as they are up front about this, if the tenant is unwilling to pay the commission, then both can just move on.
  • HA
    why would the LL who commissioned his own agent to get his commission from the tenant though? That's straight up clownery. The LL's agent's job is to market the place and find him a suitable tenant. Unless of course, the tenant directly engaged the said agent to find them a place then yeah, they should pay his fee.
In Singapore, there's no universal rule on who pays the agent's fee for rental properties. Here's a breakdown to clarify the situation:

* **Commission Not Fixed:** The commission amount and who pays it (landlord or tenant) are usually negotiated between the property agent and the landlord **before** finding tenants.

* **Landlord or Tenant Pays:** The agent's fee can be paid by the landlord only, by the tenant only, or split between both parties. PropertyGuru listings might mention "no co-broking" which implies the landlord's agent expects to handle the entire process, including negotiating the commission structure with the landlord.

* **Your Situation:** Since the agent informed you about paying the fee, it seems the landlord likely expects the tenant (you) to cover part or all of the commission. If you weren't informed beforehand and it's not agreeable, you can negotiate with the agent or politely decline proceeding if the fee is a deal-breaker.

* **PropertyGuru Fee Policy:** PropertyGuru doesn't dictate who pays the commission. They connect landlords and agents, leaving the fee structure to their agreement.

**Here are some suggestions for you:**

* **Negotiate the Fee:** If you're interested in the property, try negotiating the agent's fee with the agent. Be polite and explain your budget constraints.

* **Consider Other Listings:** Search for listings mentioning "no agent fee" or where the fee is explicitly stated as the landlord's responsibility.

* **Look for Different Agent:** There might be other agents representing similar properties with different commission structures.

**Remember, clear communication is key.** If you're unsure about the fee structure, ask the agent upfront before viewing any properties to avoid confusion later.
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