Rental renewal - agent's commission?

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  1. #1

    Join Date
    Oct 2007
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    Rental renewal - agent's commission?

    I hope this is not a silly question. I searched the forum and couldn't find an answer.

    I'm about to renew my rental with my landlord. I wonder if I need to pay my former agent any commission, even though the agent is not involved in the renewal process?

    I cannot find the agreement I previously signed with the agent. I know in some countries, there is clause in agent agreements that in the event of renewal, they are entitled to commission (e.g. 1/2 month per year renewal) even if they were not involved in the renewal negotiations.

    What is the practice in Hong Kong?

    Thanks


  2. #2

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    Not required, unless in rare cases where it's stated in the contract.


  3. #3

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    Normally not necessary if the agent is not involved. Even if they are, you can always negotiate a discount since less work is involved.

    In your particular case, to safeguard yourself you should make sure the new tenancy agreement is stamped and the stamp duty is normally spilt 50:50 between you and the landlord.


  4. #4
    er2
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    You need to keep the agent of it though. There was once a case here where someone told his agent that he wanted to extend, she did the paperwork and then charged him half a month's rent (which apparently was a substantial fee...). End of the story was - hardly anything you can do about it afterwards. But if you just sort it out between yourself and the landlord you should be fine..


  5. #5

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    StamP Duty

    What is Stamp Duty exactly and how much is it? Is it additional to the commission? Why stamp duty on a rental?


  6. #6
    er2
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    it is negligible compared to the commission. Mine was 120HK$ split between the landlady and me....


  7. #7

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    Stamp Duty

    Thanks for that. Is it based on the amount of rent or is it an arbitrary number?


  8. #8
    er2
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    Quote Originally Posted by Tommyknocker
    Thanks for that. Is it based on the amount of rent or is it an arbitrary number?
    depending on the length of the agreement and on the rental, but small either way: Stamp Duty Rates

    scroll down to tenancy agreements

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  10. #10

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    Oct 2007
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    Thanks all for the useful info!