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Typical Estate Agent's Commission / Fee

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  1. #1

    Typical Estate Agent's Commission / Fee

    Off topic, but whats a common agency fee?

    I went to a few agencies, the first said half the cost of a months rent which seems fair. Then I went for a few others and they said their fee was 1 months rent, even when they weren't very helpful.

    Thanks!


  2. #2

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    Quote Originally Posted by Jamiehere:
    Off topic, but whats a common agency fee?

    I went to a few agencies, the first said half the cost of a months rent which seems fair. Then I went for a few others and they said their fee was 1 months rent, even when they weren't very helpful.

    Thanks!
    An agent's typical commission will be one months rent, half paid by the tenant and half paid by the landlord. Of course, these things are often negotiable and if you bargain hard enough you might be able to get a better deal.
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  3. #3

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    Quote Originally Posted by jmbf:
    An agent's typical commission will be one months rent, half paid by the tenant and half paid by the landlord. Of course, these things are often negotiable and if you bargain hard enough you might be able to get a better deal.
    At the same time, you want the agent to be doing as much as possible for you. So, if you bargain too hard with the agent over commission (which is a small price to pay compared to the monthly rent you are committing to), then in the long run you might not get as good a deal as you might have been able to. When you are renting, you want the landlord to come down in price as much as possible, you want a rent free period (longer is better), you want the flat at least cleaned, maybe redecorated, you might want some new furniture, some taken away; plus anything else particular for your requirements. The agent can help you negotiate all of these, so best to try to keep them on your side.

    All said, I do think the HK estate agent arrangements are strange. The agent is supposed to be neutral, acting for both parties, but the parties often have conflicting demands, so tenant and landlord are never quite sure what is going on.
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  4. #4

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    Agent fee is typically half month. For industrial buildings I've seen many agents charge 1 month. This is your fee and the landlord pays their own fee.

    Agents typically work in the interests of the landlord. Landlords come back to buy investment properties and typically own multiple properties. Tenants provide little benefit to agents. The whole process is all a sales game. Landlords tell agents the asking price and bottom price and agents present it to look like you are getting a discount. Agencies control the information put online too so research gives an altered indication.

    Good luck. Check to make sure everything is working before you sign anything. Don't buy that we will fix it later line.

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  5. #5

    If you want to avoid the commission fee, you can search the site: Buy & Rent Hong Kong Property - 28Hse - Apartments, Homes, Real Estate for Sale or Buy Property in Hong Kong | Hong Kong Homes for Sales and Rent | GoHome or 591房屋交易網,提供香港租屋、買樓 訊刊登及搜尋 , try to look for those rent by the owners and contact the landlords by yourself to see the flats. Good luck!

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  6. #6

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    Normally 1 month, split half and half between the tenant and landlord, although this can be negotiated (ie: tenant can pay less if he negotiates with the agent without telling the landlord and the agent will receive less than 1 month of rent).

    Keep in mind that in a vacuum, the agent's commission structure does not encourage them to bargain down the monthly rent because: 1) lower the rent, the less the agent receives in commission; 2) some landlords have multiple properties that are covered by one agent and the agent doesn't want to piss off the landlord; 3) the market supply of renters in HK is massive in some areas and so agents may rather focus on looking to steer other prospective renters into competing with you rather than help you out; and 4) agents sometimes just don't give a shit because they want to minimize the time spent closing a deal and maximize turnover and therefore only focus on closing deals rather than negotiating.

    To get the best deals (I am not implying the cheapest apartment but rather one that I would consider to be good value based on my personal criteria), I have seen two strategies work best: 1) rent an atypical apartment (ie: for 3 bedroom apartments rather than 2 bedroom apartments) that renters typically don't rent so that you have less competition; and 2) utilize multiple agents for the same properties. I have had success with both methods (below market rates by 10% to 15%, below asking price by 20%).

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  7. #7

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    Quote Originally Posted by Viktri:
    utilize multiple agents for the same properties. I have had success with both methods (below market rates by 10% to 15%, below asking price by 20%).
    Do you mind elaborating on how using multiple agents for one place helps to bring down the price?

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    What happens when the agent tells you their company are the Sole agents

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    Original Post Deleted
    Do agents force you to sign a non-compete?

  10. #10

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    Quote Originally Posted by kkdo:
    Do agents force you to sign a non-compete?
    Force is the wrong word, they try to insist.

    Ultimately if another agent is going to show you the same property you've already seen, you're not going to want to see it again unless it's 'the one'

    If they're the sole agent, they're not fussed as it's them or nothing.

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