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Asia USA Realty
(Singapore)
asiahomes.com Pte Ltd - Singapore Real Estate Department
15 Sep 2007.
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Focus:
We get for
you affordable Singapore homes. Rent or Investment |
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YOU WANT to rent or buy Singapore homes? |
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MANAGING RENTAL PROPERTIES FOR
FOREIGN/ABSENTEE OWNERS
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Property
Management Agreement - a contract between Asia USA Realtors who manage
the rental property and the Lessor.
Generally, rates for management of rentals for absentee landlords are 10% of the rent per month, depending on the work to be done and the number
of visits to the properties required by the Landlord.
For the HDB flat, the management fee is 10% of the rental or $200
per month whichever is higher when there is a tenant. A one-time
administrative fee of $300 is required.
For the private property, the management fee is 5% of the rental or $300 per
month whichever is higher when there is a tenant. A one-time
administrative fee of $300 is required.
The responsibilities of a Letting Agent will include:
1. Pre-occupation inspection and inventory taking for handing
over. Additional charges of $100 if a record, using digital
photography of the white goods and furniture is required by the Landlord.
2. Contacting the Landlords or contractors approved by the Landlords
for minor repairs.
3. Visiting the tenant quarterly regularly to find out if everything is satisfactory.
4. Banking in cheque payments.
Make sure that the cheques don't bounce.
5. Inspection at termination of lease and a report on work to be done.
6. Look for
tenants 2 months before expiry of the lease.
7. To secure a new tenant, the Landlord pay for the advertisements , say, twice per
week. The estimated cost is S$60.00.
The property with rentals below $2,500 per month will be open to all agents. The Landlord will pay full commission when the
property is closed by any agent including Asiahomes.com company's realtors.
This is to encourage
early closure with all agents.
The present practice of many of the Landlord's agent refusing to
share commission when the rental is $2,500 and below is against the interest
of the Landlord but this is a common market practice.
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Many Landlords regret giving exclusive marketing rights to realtors as the
rental market has declined drastically and there is no
performance.
However, some Landlords have no time to market the properties themselves.
It is best to make sure that the Landlord's agent advertise "Full
commission payable" so that the Landlord's property gets the full
interest from realtors with Tenants.
In this scenario, the Landlord should pay the Landlord's agent a
management fee for opening the apartment for viewing and for handling
queries as well as the key to the property.
The Landlord should make sure that the Landlord's agent does not
misrepresent him as "owner" offering to pay full commission to
attract interest from agents with the tenants. After viewing, the
Landlord's agent then split the commission 50:50 (via co-broking) instead
of paying 100%.
It is best to email judy@asiahomes.com to discuss
the scope of the work involved as a letting agent or refer to our
Property
Management Agreement.
Email for a
surfer.
Dear Judy,
Saw a passage on asiahomes website about letting agent.
1. I may be relocated overseas and am interested to know more about the work of
a letting agent.
- See: Property
Management Agreement.
2. May I know what it means by 10-15% of rental per month? Why is there a range?
- depends on scope of work, faxes, international phone calls and number of
tenant inspection visits.
3. How often does the letting agent check on the tenants?
- Quarterly visits generally.
4. Would the agent
screen for illegal workers?
- Yes. Check on validity of employment pass which may expire
during the duration of the tenancy.
5. Would the agent help the landlord with arranging
for repair or other services if there is a request from the tenant?
- Yes. The Landlord will pay for the repairs and other
services. More info at:
Property
Management Agreement. |
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EMAIL REPLY TO A SURFER - APRIL 2003
HDB APARTMENT RENTAL MANAGEMENT FOR ABSENTEE OWNERS
Hi Judy,
I would like to inquire the services that your company provide base
on the
circumstances that I am leaving Singapore. I would really
appreciate if
you could also advise whether it is a hassle to rent out or just return
it to
HDB (I bought the flat last year with grant).
MUCH DEPENDS ON YOUR APPETITE FOR LOSING MONEY. IF YOU RETURN TO THE
HDB,
HOW MUCH ARE YOU GOING TO LOSE?
> * Please advise what services you will provide and how much is the fee.
BASICALLY WE LOOK FOR LEGAL AND GOOD QUALITY TENANTS, MAKE SURE THEY PAY
RENT, SOLVE THEIR HOUSE MAINTENANCE PROBLEMS IN YOUR ABSENCE (MONEY TO
BE
PAID BY LANDLORD) AND LOOK FOR NEW TENANTS.
> * What happens if your firm fails to find a tenant?
WE CAN'T PAY THE LANDLORD ANY PENALTY FOR FAILURE TO FIND A TENANT.
WE ADVISE THAT THE LANDLORD ADVERTISES WEEKLY (MONEY TO BE PAID BY THE
LANDLORD ESTIMATED TO BE $30) AND WE FOLLOW UP CLOSELY AND GIVE YOU MONTHLY REPORTS ON THE
MARKET SITUATION
> * How much additional rent could be expected by not locking 1
bedroom? I prefer to lock a room.
IT IS ILLEGAL TO RENT WITH ONE ROOM LOCKED IF YOU RENT THE WHOLE
APARTMENT
WITHOUT HDB APPROVAL. IF YOU RENT THE WHOLE APARTMENT, RENTAL
SHOULD BE
$500 MORE FOR THE BIGGER UNITS.
> * What are the advantages/disadvantages in granting your firm power
of attorney in lieu of the Owner's relatives?
YOUR POWER OF ATTORNEY IS RESTRICTED TO THE HOUSING AGENCY BEING ABLE TO
SIGN THE TENANCY AGREEMENT, RENT AND DECIDE ON RENTAL AMOUNT SHOULD YOU
NOT
BE CONTACTABLE.
RELATIVES MAY NOT WANT TO WORK FOR FREE AS TIME IS MONEY AND RELATIVES
FEEL
UNCOMFORTABLE BEING PAID BY YOU AND YOU MAY UNDERPAY THEM AS WELL.
AGENTS
WORK FOR A LIVING AND GET PAID TO DO THE JOB FOR YOU.
How much would your firm charge for this service and is it a one time fee?
WE CHARGE $300 ADMINISTRATIVE FEE ONE TIME AND 10% OF THE RENTAL
PER MONTH
WHEN THE APARTMENT IS RENTED OR $200 WHICHEVER IS HIGHER.
> * How is maintenance of the flat handled?
BY YOUR APPROVED CONTRACTORS. THE AGENT CONTACTS THEM WHEN THERE IS A
PROBLEM, CLARIFY WITH YOU THE AMOUNT TO BE PAID. THEY BILL YOU OR
WE PAY
THEM FROM YOUR PETTY CASH AMOUNT WITH US.
> my flat information is as follows (furniture
and
> appliances are brand new) Jurong West Central 4 room flat
> * All bedrooms with air-con, cloths cabinet & queen size bed in
master
> bedroom
> * Water heater in both toilets
> * Fridge, Washer, dryer, stove & cooker hood
> * Sofa & Dining Set
MONTHLY RENTAL AROUND $1,200 - $1,500 DEPENDING ON QUALITY OF FURNISHING
AND
PROXIMITY TO THE MRT (SUBWAY).
2003 HDB RULING FOR RENTING THE WHOLE HDB APARTMENT
If the HDB flat including resale flat is purchased with the help of
a HDB loan and is over 5 years old, the owner can lease the whole
apartment. The HDB must be informed and the property tax will be
increased to that of a rental apartment rather than the concessionary
rate.
The fine print is this. The HDB loan must NOT be a subsidised
loan! The owner must have paid interest at the commercial rate
during the years of mortgage. Otherwise, the ruling does not apply to
him! Consult the HDB for the latest ruling in 2008. We
provide this service for a fee if you don't have time to do it
yourself. |
For the latest updates on the subject of rental management,
tel: + 9668 6468, 65 6254-3326. Fax: +65 6256-0501 to get more info.
E-mail:
judy@asiahomes.com to get a list of housing or to view housing in
Singapore.
©Asia USA Realty (Singapore) asiahomes.com
Pte Ltd.
Website:
asiahomes.com.
House Agent's Licence No. AD041-07306B
Blk 1002, Toa Payoh Lor 8, #01-1477,
Singapore 319074, Republic of Singapore
Asia USA
Realty (Singapore) asiahomes.com Pte Ltd
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