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TIPS for NEW SINGAPORE HOUSING AGENTS

OCTOBER 4, 1997.

BREAK LEASE. This case study may be useful to expatriate Tenants and new Managing Agents. See Tips for Expatriate Tenants, Oct 4 case for other details..

  1. Delay or non-payment of rentals. This is a symptom of ill health of the Company or the Tenant (personal lease). Managing Agents must be aware of the "non-payment" of rentals as this is an indication something is wrong. If the Head Office wants to close the Singapore Company, there will be some delays in rental payments due to changes. For personal lease, the Tenant may be moving out quietly.

It is therefore important to get a good quality Tenant for the Owners. Unfortunately, this may not be possible in this declining rental market.

  1. Refund of Agent’s Commission. Some financially unstable agents do not refund the pro-rated commission (brokerage fee). In contracts, include a clause that the Tenant will be responsible for the payment of pro-rated commission on breaking lease.
  1. Finding a replacement Tenant by the Agent may be one way to avoid payment of pro-rated commission.

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Dr Sing Kong Yuen


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