Agent commission on a rental

On many rental deals in Singapore, particularly where the monthly rent is above a certain level, the landlord pays the appointed agent for finding and closing the tenancy. Where a tenant separately engages their own agent to search on their behalf, the tenant may pay that agent instead. Co broke arrangements, where a landlord's agent and a tenant's agent work the same deal from opposite sides, are also common, with the commission typically shared between the two agents.

The amount itself is agreed upfront between the parties, commonly expressed as a fraction of one month rent or as a set number of months depending on the lease length and rent level. There is no government schedule setting this figure. It reflects market convention, the property type, and the individual agent's own terms, and it can and does vary between deals.

What commonly goes wrong is starting work with an agent before anything is agreed in writing about who pays and how much, treating a figure mentioned informally by one agent as though it were a fixed market rate rather than a starting point for discussion, or a dispute arising when a tenant found through one channel is later claimed by a different agent as their find.

Get the commission arrangement, the amount, and which party is responsible for paying it, confirmed in writing before instructing an agent to act on a rental. It is also worth checking that any agent representing you in Singapore is properly licensed by looking them up on the CEA public register before proceeding.

For landlords managing several units, or tenants comparing offers, being clear on commission terms early avoids awkward conversations once a tenancy is close to being signed and the pressure to move quickly is highest.

Because commission terms are set by agreement rather than by any fixed schedule, it is entirely reasonable to ask an agent directly what they charge and how it compares with typical practice for a similar unit and rent level, before instructing them to act. Doing this early, rather than after viewings have started, keeps the commercial side of the relationship clear for everyone involved.

What to check

• The commission amount and structure, confirmed in writing before work begins
• Which party, landlord or tenant, is responsible for paying under the specific arrangement
• Whether the deal involves a co broke arrangement between two agents
• That the agent representing you is licensed, checked against the CEA public register
• Any conditions attached to the commission, such as what happens if the tenancy ends early

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.