[Traffic]

Hi all,

1. what are the usual rates for the agencies like Centaline for finding the apartment for rent?

2. Are these rates (I suppose they're something around 50-100% of 1month rent) negotiable?

[Boris]

The norm is half of one month rent. Anyone trying to get one month is trying to get a Gweilo bonus.
We have just arranged some storage with an agent ( who got us a real good deal ) and even that was half month commission after he tried to claim one month. Shop arround if they try one month or more. Plenty of agents out there.

[mjk]

All agents i tried asked for 50%. But I have heard they are flexible and that you should negotiate. The market seems to be rather competitive and I am sure it also depends what price range you are talking about.

My landlord started a big discussion and Centaline lowered to 25% for him (because he didn't get the rent he wanted from me).

mjk

[JAherbert]

Originally Posted by Traffic

Hi all,

1. what are the usual rates for the agencies like Centaline for finding the apartment for rent?

2. Are these rates (I suppose they're something around 50-100% of 1month rent) negotiable?

all agents charge the same 50% of monthly rental (landlord also pays 50%), plus a few hundred for stamp duty, that is split 50/50.

negotiable - no, but that doesnt stop you from trying

[PDLM]

The problem with this arrangement is that the agent is more acting on behalf of the landlord than the tenant because they are incentivised to keep the rent as high as possible (the higher the rent the higher their commission). So I have in the past done a deal with the agent where I agreed to give them more from negotiating a lower rent.

e.g. if the asking price was 100,000 then the agent would expect 50,000 from each of the landlord and the tenant. I did a deal with the agent that said for every 1000 dollars you reduce the monthly rent I will give you 2000 dollars extra. So if the deal was closed at 90,000 landlord would pay 45,000 but I would pay 70,000. The agent is happy because they are 15,000 better off. I am happy because over a 12 month contract I am 100,000 better off (with payback on this deal with the agent in 2 months).

[Traffic]

Thanks all. I hope at least to save on the "Gweilo bonus"