[britcoolcat]

Hi,

I am moving to HK next week and have been looking around for flats, and the costs involved, can anyone help explain how an agent will charge you for finding a place, why you have to pay stamp duty to rent? If for example your rent was $30,000pcm what would you expect to pay up front even before you get the keys?

Also is it a rental market and how much room is there for negotiating?

Any assistance would be appreciated
Britcoolcat!

[PDLM]

Normally the agent takes half a month's rent from the tenant and half from the landlord. You can try to negotiate.

You normally also need to pay one month deposit and one month rent up front. There's always room to negotiate, but it's an odd situation where the agent is disincented to get the rate down. You may want to agree a fixed fee with the agent or even one which goes up if the rent goes down.

Stamp duty, just because that's a tax here (but it's a trivial amount of money).

[wtbhotia]

usually its 2 months deposit, 1 months advance and 1/2 month commision to the agent. the stamp duty is usually paid by the owner of the flat. If they are pushing this onto you then they are being really cheeky. I have never had to pay stamp duty regardless how little amount of money is involved and i have been renting for 10 years +

[britcoolcat]

Thanks guys, so the next question would be about secuirty depoits, do they differ from your first month/plus one months deposit?

I have been tole by one agent that I may have to pay out at least 3/4 months to some landlords, and that is held by them, without interest? Is that money not held by an interpendant party, say a lawyer, who then will only release it once both parties agree?

[larac]

Never heard of that. 2mths deposit, 1 mth in advance, 1/2 month commission is standard with the big agencies. We refused to pay stamp duty on our current place and had no problem getting this.

[carang]

in all the leases i've ever signed here...let's see, that would be 8 leases now...

i've had to pay 2 months deposit, 1 month advance rent and 1/2 month for agent (if an agent was used). i have also always shared the cost of stamp duty (only a couple of hundred $$$HKD)...back when SARS was happening, i got away with not paying 1/2 month agen fees by negotiating it down to 1/4 month rent.


i have on occassion paid a "security" deposit to an agency in advance of signing the actual agreement, but it was only handed over once the preliminary agreement was signed. i have not always signed a prelim. the lease i signed yesterday was a standard lease, no prelim at all....so i paid the deposit & 1st month rent at that time.