My real-estate agent has entered a separate agreement with my tenant even though at the same time there is already a rental agreement between me and my tenant. The agent also charge a higher rental fee but give a lower amount to me. He also charge me 1 month fee for tenancy renewal and at the same time charge the tenant RM500 for the same tenancy renewal. What is the normal practice? I think i've been cheated by the real-estate agent.

Hi....

Normally, in Johor, for tenancy renewal, we only charge the Landlord and the Tenant 1/2 month each of the monthly rental amount.

As for the other agreement with tenant and higher rental charges, normally, we don't do that.

Unless, like some landlord, who have to go oversea or have no time to collect rental or look after their house, then what we do is we offer to rent from the landlord at a lower rental and pay the landlord rentals every 3 months once - advance rental.

We undertake to maintain the property and we are given the freedom to rent it out at a higher price. We have to take the risk, in case the tenant did not pay. Owner do not have to worry. They just receive their rentals every 3 monthly, in advance. We do not get commission from owner but we earn higher monthly rental overiding. Win win situation.

Thank you.

Regards,
Mdm Koo

Hi Anuar,

As far as I am concern, there is only one agreement, ie Tenancy Agreement between Landlord and Tenant. By standard practice, the commission is 1 month for a tenancy period of 1 year. A higher commission of 1.25 to 1.5 months apply to tenancy period of 2 years and above, and the commission rate differs from one agency firm to another, and depends on the landlord's persuasion for a lower rate.

There is a separate charge where the tenant needs to pay. ie. to execute the tenancy agreeement and it is called Stamping Fee. The agency may also charge a separate fee for "preparation of tenancy agreement" and I believe the rate varies with each agency. It is pretty subjective.

Where as, for the tenant to pay RM500 for renewal, IMPO (In my personal opinion), I think this is not the norm. It is pretty common for renewal that landlord pays 1/2 month to 1 month, but I have never heard of tenants paying for renewal.


BTW, if your rented unit is RM1000, and the same amount is stated in the Tenancy Agreement, it shall not exceed this amount for rental chargeable to the tenant, on what was agreed at the first place. If RM1000 is collected on behalf of u, and RM900 is returned to you, the RM100 should be treated as an overiding commission to the agent, and you both should have a simple agreement on this.

Hope it helps.

Your concern is valid.

An option to renew according to the tenancy agreement is subject to whether the parties intend to continue renewing the tenancy Based on either on the agreed same rental or an increase in rent for the duration of following tenancy.

If there is an increase in rent, then, there will be further deposit collected towards the security deposit.

Example of renewing a one year tenancy with increase of rent of RM100.

For example, RM500 per month on 1st year.
Renew at increase to RM600 per month on 2nd year.
There will be a RM100 increase in rent.

If the tenancy agreement provides for 2 months security deposit, then, RM100 x 2 months = RM200 will be going to the security deposit.

In other words, on the 1st month of the renewed 2nd year, the total increase in rental + security deposit =
RM600 + RM200 = RM800. After that, the rental of RM600 will be collected until the expiry of the 2nd year.

This is the usual way how renewal of tenancy apply.