Buyers are usually advised to engage a real estate agent when looking for a house to buy, but is an agent really necessary for someone looking for a rental?

Renting a home seems nowhere near as complicated as buying. Once you’ve chosen a rental unit in a location you love with all the amenities you want, you reach out to the owner or their agent and set up a viewing. If it’s all you hoped it would be, you then sign the tenancy agreement, abide by the terms, pay your rent on time, and take care of the property. That seems easy enough.

On the other hand, are you sure you’re not setting yourself up for problems down the road by not having an agent help you with this?

Is an agent necessary for me to find a rental home?

It may not be absolutely necessary, however an experienced real estate agent who knows the ins and outs of rental transactions would certainly be a big help. If you engage a reputable agent, he/she will alert you to details you might otherwise miss. These could be in the homes you’re looking at, or more importantly in the tenancy agreement that you and your landlord draw up.

A good agent will not only provide guidance in dealing with owners, he/she will also suggest properties based on his/her expertise, your preferred neighbourhood, budget and needs. He/she will also set up viewings, negotiate with landlords or their agents on your behalf, explain the documents to you before you sign, including the tenancy agreement, and help get the tenancy agreement e-stamped with the Inland Revenue Authority of Singapore (IRAS).

If you are looking to rent an HDB flat, it’s important that you understand the rules and regulations governing HDB rentals. One of them is that owners are not allowed to rent out their flats unless they have already lived there for at least five years. Also, at least one of the rental unit’s owners must be a Singapore Citizen since Singapore Permanent Residents are not allowed to rent out their entire flat, even though they are allowed to own.

There are situations in which the flat owner will lock a room claiming it is for their own use, while renting out the entire flat without HDB’s approval. Furthermore, there is a non-citizen quota (NC Quota) that must be complied with to prevent enclaves of foreigners from forming in public housing estates. These apply to tenants renting entire flats if they are non-Malaysian Singapore Permanent Residents or other types of foreigners. Malaysians are not subject to the NC Quota due to how similar their history and culture are to Singaporeans.

An agent by your side would ensure that your tenancy has obtained approval from HDB. This way you would not be at risk of having to vacate the unit on short notice if it is found that the flat owner illegally rented out their unit because they never got HDB’s prior approval.

When an agent is working on your behalf, he/she can keep you from being scammed by an unregistered individual getting you to pay a deposit and even rent on a unit they don’t even own, leaving you high and dry after disappearing with your money. Your agent would verify the rightful owner of the property, which would ensure that the security deposit and rent are being paid to the actual owner.

Additionally, if your agent has been in the industry for years, no doubt he/she has acquired a network of contacts in related businesses that he/she can refer you to. So, if you need a reputable moving company, air-conditioning servicing vendors and/or cleaner you can turn to your agent for recommendations. This is especially helpful if you are a first-time renter. 

How do I select a reputable agent for help in finding a rental home?

To play it safe when engage a real estate agent, check that their registration with the Council of Estate Agents is active and valid up to date. CEA is the authority in charge of regulating real estate agencies and their agents in Singapore. Anyone not currently registered cannot legally work as a property agent.

An agent with a current registration will have no problem showing you their Estate Agent Card with their name, registration number, current picture and the name and license number of the agency they work for. Use this information when keying into the Council’s Public Register to look at the status of this particular agent.

Do agents charge a commission to renters?

When you engage a property agent to help find you a rental and secure the deal, you must agree ahead of time on the commission.

Agents who work with tenants may receive a co-broking fee from the property owner’s agent. This is usually the case when it’s for a two-year tenancy period, and the rent is over $4,000 per month. In a case like this the tenant would not be expected to pay a commission.

On the other hand, if the tenancy period is for one year, and/or the rent is less than $4,000 a month, the agent representing you (the tenant) may ask you for payment. So, before engaging an agent you should discuss this and come to an agreement.

Some tenants actually prefer directly paying their agents a commission as this can potentially prevent a conflict of interest.

Also, you need to know that if you’re paying your agent a commission, he/she is not allowed to also get a co-broking fee from the owner’s agent. This violates the “dual representation” rule in which it’s unlawful for a property agent to represent and/or be paid by both parties in a given transaction.

Your agent’s commission will be directly paid to the agency they work for, not to him/her. For more details on hiring a real estate agent you can go online to the CEA’s Consumer Advice on Engaging a Property Agent in Residential Rental Transactions.

What should I know if I decide to forego the help of an agent?

If you’ve been through the rental process before, you may decide that you don’t need a real estate agent. If you can do everything on your own it would not only save you time looking for a good agent, but also save you having to pay them a commission.

In this case you wouldn’t have anyone helping you, so you’d need to be extremely careful to avoid overlooking important details. When viewing properties that you’re interested in, look for any possible defects. We recommend walking through the property two or even three times, with each visit scheduled for a different time of day. This way you can get a good idea of what it would feel like living there.

Before you sign the tenancy agreement, read it thoroughly looking for anything that seems unfair in the terms. Also, look for caveats and possible loopholes to ensure that your needs are covered. You need to be clear-eyed about what you are agreeing to. For more information on tenancy agreement, you can our article on Seven (7) Clauses in Tenancy Agreement That You Should Pay Close Attention To.

On move-in day, you should thoroughly inspect the premises before unloading your belongings. Take photos of any defects or damage you notice on walls, flooring, furniture, fittings, and/or fixtures. This will help avoid disagreements over normal wear and tear when your tenancy ends.

It is your decision as to whether you engage an agent or not. We certainly recommend doing so if you are a first-time renter or have had problems in the past. This is less important if you have successfully rented before and are sure that you can properly navigate the process without help.

Disclaimer: The information provided in this article does not constitute legal advice. We recommend that you get the specific legal advice you need from an experienced attorney prior to taking any legal action. While we try our best to make sure that the information provided on our website is accurate, you take a risk by relying on it.

At Pinnacle Estate Agency, we strongly believe in sharing our real estate knowledge to the public.⁠ For more content like this article, check out our Singapore Property Guides.