Using a R/E Agent (or not) and agent fees

Hi David,

I am a property owner in Malaysia and have been renting out my apartments since 2003 up until now. Yes the owner definitely pays the agency commission. If your agent tries to make you pay anything then your seriously should not be using him/her. The agency commission is commonly one months rental. If agent's work together they usually split the fee 50-50. But again, the owner always pays the agency commission. The owner may have listed his property with one agent or several agents. In Malaysia it is extremely common for agents to work together.

You can contact any of the agents on iproperty or property guru or star properties etc. Tell them the condo name and they will contact other agents who have units for rent there. Alternatively, pop into the management office and ask them since the management usually know some of the agents who might be living in the same condo or at least are specialized with units there. It really doesn't matter how this is done as far as agents go, just remember that the owner pays the agent for helping them to find a tenant.

Some other information:

- You need to pay a 2 months security deposit when you move in which is refundable at the end of the contract minus any damages you may have caused.
- You need to pay a half month's utilities deposit and any outstanding bills at the time your contract is up will be deducted from that deposit.
- Check that all aircons are working. If they are not then get the agent to ask owner to repair of replace or service them before you hand over any money.
- Check the water quality. Old condos may have used GI piping which becomes rusty giving reddish water. Newer condos were built using PVC piping which doesn't stain the water.
Check for leaks in the ceilings and if there are any ask that the owner fixes them before you move in.
-If the apartment is furnished, make sure the mattresses are decent. I, as an owner, would often replace the mattresses and pillows with each new tenant.
- Know that you are responsible to pay the electricity, water, internet and tv bills. The owner is responsible for paying the Assessment Bill (from DBKL) and also the sewerage bill. The owner also pays the Management or maintenance bills, quit rent, fire insurance etc.
- Home contents insurance is cheap in Malaysia so it's worth getting, and is available with most insurance companies. I used to insure my home contents for either Rm30k or Rm50k and pay just a few hundred ringgit.

Hi Shill88,

Wow, thank you so much for all the information!     It's very helpful.  I am relieved to hear that the owner still pays for the agency commission even if I use my own agent.  Great tip, by the way, regarding the mattress.  I was wondering about that.  I really appreciate you taking the time to respond to my questions and providing so much additional detail.  Thanks!

Kindest Regards,

David

You're welcome David. Yes it's always the owner/landlord who pays the commission to the agent, usually one month's rent or sometimes a bit less or a bit more.

By the way, always be cautious with property agents because they are often very tricky and read everything carefully before signing anything. Agents are only concerned with earning money. And I wouldn't part with any money until everything about the apartment is settled and in the Agreement.

You can also negotiate the rent because it's very much a renter's market with a large oversupply of available apartments. Owner's often prefer to have a reduced rent rather than leave their apartments empty earning them nothing while they might have to pay a mortgage to the bank.

Another thing, if you think you might stay longer than a year then ask the agent to include an extension clause in the Agreement where the rent remains the same. Also make sure that the clause that details the return of your security and utility deposits at the end of the Agreement is not longer than 7 days. Usually a landlord will need a bit of time to check the unit through and make sure all the bills have been paid. Providing proof that they have been paid may mean the deposits are returned faster.

One last thing, tenants are usually responsible for servicing the air-conditioners which is why you should make sure they are in good working order before you move in.

Hope it all goes well.

Great advice, Shill88.     This is really helpful especially since it will be my first time using an agent, negotiating the rent, and generally dealing with the Malaysian way in this situation.  I'm looking forward to it though!  Thank you again for taking the time to cover those important details when renting in KL.  I've copied and pasted your comments to my file.   

Best wishes,

David

I'll just add since you might not be clear, your agent knows all this and its up to him/her to go make their own deal with the owners agent. The problem is, the owners agent isnt under any obligation to share 50/50. By that I mean the owners agent may tell your agent that the owners agent may wait and find his own client, thereby not sharing. In a case like this, your agent might come back to you and ask you to pay and personally I wouldnt do that. However, if you have fallen in love with a place and dont care about money, yes go ahead and negotiate something with your agent. What Shill is talking about is that a buyer/renter isnt obligated to pay in the general course of this business and dont let an agent tell you otherwise because, for one reason, he might be double-dipping, not tell you, and to me thats unethical and a case of cheating.

One more thing. In this world, anyone can pay anyone for anything. If the seller/owner agent refuses to share with your agent, you can say this: I'll pay you 20% of a months rent because you found the  property for me and byebye; if you stick around and negotiate, draw up an agreement, go and get it stamped, work out repairs prior to move-in, blah blah blah, then Ok, pay i'll pay you more.

Before anything, work out on a piece of paper whatever obligations youve agreed to. Dont rely on oral agreements in matters like this, they wouldnt always turn out so well.

Hi,  So many beautiful apartments and great agents in KL..and like many on here I've lived everywhere around the world!  However there are also thousands of so called agents who are not!!  Do not do what you spoke of doing, asking a friend of a friend ...even the Bangla frying chicken wings in Changkat says he's an agent.  Just use the landlord's agent.  ***.  Large established agent, immediate and professional maintenance crew.. and all documents legal and above board. They have properties all over KL. Just ring and tell him where you like but also give him your requirements and let him suggest somewhere else. ***. Enjoy your new home. Jamie.

cvco wrote:

I'll just add since you might not be clear, your agent knows all this and its up to him/her to go make their own deal with the owners agent. The problem is, the owners agent isnt under any obligation to share 50/50. By that I mean the owners agent may tell your agent that the owners agent may wait and find his own client, thereby not sharing. In a case like this, your agent might come back to you and ask you to pay and personally I wouldnt do that. However, if you have fallen in love with a place and dont care about money, yes go ahead and negotiate something with your agent. What Shill is talking about is that a buyer/renter isnt obligated to pay in the general course of this business and dont let an agent tell you otherwise because, for one reason, he might be double-dipping, not tell you, and to me thats unethical and a case of cheating.

One more thing. In this world, anyone can pay anyone for anything. If the seller/owner agent refuses to share with your agent, you can say this: I'll pay you 20% of a months rent because you found the  property for me and byebye; if you stick around and negotiate, draw up an agreement, go and get it stamped, work out repairs prior to move-in, blah blah blah, then Ok, pay i'll pay you more.

Before anything, work out on a piece of paper whatever obligations youve agreed to. Dont rely on oral agreements in matters like this, they wouldnt always turn out so well.

Hello CVCO,

Thank you kindly for your comments.  Yes, I was wondering how my r/e agent (who I have emailed only once and haven't asked to do anything yet since I won't be moving to KL for many months) would go about this.  For example, I was wondering if he might somehow circumvent the owner's agent and contact the owner directly to get the whole commission.  Moreover, I was wondering how helpful my r/e agent would be when negotiating the monthly rental if it reduces his commission.  That said, I didn't realize how self-serving some agents can be so your comments are interesting and helpful.  I do want to save money and not reduce my opportunities to see a place especially since I am interested in one building in particular.  Therefore, as Shill suggested, perhaps I'll contact the management office directly and ask them to give me the name of an agent who might specialize in the building I'm looking at or at least has good experience showing properties there.

Thank you again for your advice. :-)

Best regards,

David