Agent Commission for Rentals in Singapore Explained Alternatives means understanding how the typical property agent commission works for rentals in Singapore, and what safer, cost-effective options tenants and landlords can use instead of (or alongside) the standard model.
In Singapore, rental agent commission is not fixed by law and is fully negotiable, but market norms have developed around half to one month of rent, often tied to lease length.[1][5] For Homejourney users, knowing these norms – and the alternatives – is key to protecting your budget and your rights.
How Rental Agent Commission Usually Works in Singapore
For most private property rentals in Singapore, the market norm is:
- About 0.5 month’s rent for a 1‑year lease
- About 1 month’s rent for a 2‑year lease[1][5]
These figures are common but not legally mandated. The Council for Estate Agencies (CEA) states that commission is negotiated between the client and agent and should be recorded clearly in the prescribed estate agency agreement forms.[5]
In practice, you often see arrangements like:
- Landlord agent fee (landlord agent commission): Around half a month’s rent per year of lease, usually paid by the landlord.[1][3][5]
- Tenant agent fee (tenant agent commission): Frequently 0.5–1 month’s rent when the tenant engages their own agent, especially for mid- to higher-rent units.[5]
- Co-broking: Landlord’s and tenant’s agents share a combined commission that is often equivalent to ~0.5–1 month’s rent for a 1–2 year lease.[1][5]
Homejourney’s own 2026 cost guide shows that for many tenants, a half‑month rental agent fee (about S$1,250–S$5,000 depending on rent) is still common, usually on top of stamp duty and security deposit.[4] This is why understanding alternatives is so important.
Legal and Regulatory Context for Agent Commission in Singapore
Singapore does not have fixed or regulated property agent commission rates; all fees are based on agreement between you and the agent.[1][5] However, several key frameworks shape how rental agent commission operates:
- CEA Regulations & Codes: Estate agents and salespersons must be licensed and abide by CEA’s Code of Ethics and Professional Client Care, including disclosure of any commissions and avoiding conflicts of interest.
- Stamp Duties Act: For leases of 1 year or more, stamp duty is typically 0.4% of the total rent for the lease term, usually paid shortly after signing the tenancy agreement. IRAS administers this.[4]
- Common law tenancy principles: Rights and obligations are mostly set by the tenancy agreement (TA) and common law—there is no dedicated tenant-protection statute.
- HDB subletting rules: For HDB rentals, landlords must comply with HDB eligibility, flat-type limits, and minimum occupation rules. Tenants should verify the landlord’s right to sublet via HDB’s e-services.
- Dispute resolution: Rental disputes (including commission disagreements if linked to tenancy) under S$20,000 can often be escalated to the Small Claims Tribunals, and community disputes may go to the Community Mediation Centre.
Newer industry guidelines also encourage clearer alignment of commission with the party represented. For example, SEAA guidelines suggest landlord’s agents should be paid by landlords and tenant’s agents by tenants for greater transparency.[2] While not law, these guidelines influence negotiation norms on the ground.
Who Pays Rental Agent Commission – Tenants vs Landlords
Because this topic is often confusing, here is a simplified view of the market norm (not a legal rule):
- If only the landlord has an agent
Around half a month’s rent per year is paid by the landlord to their agent.[1][3] Some landlords of higher-rent units (e.g., a S$6,000/month condo in River Valley) may still try to push some fees onto tenants, so check your agreement. - If both landlord and tenant have agents
The combined commission is commonly equivalent to 0.5–1 month’s rent per year of lease, shared between agents. Who pays which portion is negotiable, but newer norms are shifting towards each party paying their own agent.[2][5] - When tenants pay a tenant agent fee
Tenants often pay around 0.5–1 month’s rent when they specifically engage an agent to search, arrange viewings, and negotiate, particularly in tight markets or for rents under S$6,000/month.[2][5]
On the ground, if you are renting a 2-bedroom condo in areas like Tanjong Rhu or Buona Vista around S$3,500/month, agents will often quote:
- Landlord agent fee: 1 month (for 2-year lease)
- Tenant agent fee: 0.5–1 month (negotiable, often borne by tenant)
Homejourney strongly recommends that both tenants and landlords insist on a written estate agency agreement specifying: commission amount, GST inclusion/exclusion, who pays, and when it is due.[5]
Alternatives to the Traditional Rental Agent Commission Model
Traditional commission is not your only choice. Below are practical, safer alternatives for both tenants and landlords, and when they make sense.
1. Fixed-Fee or Capped-Fee Arrangements
Instead of a percentage or “X months’ rent”, some landlords and tenants negotiate a fixed fee for clearly defined services. For example:
- Landlord pays S$1,500 flat to list, conduct viewings, draft TA, and complete handover for a 1-year lease in Punggol.
- Tenant pays a capped fee of S$1,000 for an agent to shortlist units, schedule 5–8 viewings, and review the TA.
This is particularly useful when rents are high. Paying a flat S$1,500 instead of half a month’s rent can be substantial savings on a S$7,000/month unit in Orchard or Sentosa.
How to do this safely with Homejourney:
- Shortlist units using Homejourney’s rental search Property Search .
- Contact an agent via and ask upfront if they are open to a fixed or capped fee instead of the usual half or full month’s rent.
- Ensure the fee and scope are written into the estate agency agreement before any work starts.
2. DIY Search + Limited-Scope Agent Service
Many experienced tenants in Singapore (especially repeat renters in areas like Bishan, Pasir Ris, or Jurong East) now prefer to:
- Search and shortlist properties themselves using Homejourney’s rental listings Property Search .
- Only engage an agent for technical tasks: price negotiation, TA review, and handover inspection.
In such cases, a reduced tenant agent fee or a fixed review fee is reasonable because the agent’s workload is smaller. This is a good compromise if you are comfortable with online searching but want professional backup on legal and negotiation issues.
3. Direct Landlord–Tenant Negotiation (No Agent)
Some tenants and landlords choose to transact directly to avoid any property agent commission. This is more common when:
- The landlord and tenant already know each other (e.g., referral from a colleague in your CBD office at Raffles Place).
- The rental is a room in a shared apartment, and the live-in landlord manages everything.
- The tenant is very familiar with Singapore rental practices and comfortable handling paperwork.
Safety checklist if you choose this route (no agent):
- Verify landlord ownership via official sources (e.g., using title information from SLA/URA where applicable).
- For HDB, ask for proof of HDB approval to sublet.
- Use a detailed TA: include rent, due dates, inventory list, maintenance responsibilities, diplomatic clause (for expats), and early termination terms.
- Pay via traceable methods (bank transfer) and insist on receipts.
- Ensure stamp duty is paid to IRAS on time.
