Common Rental Agent Commission Mistakes in Singapore | Homejourney

The Common Agent Commission for Rentals in Singapore Explained Mistakes usually come down to one thing: tenants and landlords not clarifying who pays which rental agent fee, how much is payable, and when it is due, before they commit to a lease.

In Singapore, there is no government-fixed property agent commission for rentals – all agent commission rental amounts are negotiable and should be clearly stated in the estate agency agreement and tenancy documents.[1][3] Yet many people still rely on hearsay or outdated “market practice”, which leads to disputes, overpayment, or even broken relationships just before key handover.

This cluster article zooms in on the most common mistakes around property agent commission for rentals, and how to avoid them as a tenant, landlord, or investor. For a full overview of norms, scenarios, and calculations, refer to the main pillar-style guides: Agent Commission for Rentals in Singapore Explained | Homejourney and the cost guide Agent Commission for Rentals in Singapore: Homejourney Cost Guide 2026 .

Quick Reference: What Is “Normal” Rental Agent Commission in Singapore?

Before we break down mistakes, it helps to remember the typical property agent commission benchmarks in Singapore today.

No fixed legal rates: Commission is fully negotiable between client and agent; there is no law that sets a fixed rate.[1][3][5]
Common market norm: Roughly ½ month’s rent per year of lease (e.g. ½ month for 1 year, 1 month for 2 years).[1][3]
Typical pattern: 1 month’s rent for a 2-year lease, ½ month for a 1-year lease, subject to negotiation and deal size.[1][2][3]
Who pays: Historically usually the landlord, but from 2024, best-practice guidelines encourage each party to pay their own agent, especially below S$6,000 monthly rent.[1][3]

Where this clashes with expectations is exactly where many of the common agent commission mistakes arise.

Mistake 1: Assuming There Is a Fixed Legal Agent Commission

Many first-time renters and new landlords in Singapore still believe there is a “CEA-approved rate” or a legally fixed rental agent fee. There is not.

According to industry practice and CEA guidance, commissions are negotiable and must be captured in the estate agency agreement between the agent and client.[1][3][5] The familiar “½ month or 1 month” norms are just that – norms, not mandatory rules.

Why this mistake is costly

Tenants may accept a higher tenant agent fee thinking it is “standard” when it is actually negotiable.
Landlords may under-budget, assuming a fixed ½ month fee, only to realise they agreed to 1 month’s commission in a tight market.
Disputes arise when one party insists “the law says…” when it is only market practice.

How to avoid it

Ask your agent to spell out the exact commission rate and amount in writing before you start viewings.
Check that the commission clause is clearly reflected in the estate agency agreement, not just mentioned over WhatsApp.
Use Homejourney’s transparent breakdowns in our rental guides Agent Commission for Rentals in Singapore: Homejourney’s Transparent Guide to benchmark what is fair for your situation.

Mistake 2: Not Clarifying Who Pays Which Agent

The biggest source of conflict today is who pays the landlord agent fee and who pays the tenant agent fee. This has become even more important since 2024.

The Singapore Estate Agents Association (SEAA) introduced a best-practice guideline from 1 July 2024 recommending that agents should collect commission only from the party they represent – landlord agents from landlords, tenant agents from tenants.[3] This is not law, but it is reshaping expectations, especially for units below S$6,000/month.[1][3]

Common real-life confusion

Examples Homejourney frequently sees across estates like Sengkang, Punggol, Jurong East, and city-fringe condos in Queenstown:

A tenant renting a 4-room HDB in Punggol for S$3,000/month assumes “landlord pays all commission”, but the tenant’s agent expects 1 month from the tenant for a 2-year lease.[1][3]
A landlord of a S$4,500/month condo near Queenstown MRT believes their agent will share commission with the tenant’s agent, but under new practice, each party expects their own client to pay.[1][3]

How to clarify early

Ask at the first viewing: “Who will be paying your commission – me or the other party?”
Confirm the amount: For example, “If I sign a 2-year lease at S$3,000, what exactly is my commission payable?”
Get it in writing: Ensure the estate agency agreement clearly spells out your responsibility as tenant or landlord.
Check for double-charging: Your agent should not be collecting commission from both sides without full disclosure, as this raises conflict-of-interest concerns.

On Homejourney’s rental listings, we encourage agents to disclose their commission expectations upfront so users can budget correctly and avoid last-minute surprises when issuing the Letter of Intent (LOI). Use Property Search to find rental listings and review agent notes carefully.

Mistake 3: Ignoring How Lease Length Affects Commission

Another common mistake is not realising that lease length directly affects the rental agent fee. Market norms are usually quoted “per year”, and then rounded to common numbers.[1][3][4]

Typical patterns

1-year lease: ~½ month’s rent commission
2-year lease: ~1 month’s rent commission
Short-term leases (<1 year): often still treated as ½ month’s rent, but very negotiable and case-specific.[4]

In practice, I’ve seen landlords in estates like Yishun and Ang Mo Kio negotiate lower commissions (e.g. ⅓ month) when a good tenant is found quickly, while some central-region landlords accept 1 month’s commission even for a 1-year corporate lease when the deal is more complex.

How to protect yourself

Always ask if the commission quoted is per year of lease or for the whole contract.
If you are negotiating a 1+1 lease (1 year fixed + 1 year option to renew), clarify whether the second year attracts a fresh commission or not.
Record any special terms (e.g. discounted commission if tenant renews) in writing.

Mistake 4: Confusing Deposit, Stamp Duty, and Commission

First-time renters often underestimate cash outlay because they combine or confuse three different costs at signing:

Security deposit – typically 1 month’s rent per year of lease (negotiable).
Advance rent – usually the first month’s rent upfront.
Stamp duty – payable to IRAS for leases of 1 year or more (commonly 0.4% of total rent for the period).[Stamp Duties Act; IRAS guidance]
Agent commission – your negotiated tenant agent fee or landlord agent fee.

I often meet expats renting in areas like River Valley or Tanjong Rhu who plan for two months’ rent upfront, only to realise that commission and stamp duty push the initial cash outlay much higher.

Simple budgeting example

For a 2-year HDB lease in Tampines at S$2,800/month, with a 1 month commission to your tenant’s agent and 2 months’ deposit:

Deposit: S$5,600 (2 months)
First month’s rent: S$2,800
Commission (1 month): S$2,800
Stamp duty (approx.): 0.4% × (S$2,800 × 24) ≈ S$268

Total upfront cash is just under S$11,500 – significantly more than the “two months’ rent” many tenants have in mind.

Homejourney’s rental calculators and guides help you work out this full cash picture before you commit. For landlords and investors planning cash flow or leveraging financing, you can also benchmark your loan costs via Bank Rates .

Mistake 5: Not Having a Written Agreement on Commission

While Singapore tenancy law does not require written agreements by statute, having everything in writing is strongly recommended under common law principles, and crucial for safe transactions.

For commissions, the estate agency agreement between client and agent should clearly set out:

Commission rate (e.g. ½ month’s rent)
Basis of calculation (per year or per contract)
Who pays (landlord or tenant)
When it is payable (usually upon signing of tenancy agreement)
What happens on early termination or no-deal

Without this, I’ve seen disputes at the Small Claims Tribunals where agents and clients disagree on whether commission is payable when tenants pull out at LOI stage.

Practical steps

Never rely on verbal agreements or informal chat messages alone.
Ask your agent to use the standard forms recommended by CEA and document any variations clearly.[3][5]
Keep copies of all signed documents and key WhatsApp confirmations.

Mistake 6: Overlooking Conflicts of Interest and Dual Representation

Another frequent mistake is not paying attention to who your agent actually represents. Traditionally, some landlord agents also “helped” tenants without formally being their tenant agent, while only collecting commission from the landlord.

Regulators now discourage such dual-agency-like arrangements because they can create conflicts of interest. Best practice is that the agent represents only one party in a rental transaction and collects commission only from that party.[3]

Red flags to look out for

An agent says, “I’m helping both of you, don’t worry,” but does not clarify whom they officially represent.
The same agent expects fees from both landlord and tenant without full written disclosure.
Pressure to accept terms “for fairness to both sides” that mainly benefit the other party.

On Homejourney, we emphasise clear representation and transparent disclosure. When you connect with agents via , you can confirm upfront who they act for and how they are paid.

Mistake 7: Forgetting That HDB and Private Rentals Can Differ

While the core agent commission rental logic is similar for HDB and private properties, there are some real-world differences:

HDB rentals: More standardised rent levels, and many agents still follow traditional patterns where landlords pay commission for 2-year leases, especially in mature estates.[1][4]
Private condos: More variation, especially for high-rent units above S$6,000, where commissions can be negotiated down or structured differently between landlord and tenant agents.[2][3]
Rooms vs whole units: For room rentals in areas like Jurong West or Woodlands, commission is often a flat ½–1 month, but who pays can vary widely.[1][3]

On top of this, HDB subletting rules (e.g. minimum occupation period, non-citizen quota) add complexity for landlords, so engaging a competent agent and documenting commission properly is even more important.

For investors comparing different projects and rental yields, use Projects Directory to understand typical rents and demand before agreeing to commission structures that eat into your yield.

Mistake 8: Paying Commission for Services You Never Received

Some tenants and landlords agree to pay a full property agent commission even when the agent’s actual service is minimal – for example, when the tenant already found the listing online and the agent merely forwarded the landlord’s contact.

In a professional rental transaction, agents should provide value such as:

Market pricing advice and marketing (for landlords)
Property sourcing and shortlist curation (for tenants)
Negotiating rental, clauses, and repairs
Preparing LOI and tenancy agreement, and explaining key terms
Coordinating handover, inventory, and defect checks

If you did most of the work yourself, you may wish to negotiate a different fee structure upfront. Homejourney’s guides like Rental Agent Commission in Singapore: Common Mistakes Explained | Homejourney explain what a fair service scope looks like for the commission paid.