Common Agent Commission for Rentals in Singapore Explained Mistakes usually come from one thing: tenants and landlords not understanding that rental agent fees in Singapore are not fixed by law, only guided by market norms and recent SEAA best practices.
If you know who should pay what, when, and for which service, you can avoid disputes, overpaying, or being pressured into unfair terms – and that’s exactly what this Homejourney guide is designed to do.
This cluster article focuses specifically on agent commission for rentals and the most common mistakes tenants and landlords make, and it links back to our broader rental cost and rights pillar content on Homejourney for full context.
How Rental Agent Commission Works in Singapore (Quick Summary)
In Singapore, there is no legally fixed property agent commission; commissions are fully negotiable and should be agreed in writing between you and the agent.[5][1]
For rentals, the common market practice (not law) is:
- 1-year lease: about half a month’s rent as commission.
- 2-year lease: about one month’s rent as commission.[1][5]
- Historically, landlords often paid this to the landlord agent; tenant agent commissions were sometimes covered via co-broking.
However, with new SEAA Best Practice Guidelines (from July 2024), each party is now encouraged to pay their own agent – landlord pays landlord’s agent; tenant pays tenant’s agent – especially for units under about S$6,000 monthly rent.[2]
Homejourney’s approach is to make these expectations transparent upfront in listings and agent profiles, so you know exactly what rental agent fee or tenant/landlord agent fee you’re agreeing to before you commit.
Singapore Legal & Regulatory Context for Agent Commission
Unlike rent or deposits, agent commission is not directly set out in the Stamp Duties Act, HDB rules or URA regulations.
Instead, it sits within:
- Common law & contract: Whatever you agree in the written Estate Agency Agreement and Tenancy Agreement (TA).
- CEA regulations: Agents must use prescribed agency agreements and make commission terms clear to their clients.
- SEAA Best Practice Guidelines (2024): Recommends each party pays their own agent and promotes fee transparency for rental transactions.[2]
For overall rental costs and rights (stamp duty, deposits, repair responsibilities, etc.), refer to our main pillar guide on tenant rights and costs in Singapore on Homejourney and our in-depth cost breakdown in Tenant Rights Singapore 2026: Complete Cost Guide | Homejourney .
Common Mistake #1: Assuming Agent Commission Is Fixed or “Government Standard”
The biggest misunderstanding around property agent commission is thinking there is a standard government rate.
In reality, the Council for Estate Agencies (CEA) has confirmed that commissions are negotiable and not regulated by law.[5]
Market norms exist – for example, one month’s rent for a 2-year lease and half a month for a 1-year lease – but these are customs, not rules.[1][5]
How to avoid this mistake
- Always ask the agent to state the exact commission amount, who pays, and when in the estate agency agreement before any viewing or offer.
- Clarify whether commission is inclusive or exclusive of GST (currently 9%).[5]
- On Homejourney, check the agent profile and listing details – we encourage agents to disclose typical rental agent fee structures upfront.
Common Mistake #2: Not Knowing Who Should Pay – Tenant Agent Fee vs Landlord Agent Fee
In practice, who pays commission in Singapore rental deals has always been more about market practice and negotiation than strict law.
Typical patterns many locals follow:
- For lower to mid-range rents (historically around S$3,000–S$4,000), tenants may pay a tenant’s agent fee of around half to one month’s rent, especially for short leases.[3]
- For higher rents (traditionally above S$4,000 or S$3,500–S$6,000 depending on source), landlords were more likely to cover the full commission, sometimes shared with the tenant’s agent through co-broking.[1][3]
With the 2024 SEAA guideline, the direction is now clearer: each party should pay the agent that represents them.[2]
Practical example (local insight)
In mature estates like Bishan or Tiong Bahru, where a 2-bedroom condo can easily rent for S$4,500–S$6,000, it’s increasingly common for expat tenants who insist on having their own dedicated agent to pay a tenant agent fee directly, rather than relying on co-broking.
Meanwhile, in heartland HDB towns like Sengkang or Punggol, where a 4-room HDB might rent around S$2,800–S$3,400, it is still common to see tenants paying half a month’s rent as commission for a one-year lease.
How to avoid this mistake
- Clarify upfront: “Are you representing me, or the other party?” and “If you represent me, what is your commission?”.
- Never assume landlord will cover your tenant agent fee just because the rent is “high”.
- Record the agreed structure clearly in writing – both in the estate agency agreement and Tenancy Agreement.
- Use Homejourney’s agent directory to shortlist agents who explicitly state their commission practices and who they represent.
Common Mistake #3: Double-Paying Commission or Paying the Wrong Party
Another frequent issue is tenants or landlords accidentally paying commission to someone who is not their agent – or in the worst case, paying both the landlord’s and tenant’s agents.
Under CEA’s rules, an agent should represent only one side in a rental transaction to avoid conflicts of interest.
Red flags to watch out for
- An agent says they “represent both sides” but still asks you to pay full commission, without reducing or disclosing conflict.
- You are asked to pay a “marketing fee” to a landlord’s agent even though you already engaged your own tenant’s agent.
- Commission is demanded in cash with no invoice or documented agreement.
Safe steps to take
- Before viewing, confirm in text or email: “You are acting for me as my tenant/landlord agent.”
- Sign the Estate Agency Agreement (CEA-prescribed form) that clearly states commission amount and who pays.
- Pay commission only after the Tenancy Agreement is signed and the first rent / deposit have been safely handled.
- Insist on a receipt with GST breakdown where applicable.
Homejourney emphasises verified agents, clear profiles and transparent communication, helping you avoid this very common and costly mistake.
Common Mistake #4: Ignoring Lease Length and How It Affects Commission
Most norms in Singapore link the property agent commission to lease length rather than a flat amount.
Typical patterns include:
- 1-year lease: about 0.5 month rent as commission.
- 2-year lease: about 1 month rent as commission.[1][3][5]
- Less than 1 year: often still around 0.5 month rent, despite shorter term.[3]
