Rental questions

[qms]

MMM,


Something major slipped my mind.

I suppose your monthly rent is more than $2,500, right? No wonder the tenant insisted on going through the agent. The landlord pays for the commission for any rent that is more than $2,500. Hence, to the tenant, they don’t incur any cost at all.

So, under this circumstance, perhaps you would like to talk to the tenant, and see if they are willing to bypass the agent? If they insist on going through an agent, and you are keen to keep the tenant, appoint your aunt as the agent.

The tenant’s agent supposedly has a share in any renewal. So, if you appoint your aunt, the task now is for your aunt to negotiate with the tenant’s agent on the split of the commission.

[MMM]

qms:

MMM,


Something major slipped my mind.

I suppose your monthly rent is more than $2,500, right? No wonder the tenant insisted on going through the agent. The landlord pays for the commission for any rent that is more than $2,500. Hence, to the tenant, they don't incur any cost at all.

So, under this circumstance, perhaps you would like to talk to the tenant, and see if they are willing to bypass the agent? If they insist on going through an agent, and you are keen to keep the tenant, appoint your aunt as the agent.

The tenant's agent supposedly has a share in any renewal. So, if you appoint your aunt, the task now is for your aunt to negotiate with the tenant's agent on the split of the commission.

Yes, it's above $2500. Now that you mentioned I recall this rule when we were renting out. So if they insist on agent, then probably it's still best to get my aunt involved and they talk between themselves. Unless of course the agent is willing to do the work at 50% the supposed commission?

[qms]

MMM:

Yes, it's above $2500. Now that you mentioned I recall this rule when we were renting out. So if they insist on agent, then probably it's still best to get my aunt involved and they talk between themselves. Unless of course the agent is willing to do the work at 50% the supposed commission?

Yes, looks like this is the way out.

Anyway, it was mentioned before that you could claim the commission against the rental income when you file for your income tax.

Good Luck! :celebrate:

[MMM]

qms:

Anyway, it was mentioned before that you could claim the commission against the rental income when you file for your income tax.


Good Luck! :celebrate:

But the financial impact of tax deduction is not as beneficial as eliminating agent fees.

Eg. 15% on 1.5k commission is $225. This is versus paying $1500 on the agent fee. Just an illustration.

[qms]

MMM:

But the financial impact of tax deduction is not as beneficial as eliminating agent fees.


Eg. 15% on 1.5k commission is $225. This is versus paying $1500 on the agent fee. Just an illustration.

Well, that's life, right? You win some, you lose some.

Without this expenditure, you won't be able to get your unit rented out, and you won't be able to take in the rental income then.

[hquek]

MMM:

But the financial impact of tax deduction is not as beneficial as eliminating agent fees.

Definitely true, but consider work of an agent. Put in advertisements, try to connect tenant to unit, do the leg work, communication work. If the deal doesn't work out, they don't get paid.

Unless you find your own tenant, otherwise I'm fairly sure that any existing agreement should have a clause that make sure you pay up if the tenant they find for you continues.

[MMM]

Yah… I suppose if this is something that cannot be avoided. Then at least it is claimable.

[Busymom]

hquek:

Unless you find your own tenant, otherwise I'm fairly sure that any existing agreement should have a clause that make sure you pay up if the tenant they find for you continues.

Most would have such a clause. Some agents would also \"remember\" and they will start calling you once your tenancy agreement is almost up for renewal.

[MMM]

hquek:

Unless you find your own tenant, otherwise I'm fairly sure that any existing agreement should have a clause that make sure you pay up if the tenant they find for you continues.

But in the case of a lease extension. They have done nothing except maybe helping with the paper work.... So that don't justify such a fee.

[hquek]

MMM:

hquek:

Unless you find your own tenant, otherwise I'm fairly sure that any existing agreement should have a clause that make sure you pay up if the tenant they find for you continues.

But in the case of a lease extension. They have done nothing except maybe helping with the paper work.... So that don't justify such a fee.

Understand but I recall the term I signed on last year. If continue, I have to pay. I work my agent more, so I didn't think so hard on the fee.