How much is the rental broker fee when renting an apartment is a topic of interest to many people before signing an apartment rental contract. Tuong Phat Land wants to share this information so that you have a more realistic view of brokerage fees, who pays the fee and whether there are any regulations related to this issue. Let’s find out the details in today’s article!
1. What are brokerage fees in real estate?
Many people have asked me how much is the rental broker fee when renting an apartment to have a reasonable financial plan, especially those who are renting a house for the first time. Therefore, I will share full information about brokerage fees in this article. First of all, the brokerage fee is an amount of money that the broker and the other party agree on and is paid after the rental contract is signed, equivalent to completing the connecting role.
Brokerage fees include two main components: commission and remuneration, specifically as follows:
- Commission: Brokerage commission is the fee incurred when the transaction between the apartment lessor and the apartment tenant is successful. This fee is determined based on a percentage of the contract value. According to my personal experience, the commission will be equal to 1 month’s apartment rent.
- Remuneration: Brokerage fee is a default amount, regardless of whether the contract is signed or not, the broker will still be paid this amount. We can simply understand that remuneration is like labor wages, especially in cases where there are many requests when consigning an apartment for rent.
However, in Vietnam in general and in Ho Chi Minh City in particular, brokerage units only charge commission and remuneration is free for all parties. In short, when renting an apartment, you should clearly agree from the beginning on the brokerage fee as well as how much is the rental broker fee to avoid unnecessary troubles later.
2. How much is the rental broker fee?
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2.1. How much is the brokerage fee when renting an apartment?
How much is the rental broker fee when the transaction takes place in Ho Chi Minh City? In fact, the brokerage fee does not have a fixed number for all cases, each different type of real estate will have a different brokerage fee.
How much is the rental broker fee? Here are 3 cases:
- 6 month contract: 50% of 1 month’s rent
- 12 month contract: 100% of 1 month’s rent
- 24 month contract: 150% of 1 month’s rent
Office:
- 12-month contract: 50% of 1 month’s rent
- >=24-month contract: 100% of 1 month’s rent (applicable for 36 and 60 months)
Residential townhouse:
- 12-month contract: 50% of 1 month’s rent
- >=24-month contract: 100% of 1 month’s rent
Villas and commercial townhouses will be charged 100% of 1 month’s rent (applicable for 36 months, 60 months, >60 months) with contract type >=24 months.
2.2. Suggestions on how to calculate brokerage fees when renting an apartment
After knowing “how much is the rental broker fee” when renting an apartment, the next step is to learn how to calculate the fee to ensure a smooth transaction. Brokerage fees are usually added to the listed rental price and applied according to the apartment rental period. To clarify this issue, Tuong Phat Land gives an example to help you visualize better:
- The apartment rental contract is 12 months.
- Price (actual price, excluding fees): 25,000,000 VND
- Brokerage fee is 1 month, equivalent to: 25,000,000/12 = 2,083,333 VND/month
- Price to be announced to customers: 25,000,000 + 2,083,333 = 27,083,333 VND/month
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3. Who decides how much the brokerage fee is when renting an apartment?
Currently, there is no legal document regulating the fees for brokers, but it will be formed based on the reputation of the broker, the agreement and the general fee level in the market. In most cases, the party that needs to find the service will be the one to set the fee and pay for that brokerage fee. In some other cases, the brokerage unit with high reputation and reliability in the market has the right to set a price to suggest to customers.
4. Is the deposit a brokerage fee?
After learning how much is the rental broker fee, another question that many of my customers are also interested in is whether the brokerage fee and the deposit are related to each other. The answer is no. The deposit and the fee paid to the broker are two completely different items, so don’t confuse them!
To help you understand better, Tuong Phat Land will analyze these two types of money again:
- As analyzed above, we summarize that the brokerage fee is the money that the party who needs to rent or lease pays to the brokerage unit. Depending on the agreement, we will determine how much is the rental broker fee.
- The deposit is the amount of money that the apartment tenant is required to pay to the landlord according to the contract. The deposit amount is also calculated according to the number of months of renting the apartment (0.5 months, 1 month or 2 months). In the real estate sector in particular and in transactions in general, the deposit is intended to build trust and will be refunded after the end of the contract.
However, why are there still many people who are confused and do not know the deposit and how much is the rental broker fee? At that time, the landlord will take the tenant’s deposit to pay the brokerage fee and cause many arguments with the tenant. You may see this as unusual but it is common in the market. In short, please find out about this issue before signing the lease!
In case the tenant pays the deposit through a broker, the broker must transfer that amount to the landlord. Clearly defining the fees will help the transaction go much more smoothly.
Be clear about your fees
How much is the rental broker fee has been clearly stated in this article. Tuong Phat Land hopes that you have gained useful information to keep in mind and have smooth real estate transactions in the future. If you have any questions, do not hesitate to contact us for further discussion!
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