| OCTOBER 4, 1997. BREAK LEASE. This case study
may be useful to expatriate Tenants and new Managing Agents. See Tips for Expatriate
Tenants, Oct 4 case for other details..
- Delay or
non-payment of rentals. This is a symptom
of ill health of the Company or the Tenant
(personal lease). Managing Agents must be aware
of the "non-payment" of rentals as this
is an indication something is wrong. If the Head
Office wants to close the Singapore Company,
there will be some delays in rental payments due
to changes. For personal lease, the Tenant may be
moving out quietly.
It is therefore
important to get a good quality Tenant
for the Owners. Unfortunately, this may not be
possible in this declining rental market.
- Refund of
Agent’s Commission. Some financially
unstable agents do not refund the pro-rated
commission (brokerage fee). In contracts, include
a clause that the Tenant will be responsible for
the payment of pro-rated commission on breaking
lease.
- Finding a
replacement Tenant by the Agent may be
one way to avoid payment of pro-rated commission.
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