Understanding Agency Fees: A Detailed Breakdown of a 1.2m Rental Agreement

This document outlines the fees associated with a rental agreement totaling 1.2 million. It’s crucial to understand all costs involved before proceeding. Let’s break down the components:

Agency Fee: 10%

A 10% agency fee is charged on the total rental amount. This fee compensates the agency for their services in facilitating the rental agreement. This is a common practice in the rental market and covers expenses such as advertising, property viewings, tenant screening, and lease preparation.

Calculation: 10% of 1.2 million = 120,000

Service Charge: 300,000

In addition to the agency fee, a separate service charge of 300,000 is applicable. This charge likely covers additional services provided by the agency or a third-party service provider. It’s essential to clarify exactly what services this fee covers. This could include, but isn’t limited to:

• Property management services
• Tenant support services
• Legal fees associated with the agreement
• Other administrative fees

It’s strongly recommended to request a detailed breakdown of this service charge before signing any agreement.

Important Cautions

Before committing to this rental agreement, carefully review all associated documents and clarify any ambiguities. Understand the implications of each fee and ensure you are comfortable with all aspects of the agreement. Don’t hesitate to seek independent legal or financial advice if needed.

Total Costs Summary

To summarize, the total cost associated with this 1.2 million rental agreement includes:

• Rental Amount: 1,200,000
• Agency Fee (10%): 120,000
• Service Charge: 300,000
• Total Cost: 1,620,000

This detailed breakdown aims to provide clarity and transparency. Always ensure you fully understand all fees before signing any contract.