Before renting out their property, landlords should take note of the following:
URA guidelines for renting out private residential properties
Private residential properties or the rooms within their premises should not be rented out on a short-term basis for less than six months on a daily/weekly/monthly basis
Renting out the whole unit or individual rooms for residential purposes is only allowed for long-term stays of six months or more if these conditions are met:
no internal partitioning works that alter the layout of the property to create more rooms. Such overcrowding can pose safety concerns
in the case of master tenancies or en-bloc leasing-out, there should only be one single tenancy agreement per residential unit to cover the number of occupants for the unit. This does not apply to a single property or individual owner who rents out rooms within his unit to different tenants
each occupant should have at least 10 sqm of space. The maximum number of occupants in a residential unit is eight, no matter how big the unit is
includes the owner if he is living within the premises
does not apply if the unit is occupied by a family who is not renting out the premise in any way
Immigration & Checkpoints Authority (ICA) Anti-Harbouring
Homeowners who wish to rent their premises to foreigners are required to exercise due diligence in checking the immigration status of their prospective foreign tenants to ensure that they are in Singapore legally.
Before renting your room, flat or house, you are required to carry out the following mandatory checks:
Check his original immigration pass and/or work pass
Cross-check the particulars of his pass against the particulars on his original passport
Verify the validity of his pass by checking with the issuing authority, which is the
ICA
or
Ministry of Manpower
Process of renting your property
Set your asking price. Consider engaging a real estate salesperson (property agent) who can assist you in pricing your rent
Check that the salesperson is registered with the Council for Estate Agencies (CEA)
Market your property. Your salesperson will assist you in this
List your property for rent
Screen the prospective tenants
Check if your property fits their criteria, such as budget, number of bedrooms, size and location
Conduct viewing
Negotiate with prospective tenants who will try to bargain
Collect Letter of Intent (LOI) and good faith deposit
LOI is an offer from the prospective tenant to rent your property. It should include the following:
Name of tenant and NRIC/passport number
Lease term of usually 6 months, 1 year or 2 years
Monthy rental
Expiry of LOI.
This is the time frame, usually 7 days, for you to accept rental offer.
Good faith deposit, usually equal to one month of rent.
In return for the deposit, you cannot offer the property to another tenant.
You must return this deposit in full if you do not accept the rental offer.
The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement (TA) is signed
Security deposit
This is usually one month of rent for each year of lease term.
The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement is signed
This will be returned without interest to the tenant at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.
Additional requirements. The tenant may specify requirements such as:
Permission to sublet your property
Permission to live with pets
Diplomatic clause. Under this clause, the tenant can terminate the lease after 12 months by giving 2 months notice if he is no longer employed by his employer in Singapore. The tenant must show proof of transfer to other countries or cessation of employment in Singapore
Tenancy Agreement (TA)
If you accept the prospective tenant’s offer, you will need to prepare the TA, to be signed by you and the tenant. This forms the rental contract
The TA should include the following:
Your name and contact details
Name of tenant and NRIC/passport number
Lease term
Monthy rental
Payment conditions
How and when you want the rental to be paid
Security deposit
This is usually one month of rent for each year of lease term.
The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement is signed
This will be returned without interest to the tenant at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.
Terms for repairs
Inventory
Additional requirements. The tenant may have requests such as:
Permission to sublet your property
Permission to live with pets
Diplomatic clause. Under this clause, the tenant can terminate the lease after 12 months by giving 2 months notice if he is no longer employed by his employer in Singapore. The tenant must show proof of transfer to other countries or cessation of employment in Singapore
Payment of deposit and fees
Upon signing the TA, the tenant will have to pay
Security deposit, less the good faith deposit already paid
The first month of rent in advance
Payment of stamp duty
The tenant is required to pay stamp duty to IRAS to have the TA stamped within 14 days of signing it if it was signed in Singapore
The deadline for stamping is 30 days after receiving the document in Singapore if it was signed overseas
The tenant can
e-Stamp online
or at
these locations listed by IRAS
Inspection and handover, your salesperson can assist with this
Check each item on the inventory list with the tenant on or a few days before the date of commencement of the list
Hand over the keys
BOOK A FREE APPRAISAL
We would love to help you get the most out of your property.
Should you be thinking of selling, or would simply like an update of where your property sits in today's market, book a non-obligatory discussion with one of our TemasekClass consultants.