Let’s say you’ve viewed several properties and finally found a clean, comfortable house that feels like home, with a friendly landlord. Despite the rising rent, you’re keen on securing this unit.
You’ve already completed and signed the Letter of Intent (LOI), and now only one obstacle stands between you and moving in: the Tenancy Agreement (TA).
However, after spending a significant amount of time, you still can’t make sense of the tenancy agreement’s clauses. Don’t worry, this article will provide a detailed breakdown of the rental agreement. We recommend downloading a rental inspection checklist to help tenants with a smooth handover, which can be read alongside this article.
Table of Contents
What is a Tenancy Agreement (TA) and Why is it Important?
If you’re the type of person who would rather starve for a day than read a legal document line by line, think of the tenancy agreement as a way to protect you (and your landlord).
A standard tenancy agreement, or TA, lists the terms and conditions agreed upon by the tenant and landlord. As a tenant, your rights and responsibilities are clearly stated in your rental contract.
The tenancy agreement serves as a reference point in case of any disagreements between the tenant and landlord on issues such as monthly rent, maintenance and repairs, and privacy.
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What is in a Typical Tenancy Agreement?
A tenancy agreement in Singapore typically includes the following information:
- Full names and addresses of the landlord and tenant
- Address of the property to be rented
- Lease term
- Rent amount, clearly stating whether it includes utilities
- Rent payment schedule and details
- Any additional costs, such as stamp duty or agent commissions
- An inventory list detailing all items in the rental property and their condition
- Diplomatic Clause
- Purpose of use of the premises
- Residency status of the tenant and occupants
- Maintenance and upkeep of the HDB flat
- Tenant’s covenants, such as paying rent, not subletting, and keeping the property in good condition
- Landlord’s covenants, such as providing a habitable property
- Notices
- Termination of lease
- Suspension of rent
This list may seem long, but don’t be overwhelmed. Below, we’ll narrow down and focus on the tenancy agreement clauses that tenants should pay more attention to.
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Clauses to Look Out For Before Signing a Tenancy Agreement
| TA Clause | Details |
| Diplomatic Clause | This clause allows a tenant to break the lease agreement without incurring a heavy penalty if they need to leave Singapore permanently. |
| Security Deposit | The security deposit clause specifies how deductions will be made for repairing or replacing damaged items when the tenant terminates the lease. |
| Maintenance and Repair | This clause states that the tenant is responsible for paying for any repairs and maintenance below a certain amount. |
| Inventory List | This clause is a long list of all items in the room or property, such as appliances and furniture, along with their respective conditions. |
| Privacy and Access | Under this clause, the landlord must obtain the tenant’s permission before entering the property. There are some exceptions where the landlord can enter the premises while the tenant is at home. |
It’s important to note that signing a tenancy agreement without understanding the clauses can put you at a disadvantage. If you have any questions about any clause in the agreement, you should clarify them with your property agent or landlord.
If you are told to ignore anything, don’t. Otherwise, you might find yourself in a difficult position later on. For instance, you could end up in a dispute with your landlord due to a misunderstanding of the rental regulations.
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Diplomatic Clause
If you are an expatriate, make sure this clause is included in the tenancy agreement. Although it is usually included in standard templates, it’s best to double-check.
This clause typically comes into effect from the midpoint of the lease (e.g., after the first year of a two-year lease) and allows the tenant to break the lease agreement under certain circumstances. If a tenant is unexpectedly posted to another country and needs to leave Singapore, they can invoke the diplomatic clause to terminate the lease without incurring a heavy penalty.
⚠️ Please note that the notice period for the diplomatic clause is usually two months. After all, the landlord needs sufficient time to find another tenant to take over the property.
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Security Deposit
When signing a tenancy agreement, the tenant is required to pay a security deposit, which is usually one month’s rent for a one-year lease. If the tenant has already paid a good faith deposit after signing the Letter of Intent (LOI), for simplicity, the landlord or their agent may agree to “convert” the balance of the deposit into the security deposit.
At the end of the lease, deductions for items damaged during the tenant’s stay are typically taken from the security deposit. Please note that the security deposit cannot be used to offset rent during the lease period.
The security deposit clause usually sets out the terms for deductions to cover the cost of repairing and replacing damaged items, while normal wear and tear over time is permitted.
For example: Slightly faded curtains are generally considered reasonable wear and tear, and the landlord should not be entitled to deduct from the security deposit. On the other hand, if the tenant breaks something that would not normally be damaged under normal circumstances (e.g., an expensive ceiling light is shattered or a bathtub is cracked), the landlord may reasonably deduct from the security deposit to repair or replace the damaged item.
Ensure that the clause clearly specifies a definite deadline for the return of the security deposit. Generally, the security deposit should be returned upon the return of the keys at the end of the lease.
However, it is not uncommon for the agreement to stipulate a waiting period of 7 to 30 days after the end of the lease before the security deposit is returned. This period allows the landlord to accurately assess any repair costs that may be needed.
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Maintenance and Repair
For clauses involving repairs and maintenance, check the amount you are responsible for. As a tenant, you are required to pay for minor repairs resulting from wear and tear. This helps ensure that the rental property is kept in good condition.
A standard tenancy agreement usually states that the tenant is responsible for paying for any repairs and maintenance below a certain amount. This amount ranges from $150 to $300 and may be used for repairing air conditioners, faucets, changing light bulbs, etc.
If the cost of repairing an item exceeds the amount the tenant is liable for, the landlord is obligated to cover the remaining cost.
For example, suppose the clause states you are responsible for costs up to $150. If the air conditioner needs repair and it costs $200, you must pay $150. The remaining $50 will be paid by the landlord.
⚠️ Please note that the clause should also include a grace period for reporting defects, usually the first 30 days of the lease. These defects may include faulty plumbing or wiring, malfunctioning air conditioners, or damaged sockets.
During this grace period, the tenant can notify the property agent or request the landlord to make repairs without having to pay out of pocket. Remember to take photos of these faulty items and send them to the property agent or landlord via a timestamped email during this period.
To be safe, the tenancy agreement should explicitly state that the landlord will be responsible for resolving these defects if they are reported within the grace period. This ensures you don’t have to pay for damages caused by a previous tenant.
You can create your own or download a rental inspection checklist to make your inspection more organized.
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Inventory
This clause essentially lists all items in the room or property, such as appliances and furniture.
Before signing on the dotted line, check that all items listed in the inventory match what is available in the property you are renting. Be extra careful when checking this section and ensure that all items match the description and are in working order. If there are any defective items, be sure to inform the landlord so they can arrange for a replacement.
This is also an opportunity for the tenant to request the landlord to remove any items from the house. If there are particularly expensive items, the tenant can request them to be removed from the inventory list to avoid the risk of damaging them.
You can also note down the brand and even model number of the items in the inventory, as there have been cases of dishonest landlords using the inventory list to cheat tenants.
No one wants to pay for a “missing” six-thousand-dollar LG 8K OLED TV that an unscrupulous landlord claims was there, when the TV has always looked like an oversized toaster with a piece of glass on the front.
Taking note of the details can prevent any unethical landlord from accusing you of swapping the appliance for a cheaper model and insisting you pay for the original item.
Below is an example of what a living room inventory list might look like:
| Description | Quantity |
| Sofa | 1 |
| TV (Brand, Model) | 1 |
| Coffee Table | 1 |
| Display Cabinet | 1 |
| Ceiling Lights | 3 |
| Air Conditioner (Brand, Model) | 1 |
| Curtains | 1 |
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Privacy and Access
Most people would not be too comfortable if friends, or even family, showed up unannounced. Let alone the landlord?
In short, the privacy and access clause protects the tenant’s privacy. Under this clause, the landlord must obtain the tenant’s permission before entering the property.
Additionally, the clause specifies a series of reasons for which the landlord is allowed to enter the premises during the tenant’s stay. These usually include:
- Repairs
- Renovations
- Viewings by future tenants
⚠️ Please note that the clause should state how far in advance the landlord should notify the tenant to ensure they don’t show up unexpectedly.
After all, you don’t want your landlord to show up at your door when you’re comfortably binge-watching a tear-jerking Netflix series, or when you’re in the middle of a difficult yoga pose you’ve finally mastered.
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Downloadable Singapore Tenancy Agreement Templates
If you’ve never seen a tenancy agreement before, Anjia SG provides free sample Singapore tenancy agreement templates for reference or download. These templates are from the Council for Estate Agencies (CEA), which regulates real estate agents and salespersons in Singapore.
• Private Residential Properties
Even if you are only renting a room instead of an entire HDB flat, these tenancy agreement templates are still applicable. You may need to customize some clauses, but most of them are comprehensive.
The image below provides a brief overview of the clauses you should pay attention to before signing a tenancy agreement.
We hope this article has helped you better understand the various clauses, making it easier to review and sign your tenancy agreement.
Happy renting!
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