For those who have just decided to work and live in Singapore, renting is an unavoidable topic. The recent boom in Singapore’s rental market has frequently gone viral on various social media platforms. Additionally, July and August are when major universities in Singapore start their academic year, leading to a situation where demand outstrips supply in the rental market. Despite this, when renting, it is crucial to first understand the latest rental laws and policies in Singapore to avoid falling into major pitfalls due to haste. With that said, let’s dive into the main topic and get an early look at Singapore’s rental laws, policies, and related rental guides!
Table of Contents
Detailed Explanation of Singapore’s Rental Laws
Before we officially explain Singapore’s rental laws, we need to briefly introduce the types of housing in Singapore. They are HDB flats, private condominiums, terrace houses, and villas. The most common rental properties on the market are HDB flats and private condominiums. For HDB flats, the Singapore government has very strict restrictions on the lease term, with a minimum rental period of six months. For private condominiums, the minimum rental period is three months. In other words, it is illegal in Singapore to operate short-term rental businesses, like Airbnb, with lease terms of less than three months. Recently, some individuals have been heavily fined by the Singapore government for this. Therefore, if you haven’t found a suitable place in Singapore for a short-term stay, renting a hotel would be a safer option.
At the same time, the Singapore government also has strict restrictions on the number of occupants in a home. For HDB flats, 1-room and 2-room flats can house a maximum of 4 people, while 3-room, 4-room, and larger flats can house a maximum of 6 people. Exceeding this limit is a violation of the rules. As for private condominiums, according to the Urban Redevelopment Authority (URA) regulations, no more than 6 unrelated family members can reside in any private residence. However, there are more specific requirements based on the size of the unit: a one-bedroom unit cannot exceed 2 occupants, a two-bedroom unit cannot exceed 4 occupants, and a three-bedroom unit cannot exceed 6 occupants.
It is important to note that regardless of the type of housing you wish to rent, you must hold a valid pass issued by the Singapore government. This includes long-term visas such as a Work Permit (WP) for the construction sector, S Pass, Employment Pass (EP), and Student Pass.
Latest and Popular Residential Units
Unit price from $2,802 psf
District 09 (Orchard / River Valley)
Freehold
1 to 3 bedroom units from $1.356M
- Location and Convenience: Situated in a prime location in Singapore’s core central region, adjacent to Dhoby Ghaut MRT station, providing quick and easy connections to the entire island. The project site was formerly Sophia Ville and Fairhaven, acquired through a collective sale of S$62 million.
- Project Information: The development offers 78 exclusive residential units spread across two 5-story buildings. Residents can enjoy a variety of condominium facilities, such as a swimming pool, spa pool, social and reading lounges, outdoor BBQ area, rooftop bar, and dining areas.
- Unit Mix and Pricing: Offers a variety of floor plans from 1-bedroom units (441 sq ft) to 3-bedroom dual-key units (829 sq ft) to suit different living needs. The prices are highly attractive, offering an excellent investment opportunity for buyers.
- Educational Institutions: The project is close to several renowned schools, including St. Margaret’s Primary School, Anglo-Chinese School (Junior), and Chatsworth International School, ensuring residents’ children have access to quality education.
- URA Transformation Plan: Will benefit from the upcoming Orchard Road URA transformation plan, which aims to turn the Orchard area into a vibrant lifestyle destination, thus increasing the project’s appeal.
Unit price from $2,041 psf
District 15 (East Coast / Marine Parade)
99-year Leasehold
1 to 5 bedroom units and penthouses from $1.390M
- Prime Location: Located in Tanjong Katong in District 15, just a one-minute walk from Dakota MRT station, offering convenient transport links to key locations across Singapore.
- Abundant Shopping and Dining Options: Surrounded by multiple shopping malls like City Plaza, Katong Shopping Centre, and PLQ Mall, as well as a diverse range of dining choices, including local and international cuisine.
- Rich Leisure and Entertainment Facilities: Close to East Coast Park, where residents can enjoy seaside activities. The Circle Line MRT provides easy access to leisure spots like Marina Bay Waterfront Promenade and Gardens by the Bay.
- Educational Institutions: Close to several prestigious schools, including Kong Hwa School, Haig Girls’ School, and Tanjong Katong Primary, providing convenience for families with school-aged children.
- Diverse Housing Choices: Offers a variety of unit types, from 1-bedroom to 5-bedroom apartments and penthouses, catering to the needs of different families and investors.
- Convenient Transportation: Besides its proximity to the MRT station, multiple bus routes and expressways provide excellent connectivity to the city.
Costs to be Paid for Renting in Singapore
When renting in Singapore, besides the rent, there are many other costs involved that you should be aware of before you start.
- Deposit/Security Deposit
This is used to reserve the rental property and is usually equivalent to one month’s rent (for a 1-year lease) or two months’ rent (for a 2-year lease). When a tenancy agreement is successfully signed, the deposit is typically used as the security deposit. When the lease expires and you move out, if the landlord finds any significant damage during inspection, the cost of repairs will be deducted from this security deposit. Additionally, if you breach the lease, such as terminating it early without a valid reason, the landlord may forfeit the security deposit.
- Stamp Duty
Stamp duty is a one-time fee collected by Singapore’s government departments, and the amount varies with the rent. Paying stamp duty protects the tenant’s interests, allowing any disputes with the landlord to be brought to the Small Claims Tribunals.
The formula for calculating stamp duty for a lease of up to four years is: Total rent for the period × 0.4%.
- Agent Fee
If you have engaged an agent to help you find a property, arrange viewings, and negotiate the contract, you will need to pay an agent fee after the contract is signed. However, if you find a rental listing posted by an agent on a rental website or elsewhere and subsequently reach a rental agreement, it means the landlord has commissioned the agent to rent out the property. In this case, the landlord will pay their agent, and you do not need to pay any agent fees.
Related Articles:
Singapore Rental Process
- Search for a suitable property based on your personal budget and location preferences;
- Once you find a property you like, contact the agent or landlord to arrange a viewing;
- After deciding to rent, draft a Letter of Intent (LOI), listing any damages in the room and other requests, and ask the landlord to address them before the lease begins;
- Submit the LOI, a copy of your identification and residence permit, along with the reservation deposit to the agent/landlord, and schedule a time to sign the lease;
- Pay the stamp duty to the Inland Revenue Authority of Singapore (IRAS);
- Sign the Tenancy Agreement (TA) and receive the keys.
Other Points to Note
- Ensure your name is on the lease agreement, as this is necessary for address registration. Whether you are in Singapore for study or work, you will need to open a local bank account, which requires address registration;
- Subletting is not allowed in Singapore (unless approved by the landlord), but you can rent a place together with friends;
- Whether utility bills (water, electricity, internet) are included in the rent or charged separately needs to be negotiated with the landlord and written into the rental contract;
- Other matters such as furniture, move-in date, pets, whether cooking is allowed, and move-out criteria should be discussed with the landlord beforehand and preferably included in the contract;
- Property maintenance fees, insurance, property tax, etc., are paid by the landlord;
- You must be over 21 years old to sign a rental contract. If you are under 21, you will need a guardian or guarantor to co-sign the contract.
Related Articles:
Please note that a consultation fee will be charged if you require professional advice on leasing-related matters.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
