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 Renting a Property: House, Apartment or Condominium

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There are many apartments, condominiums, houses, town houses, colonial houses and semi-detached properties available for rent at varying rates. Properties can be found through a property agent, or try the Straits Times classified ads and AngloINFO Forums.

Finding a Property to Rent

A person looking for a property to rent in Singapore should first select a realtor to represent them. The realtor will ascertain the requirements (type of accommodation, preferred location, budget, number of bedrooms) and source appropriate properties, schedule appointments, collect the person from their hotel or residence and accompany them to view the selected properties. 

Once a property is selected, the realtor will negotiate to secure the property on the tenant's behalf. Properties in Singapore are multi-listed so any chosen realtor should have access to every available property. If a person is aware of a property that they wish to view, they can provide the details to the realtor who should be able to show it. There is no need to use several agents to view various properties. 

Realtors in Singapore work on a commission basis only and do not receive a fee for their work unless they successfully secure a tenant. Commission is paid by the landlord which is refundable by the tenant on a pro-rata basis in the event the lease is terminated early. Tenants are only required to pay commission if the monthly rental is $2,500 or below. The term "co-broking" is used when one realtor represents a landlord and one realtor represents a tenant. The two realtors share the commission fee. This is common practice and ensures that all properties are available to prospective tenants. Be wary of agents who refuse to co broke as this will limit the selection of properties available.

Colonial-style houses

The colonial-style houses are very popular with expatriates. These properties, originally built by the British during the 1900s, are government owned and housing agents do not have access to them. A rental can be applied for through United Premas, DTZ and EM Services. There are waiting lists for the more popular locations. To register, contact United Premas, DTZ or EM Services direct.

Normal rental terms and conditions do not apply when renting a colonial bungalow. These houses are rented on an "as is" basis (although they will repaint before handover). They have no white goods, air-conditioning, light fittings, curtains and so forth included in the price, although the purchase of these items can often be negotiated from the previous tenant. This is called "key money". In the event the outgoing tenant cannot sell or give the fixtures and fittings to the new incoming tenant, the outgoing tenant is required to remove them all from the property, presenting an "empty shell" on hand-back.

All maintenance contracts are the tenant's responsibility.

  • United Premas (central Singapore)
    Tel: 6876 6288 
  • DTZ (mostly central Singapore)
    Tel: 6226 6686
  • EM Services (West Coast and some Central) 
    Tel: 6277 8026
Location

Singapore's residential districts include Bukit Timah, Holland Road, Tanglin district and Orchard Road, formerly known as districts 9,10 and 11 (a reference still used by many). 

Raffles Place is generally regarded as the prime market for office space while Orchard Road is the prime location for retail space. 

The East Coast vicinity (districts 15 and 16) is a less expensive area popular with expatriates.

There are plenty of good-quality serviced apartments that can be used for short-term let. Book well in advance as occupancy rates are high.

Prices are almost always negotiable. When choosing a property home improvements can be negotiated in the rental price. 

Things in a property to check include:

  • The air conditioners and how old they are. Old ones can be costly to run and are often inefficient and noisy
  • If the kitchen is air-conditioned
  • If there is an oven in the kitchen
  • If there a washing machine and drier and if the washing machine operate on varied temperatures
  • Check water pressure
  • Noise level
  • Possible building site nearby
  • Rental Contract
The Rental Contract 

The following documents will be needed to take out a property rental contract:

  • Passport (photocopy pages containing personal information)
  • Photocopy of Employment Pass
  • Deposit (three months' rent is usually secured for the deposit. This will be returned at the end of the contract, with deductions for damaged or missing items)

Contract terms

Lease agreements are usually for a period of two years with a minimum of a six- or twelve-month break clause. Check that the contract has a Diplomatic or Escape Clause. This means that the contract can be terminated before the break point if the tenant is posted elsewhere or the employment pass is cancelled. Proof is often required in these circumstances

The rental usually includes white goods such as fridges, washing machines and air conditioners, but is otherwise unfurnished. Home improvements, such as painting, renewing or upgrading bathrooms and kitchens, can be negotiated in the rental price.

Utilities and Services

The tenant is usually responsible for any installation and monthly bills for utilities, such as gas, water and electricity, and for services such as telephone and TV. The realtor should be able to assist in getting connected to these services.

Inventory

Professional inventories are rarely taken so it is often advisable to take photographs or draw up an inventory of the contents and their condition and get the property owner or their agent to sign it. This can be useful in the event of a dispute at the end of the tenancy.

Expenses

Check whether the following ongoing expenses are included in the contract:

  • the cost of air conditioning maintenance and how often is it serviced
  • pest control (particularly important if living in landed property)
  • garden maintenance and how often
  • pool maintenance and pool cleaning products 
Repairs

A minor repairs clause is contained in every residential Tenancy Agreement in Singapore. Under the terms of this clause, the tenant is required to pay for all repairs that are required as a result of wear and tear. The actual amount is negotiable and can vary, for example, from $100 (for a small apartment) to $250 or more for a house. Some landlords agree to pay the full price of repairs in the event the cost of a repair exceeds the minor repairs limit; others require the tenant to pay the nominated amount in each and every case, the landlord paying only the excess.

Major repairs and maintenance are the responsibility of the landlord, unless the damage has been caused by the negligence of the tenant. There may be an excess (minimum amount that the tenant has to pay if something needs to be repaired). 

Subletting

Where a property is leased, the ability to further sub-let or not depends on the terms of the lease agreement, but in general subletting is not done. Even if sub-letting is allowed, there may be conditions attached. Always agree on the terms of the lease upfront rather than try and change them when the need arises as the owner does not have to agree to changes during the lease period.

Opting out of a lease/rental agreement

An executed lease cannot be terminated by either party except by mutual consent or the exercising of the diplomatic clause by the tenant. Early terminations or "break-lease" initiated by the tenant can be expensive, requiring the tenant to pay rent up to the time that the diplomatic clause could be exercised. However, the realtor should be able to assist in negotiating with the landlord and find a replacement tenant. The costs associated with securing the incoming tenant will be met by the outgoing tenant and may include payment of agent's commission, repainting, requested tenancy works, payment of rent up to the date the new tenancy agreement commences and other factors.

End of the Rental Period

Unless there is an Option to Renew the lease for a further term and the tenant has exercised that option or the parties have agreed to an extension, the lease will expire and the tenant should hand over the property to the owner.

A formal handover with both parties (or their representatives) present is recommended to avoid dispute over deductions from the deposit.

Tax

Goods & Services Tax (Gst): If a landlord is GST registered, GST will be payable in addition to the agreed rental.

Stamp Duty: This tax is payable on all Tenancy Agreements. Stamp Duty is paid by the tenant and is calculated based on the annual rent and term of the lease. The document must be stamped within 14 days of the date of the agreement. Penalties are payable for late payment and there are fines for evasion.

Further Information

Additonal information supplied by Citiprop Pacific, 14-7 Dempsey Road Singapore
Website / Tel: 6473 2777
Copyright © Citiprop Pacific All Rights Reserved


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Page generated at 08:01; Saturday, May 10, 2008
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