Procedure for Rental

Expat Guide - Rent Property in SingaporeExpat Guide - Rent Property in SingaporeExpat Guide - Rent Property in Singapore

Singapore Expats leasing, renting guide - This page covers a step by step guide and information on the procedures for expat to rent or lease property like an apartment or house in Singapore.

Please also read our Expatriates FAQ for more information.



Property Search

Engage a Realtor

A professional property agent in Singapore will assist you and protect your interest throughout the purchase, secure the offer for you at the best possible price. With a much better knowledge of Singapore, the agent will be in a better position to recommend and advice on the choice of property. He will also ensure that all documents are in order and you are dealing with the rightful owner of the property.

Use Only 1 Agent

Most property companies share the same database of property listings in Singapore. Therefore use only ONE agent at a time. If you approach many agents at the same time, very likely that they will show you the same property. Much confusion and embarrassment will arise if you engage many agents. Using 1 agent, you will save valuable time for yourself and the agent. He will then understand your needs and requirements better after a few viewings. Only if they are incompetence, unresponsive or not showing the correct property you wanted, then start to look for another agent.

Location and Price

Deciding on the right location is very important and it will determine the convenience for you family and yourself. Price - budgeting yourself will also evaluate which are the areas and apartments or houses that are suitable for you. Refer to our House Hunt Guide for more details and tips.

Documentation


You have decided on take up a property and you need to prepare the following:

  • Photocopied passport
  • Photocopied employment pass
  • One month's rental for the goodfaith deposit
Your agent will then prepare the necessary documents for you such as the Letter of Intent and Tenancy Agreement.

Letter of Intent

The Letter of Intent, LOI for short, is a letter proposing your intention to lease and your requirements to the landlord. You should take note of the following:

1. Diplomatic or Repatriate Clause

This clause is to safe guard you if in the event you are no longer employed, transferred to other countries, you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you. Please note that most landlords will only include the diplomatic clause if the lease is more than a year. 

2. Goodfaith Deposit (booking deposit)

This is the booking deposit, usually the amount is one month's rent. After the landlord signed the Letter of Intent and accept this deposit, he cannot rent the property to other party. This deposit will become part of the security deposit or advance rental after the Tenancy Agreement is signed.

3. Security Deposit

The amount of the security deposit is usually stated in the Letter or Intent. The standard practice in Singapore is usually one month's rent for every year of lease. It will only be payable upon signing of the Tenancy Agreement. When the lease term ends, the deposit will be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.

4. Term of Lease

In Singapore, the standard lease period is more than 1 year, with or without an option to renew the lease. The lease renewal is usually for another 1 to 2 years. For the lease renewal option, the landlord would normally require that you give 2 or 3 months' advance notice of your intention to renew. Most landlords will not accept leases that are less than 1 year.

5. Your Requirements

Ensure that all your requirements and requests are stated in the Letter of Intent clearly. Like requesting a new sofa, new bed or new washing machine etc. After the landlord had signed the Letter of Intent, he is bound by the Letter to provide your requests.

Fully Furnished (F/Furn) or Partially Furnished (P/Furn)  - Fully furnished means the apartment or house you are renting comes with all the furniture, white goods (refrigerator, washer and dryer) and all the essential electric appliances. Partially furnished apartments or house usually only comes with white goods, curtains, lightings or some other loose items. Although a house may be partially furnished at the time of viewing, you can always request the landlord to fully furnish it or request him to get the items you require. All these issues are always negotiation and will determine the final rental amount.


Tenancy Agreement

After the Letter of intent is duly signed. The landlord will prepare the Tenancy Agreement. Any legal fees incurred for the drawing up of the agreement is usually borne by the tenant. However, if the landlord's agreement is acceptable, there will usually not be any legal fees involved.

If the landlord or the landlord's agent is using the standard IEA agreement, it should be fine. Your agent will then ensure that the Tenancy Agreement is fair and unbiased.

You will need to prepare the rest of the security deposit and advance rental upon signing of the Tenancy Agreement. For 1 year lease - 1 month's deposit and 1 month's advance rental. For 2 years lease - 2 month's deposit and 1 month's advance rental. Minus the goodfaith deposit (if applicable) that you have paid when signing the Letter of Intent.

These are the important terms you should take note of when signing the Tenancy Agreement:

1. Diplomatic or Escape Clause and Reimbursement Clause

Check for this clause. This clause is to safe guard you if in the event you are no longer employed, transferred to other countries, you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you. Please note that most landlords will only include the diplomatic clause if the lease is more than a year. 

In a standard Singapore Tenancy Agreement, there is usually the reimbursement clause together with the diplomatic clause. This clause states that if you exercise the diplomatic clause, you will have to reimburse part of the commission the landlord had paid to his agent.

The reason behind this clause is that the landlord had paid the full one month's agent commission for a 2 years lease but if you terminate the lease by exercising the diplomatic clause, hence unable to complete the full 2 years, you will have to refund the pro-rata commission. Since landlord grants the diplomatic clause, they will usually demand reimbursement clause to be included in the tenancy agreement.

2. Public Utilities, Telephone and Cable Television

The installation charges and the monthly bills for the following services are the tenant's responsibility:

  • SP Services - the water and electricity supply
  • City gas - piped gas in selected areas.
  • Singapore Telecom- residential telephone line.
  • Starhub Cable Vision (SCV) - cable television and cable broadband internet.

Although at times the tenant can request for some of the fixed bills to be included in the rental amount as a package.

3. Repairs and Maintenance

The tenant is responsible for maintaining the leased premise, carry out minor repairs at own costs. In a standard agreement, the tenant will only be responsible if the amount of the repair does not exceed S$100 or S$150.

Only major repairs and maintenance would be the landlord's responsibility provided that the damage or malfunction of appliances is not caused by the tenant's negligence.

The tenant will have to take up service contract for items such as air-conditioning, gardening, pest control or pool servicing.

4. Rental Amount

Check the rental amount. Sometimes the landlord will divide the rental amount into a. rental of premises, b. rental of furniture and fittings, c. maintenance fees. Just make sure it adds up to the correct amount that you have agreed.

5. Stamp Duty

In Singapore, Tenancy Agreement will need to be stamped by the Inland Revenue Authority of Singapore. Only after the Tenancy is stamped then it can be considered a valid contract as evidence in court for any disputes that may arise in the future with your landlord. This is to protect the interest of both parties. The stamp duty is usually borne by the tenant.

Computation of the stamp duty fee (updated 22 Feb 2014):

Rental Period of 4 years (48 months) or LESS

Total rental x 0.004

then round down to the nearest dollar

Example 1a Monthly rent is $5,000
Term of lease is 2 years (24 months)
Therefore, stamp fee = 5000 x 24 x 0.004 = $480

Example 1b
Monthly rent is $3,888
Term of lease is 3 years (36 months)
Therefore, stamp fee = 3888 x 36 x 0.004 = $599.872 = $559 (rounded down)

Rental Period MORE than 4 years (48 months)

Total rental divided by the number of years (average annual rent)
Then use the above answer x 0.016

then round down to the nearest dollar

Example 2a
Monthly rent is $5,000
Term of lease is 5 years (60 months)
Calculations:
5000 x 60 / 5 = 60000
60000 x 0.016 = $960
Stamp fee = $960

Example 2b
Monthly rent is $3,888
Term of lease is 6 years (72 months)
Calculations:
3888 x 72 / 6 = 46656
46656 x 0.016 = $746.496
Stamp fee = $746 (rounded down)

6. Term of Lease

The standard lease period is 1 year or more, with or without an option to renew the lease.

Taking Over the Property


The landlord will prepare an Inventory List on or before the day of handing over. Check the items listed in the inventory. Check all electrical appliances, air-con, lightings, water heater etc.

If there is anything unsatisfactory, do not panic, note it down on the inventory. Even brand new houses have defects, therefore be understanding and allow the landlord to rectify it within a reasonable period.

Commission Payable


As each realtor may charge differently, please refer to your realtor for the service fee payable.

Tenant and landlord should ensure that an invoice from a licenced real estate agency is issued to them. Upon payment, do not pay cash directly to the realtor, instead, issue a cross-cheque payable to the realtor's agency according to the invoice.

Related Page

   
Looking to play football/soccer

ns557614:
I've just moved to Singapore and looking to pick up some football (soccer). I'm open to 5 a-side, 7-a-side or 11-a-side. Please let me know if anyone has any advice in finding a team/group or is looking for players? Thanks!

Re: Are pets allowed in rented HDB flats?

merichan:
Officially cats aren't allowed in HDB flats, apart from the 2 estates that do have pilot registration programmes.

However, as long as cats are kept strictly indoor and neutered, you're in a grey area where the cats will be tolerated as long as none of your neighbours complain.

SCPA, the Cat Welfare Society allow people living in HDB to adopt cats as long as they follow the indoor/ neutered rules.

Scam - apartment deposit

JCCT:
Hi, I recently left Singapore and I'm currently going through a battle with a property agent for getting my deposit back.

I stayed in the apartment for 3 years; I completed a 2-year contract + reniewed the contract with an expat clause which I could exit the contract after 6 months from the comencing date (+3 months notice) in case of leaving the country.

On the handover day, the agent mentioned that the place would require another professional cleaning. I had a maid cleaned the place, but it seemed it was not up to the standard. Fine.

I waited, waited and waited..after my several emails, the agent finally came back to me, which was 2 months after the handover. In the contract, I was supposed to receive my deposit back within 14 days, by the way.

The agent came back to me with a full list of reduction including the professional cleaning and repair costs of more than SGD 3K.. It's a scam!! I thought I kept the place tidy and clean so I was really shocked to see that. The agent claimed that there were some stains on the marble floor and wooden floor so they arranged to polish the floor too. I don't record any major stains on the floor and we didn't go through the issues during the handover.

In addition, I was charged for the agent commission of nearly SGD 5K despite the expat clause..

I don't think all the agents are playing a game like this but if you are a foreigner and leaving the country, they may take advantage of you. So please be alert and protect yourself. Select a good trusted agent. (By the way, the agent I used was Orange Tee. Not recommended. http://www.orangetee.com/Home/)

Moved from London!

ns557614:
Hi All, I moved to Singapore 4 weeks ago from London and I'm keen to meet new people! I work near City Hall, let me know if you're up for a drink one evening after work! :-)

Re: Where to go in South East Asia?

toorak_girl:
Bali's nice too, sand, sea... beer...

Re: Advice needed - got an offer while another branch of the company is pending

rajagainstthemachine:
I was in the same situation as OP when I first responded to this thread.

I had company 1 give me a second round interview for next week, then I had company 2 call me at night to organise an interview the next day, I was offered the job at the end of the interview, and had the contract that day to look over. Company 2 then gave me a deadline of midday the next day to choose to take the position.

After being in Singapore since March and these being the first interviews I've had it was super difficult to turn down the guaranteed job, but I did. No point settling just because they think im desperate.

Turns out for the best, I've found out that the reason a better job turned me down was because they couldn't or didn't want to sponsor me... because they didn't understand what a LOC was, so hopefully that will be explained to them and things will progress with that job.

Otherwise I'm fairly certain I'll get the job from company 1, though pay isn't ideal (leave is 24 days a year though... sooo...)

In your case thats just ridiculous! Being asked to commit to a decision with less than a day to decide!

Re: 23F Working for IT company :) Let's go out and have fun!

hkfoodie:
Hey there :) I'm a 22F also super new to SG! Looking to meet a social circle outside work as well!

Re: roasted coffee beans

Strong Eagle:
On Balestier Road

https://www.google.com/maps/place/Bales ... 03.8523054

Re: Whatsapp Meetup group

hkfoodie:
Hi guys! I'm a 22F new to SG as well, and would love to meet more people. :) Could I please get added? Thanks!

Re: roasted coffee beans

x9200:
That place?
https://www.facebook.com/tionghoesc/

Looks good. I work near the Ayer Raja cluster so it's less than 5 min for me on a motorbike. Thanks again.

Re: roasted coffee beans

taxico:
i made a mistake - blk 168. they are literally right beside each other (like, 5 seconds to cross over).

google the blk, road name, and the word "coffee" and give them a call before you go. that's where i used to buy my coffee from (but not in 1kg bag as i like them freshly roasted).

Legal Document translation

aarkady:
Hi all,

Please help me to find best translation agency for legal document translations in Singapore.

Thanks in Advance

Regards
Aarkady

Re: Sundry humour

toorak_girl:


Re: Advice needed - got an offer while another branch of the company is pending

NZinSG:
I was in the same situation as OP when I first responded to this thread.

I had company 1 give me a second round interview for next week, then I had company 2 call me at night to organise an interview the next day, I was offered the job at the end of the interview, and had the contract that day to look over. Company 2 then gave me a deadline of midday the next day to choose to take the position.

After being in Singapore since March and these being the first interviews I've had it was super difficult to turn down the guaranteed job, but I did. No point settling just because they think im desperate.

Turns out for the best, I've found out that the reason a better job turned me down was because they couldn't or didn't want to sponsor me... because they didn't understand what a LOC was, so hopefully that will be explained to them and things will progress with that job.

Otherwise I'm fairly certain I'll get the job from company 1, though pay isn't ideal (leave is 24 days a year though... sooo...)

Re: Hair loss treatment

toorak_girl:


Husband's GP recommended to try Regaine ( ), with a small chance of hair-growth, and a larger chance of slowing hair-loss. Hubby hadn't grown any hair, but he says when he went off it he seemed to lose more. GP also said that the only reason he recommended this is that if this doesn't work, we know we've done our best, and not to waste good money on any of the myriad expensive hair-loss products being marketed out there.

It's available off the shelf at Guardian ) too, but their website doesn't seem to show it.

Hubby did go to a dermatologist though, who gave prescription Finasteride . Same results - taking it *seems* to slow things down, that's all. Like the GP, the dermatologist was up-front about the chances.

Personally, with either treatment, I can't tell if it's all one big placebo effect in the name of hope. I'd say go visit a dermatologist and get real medical advice before paying for any treatment out there.