RENTING GUIDE
Renting a place in Singapore
It's never easy finding a place to settle down comfortably within the ideal location, budget and requirements. Even with technology and easy access to property listings, you can be overwhelmed with too many listings, location unfamiliarity, busy schedule.....
We hope this guide can help you get to your HOME SWEET HOME with less efforts. Or just contact us and we will advise!
1. Requirements
2. Search & Viewing
3. Letter of Intent
4. Tenancy Agreement
5. Good Faith Deposit (Booking Deposit) and Security Deposit
6. Stamp Duty
7. Utilities Application
rental guide
1. Think about your MUST-HAVES, WISH LIST... REQUIREMENTS
Remember you are staying in a different country and there are cultural differences, so do embrace the differences and enjoy your stay in Singapore
Questions:
- Location / Size / Budget
- Family or Couple or Just Yourself
- Must have facilities & amenities
- Furnished or Partial Furnished
(Generally, Partial Furn means providence of white goods such as refrigerator, washing machine and dryer)
2. SEARCH & VIEWING
There are good online platforms for you to find your property (99.co, Property Guru, Edgeprop, SRX).
SHORTLIST listings and arrange a VIEWING directly with the Landlord's agent.
Do you need a Property Consultant?
If you are unfamiliar with the rental procedures in Singapore and not aware of locations suitability to match your requirements, finding a reliable good consultant is necessary. Saves Time Saves Efforts
Landlord's Agent
Representing the Landlord or Developer directly and the Landlord will pay commission directly to the Property Consultant.
Tenant's Agent
A Property Consultant that you appoint to assist you in your home search.
General practice, in cases where the rental amount falls below SGD$3,500, you will pay your appointed Property Consultant your share of commission for their efforts and hard work. No hard and fast rule, but common practice in the market.
3. LETTER OF INTENT (LOI)
The Letter of Intent is not a compulsory tool, but is a common practice for Tenants to make an offer with such a document. Once the LOI is accepted & signed by the Landlord, the Landlord will not lease the property to anyone else, subjected to the Tenancy Agreement terms and conditions.
What is on the Letter of Intent?
- Property Address
- Monthly Rental
- Lease term & Start lease date (Lease Term: Usually it is between 1 to 2 years)
- Good Faith Deposit (Booking Deposit) & Security Deposit Amounts
- Diplomatic Clause
- Aircon Servicing (Quarterly) responsibilities
- Minor Repairs & 30-days Defect Liability Period
- Any special requirements
4. TENANCY AGREEMENT (TA)
A legal binding document and is more detailed than the Letter of Intent. The landlord or his agent will prepare the Tenancy Agreement. If there are any legal disputes, references is always made to the Tenancy Agreement.
What is on the Tenancy Agreement?
- Landlords and Tenants full name and address
- Date of TA signed
- Property Address
- Monthly Rental and Mode & Date of payment for the Monthly Rental
- Landlord's Bank Account details for Monthly Rental repayment
- Lease term & Start lease date
- Security Deposit Amount and Terms of Deduction to Security Deposit
- Rental Repayment default Clause
- Diplomatic Clause and if any Early Termination Clause allowed
- Option to Renew Clause
- En Bloc Clause for Collective Sale of the development
- Inventory List (usually given on the Handover Day of the Property)
- Agent Commission payment
- Any special requirements
Tenant's Covenants
- Utilities Payment
- Minor Repairs & Maintenance Clause
- Aircon Servicing (Quarterly) Clause
- Access to Property Clause for repairs or showing potential Tenants/ Buyers
- Subletting Allowance Clause
- Yielding up Property Clause
- Tenant's own insurance for personal belongings and furniture (as needed)
Landlord's Covenants
- Proof of Ownership
- Keep Property in Good Repair with exception of Minor Repair clause
Council for Estate Agencies (CEA) has a recommended template for Tenancy Agreement. It is not mandatory to use CEA's TA template. Most of the Landlords do use their own version of the Tenancy Agreement, which contains similar terms and conditions with CEA's template.
5. Good Faith Deposit (Booking Deposit) & Security Deposit
Good Faith Deposit
The Good Faith Deposit is usually 1-month of the Rental Amount and presented to the Landlord together with the Letter of Intent in the form of cheque or bank transfer. Upon acceptance and signing of the LOI and Good Faith Deposit, the Landlord is not to accept any other offers from potential tenants.
If the Tenancy Agreement terms are not agreed upon, the Landlord is to return the Good Faith Deposit to the Tenant.
If the Tenancy Agreement terms are ok to go ahead, the Landlord will retain this Good Faith Deposit and it will become the 1st-month advance rental.
Security Deposit
The Security Deposit is:
1 month for 1-year Lease Term
2 months for 2-year Lease Term
Upon acceptance and signing of the Tenancy Agreement, the Security Deposit is given to the Landlord in the form of cheque or bank transfer.
6. Stamp Duty
Stamp Duty is payable to Inland Revenue Authority of Singapore (IRAS) on documents relating to leases of immovable properties in Singapore. The Tenant is liable to pay the Stamp Duty. Their Property Consultant will be able to assist them on the payment process. Upon successful payment, the Tenant will receive an e-certificate of the Stamp Duty.
7. Utilities Application
Online Application at SP SERVICES for Electricity + Power + Gas
Give yourself at least 2 weeks for online submission of application form (Submit once you have your move-in date confirmed, late submission may not get you the Turn-On dates that you want, so just keep this in mind)