SINGAPORE LEASING GUIDE

I. Lease Agreement
Prior to the commencement of the lease, a formal Lease Agreement or Tenancy Agreement (TA) will be prepared detailing the terms of the lease.
 
Any legal fees incurred for the drawing up of the TA is usually borne by the tenant. However, if the landlord's TA is acceptable, there will usually not be any legal fees involved.

You will probably find the following principal terms in the Tenancy Agreement:

• Length or Term of Lease

• Types of Accommodations

• Diplomatic or "Escape" clause

• Security Deposit

• Payment of Rent

• Service Charge / Maintenance Fees

• Property Tax

• Insurance

• Repairs & Maintenance

• Public Utilities, Telephone and Cable Television

• Furnishings & Furniture

• Stamp Duty

 

Length or Term of Lease

In Singapore, the standard lease period is 2 or 3 years, 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.

Types of Accommodations

n seeking suitable accommodation, you need to be aware that there are 3 main categories of residential properties, namely HDB Flats, Landed Property and Non-Landed Housing.   Public Housing (HDB Flats) More than 80% of Singaporeans live in public housing. These apartments are mostly (85%) owned by the occupants. These apartments are located in housing estates, which are self-contained towns with clinics, schools, supermarkets, food centers, as well as sports and recreational facilities. They are known as HDB flats because they are built and maintained by the Housing and Development Board.   There are one-room, two-room, three-room, four-room, five-room and executive flats. The living room is counted as one room. So one-room flat has no bedroom with a built-in area of about 30 sq m or 323 sq ft. A two-room flat has one bedroom with a built-in area of about 45 sq m or 485 sq ft. A three-room flat has two bedrooms with a built-in area of about 70 sq m or 754 sq ft. A four-room flat has three bedrooms with a built-in area of about 90 sq m or 969 sq ft. A five-room flat has three bedrooms with a built-in area of about 110 sq m or 1,184 sq ft. Some have an extra room that is used as a study; others have a dining area. An executive apartment has three bedrooms and separate dining and living rooms. They are the largest apartments built by the Housing Development Board, with a built-in area of about 150 sq m or 1,615 sq ft. Flat owners can only sublet the whole flat if the owner has fulfilled all conditions required by HDB. Please note that potential tenant should only rent from flat owners with HDB approval.   Landed Property Landed properties are houses with gardens. Conventional landed housed comprises of bungalows (a freestanding house), semi-detached (a pair of houses) and terrace units (a row of houses), all of which come with private garden compounds. There is also another category of landed properties that share a common compound and facilities. These include strata bungalows, cluster houses and townhouses.   Non-Landed Housing This is another name for apartments and condominiums. In land-scarce Singapore, they are by far the most common form of housing. Private condominiums and apartments, where residents share the common compound and facilities, are the preferred choices for most expatriates. They come in various sizes, ranging from low-rise blocks to extensive high-rise developments. Most condominiums come with good-quality finishes, luscious landscaping, basement car park and full recreational facilities such as clubhouse, children's playground, gymnasium, swimming pool, squash, tennis courts, and sometimes even a putting green. Most developments have 24-hour security surveillance, intercom systems and sometimes even home automation systems. The units range from studio, 1, 2, 3 and 4-bedroom units, penthouses. They start from as small as 500 square feet to as large as 9,000 square feet.

Diplomatic or "Escape" Clause

This allows the tenant to terminate the lease prematurely for good reasons; eg: if your employment in Singapore ceases or if you are transferred out of Singapore. However, this clause normally becomes applicable only after you have rented the premises for at least half the lease term, plus giving 2 or 3 months' written notice in advance for the termination. Normally the diplomatic or escape clause is not applicable for 1 year lease.

Security Deposit

It is normal for the landlord to request a security deposit upon the signing of the TA. 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 TA. The amount of security deposit varies from 2 to 3 months' gross rent.

Payment of Rent

Rent is normally payable monthly in advance at the beginning of each month or on the date of lease commencement. .

Service Charge / Maintenance Fees

For properties with shared compounds and facilities, such as apartments and condominiums, maintenance charges and services charges are payable. This is usually paid by the landlord and accounted for in the gross rent.

Property Tax

This tax is levied annually on all properties in Singapore and is normally paid by the landlord.

Insurance

Fire insurance and other insurance relating to the premises are the responsibility of the landlord.

Repair and Maintenance

The tenant is responsible for maintaining the leased premise, carry out minor repairs at tenant own costs. Only major repairs and maintenance would be the landlord's responsibility provided that the tenant is not in breach of any of the conditions stated in the TA. The landlord usually requires the tenant to take up service contract for items such as air-conditioning, gardening and pool servicing.

Public Utilities, Residential Telephone & Cable Television

The tenant can apply an account with:   SP Services (formerly known as Power Supply Ltd) for the water and electricity supply. Singapore Telecom Ltd for the residential telephone line. Power Gas for piped gas in selected areas and developments. Starhub Cable Vision Limited for cable television.   The installation charges and the monthly bills for such services are the tenant's responsibility.

Furnishing & Furniture

Properties are mostly leased with fully furnished or partially furnished. It is always advisable to confirm the inventory list with your landlord beforehand so that you will know what are provided.   Unfurnished The following items are usually included with the property: Air-conditioning unit Built-in wardrobes Water heaters Kitchen cabinets Light fittings   Partially Furnished In addition to the items listed above, the following items are usually included with the property: Curtains Cooker hob / cooker hood Refrigerator Washing machine / dryer   Fully Furnished In addition to the items listed above, basic loose furniture may also be provided. These include sofa set, dining set, double bed for the master bedroom and single bed for the rest of the bedrooms.

Stamp Duty

Stamp duty on the TA is a statutory requirement and is usually borne by the tenant.

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