Questions from Renters

“How do I find the right agent?”

Word of mouth is usually best and it is highly recommended to use a single agent who will then commit to you 100 percent; agents here are paid on a commissiononly basis. Avoid registering with a number of agents: it’s time-wasting and confusing for everyone concerned as they all access the same database of properties on the market. If you do decide to view properties with more than one agent, tell them upfront which properties you have already viewed to avoid duplication.

“Will I need to pay the agent a commission? How much?”

Commission is negotiable; however, the rule of thumb is that the amount is half a month’s rent per year of lease. Note that the agent cannot collect commission or fees from more than one party in a transaction. So, if he collects a commission from you, he cannot collect a commission or co-broking fee or payment from the other party or their agent. There are prescribed agreements for the sale, purchase or lease of residential properties in Singapore – these can be found at www.cea.gov.sg.

“How many properties should I look at?”

Limit your viewing to no more than five or six properties at a time. Tell your agent what you’re looking for in terms of price, location and minimum number of bedrooms. Don’t get too stuck on style, but do stipulate if you need a balcony, small grass area or larger outdoor space. Many people end up doing a complete u-turn on their initial criteria – e. g., choosing more space over something modern. Do mention if you have animals at the beginning of the search. Take photos when viewing to review afterwards and to show other members of the family.

“I’ve found the place I like. What are some of the important steps to take before signing on the dotted line?”

Make sure you request a second viewing so you can make a note of anything you might need to ask for in the Letter of Intent (LOI), such as the replacement of damaged fixtures such as taps, rusty hobs, mouldy fridges/ washing machines and so on. Changes not requested in the LOI will be almost impossible to implement after the lease has been signed. Do be reasonable with your requests, as you don’t want to risk your offer being rejected because you appear to be a “difficult tenant”.

You should also ensure you’re covered by a Diplomatic Clause. This clause allows expats to break their leases after 14 months (12 months plus two months’ notice) if, for whatever reason, they have to leave Singapore. Leases may not be broken on any other grounds.

At the time of handover, make sure all your requests have been

met. You or your agent should take notes on the Inventory List and take file photos of any defects such as damaged flooring or broken items. This will protect you at the termination of the lease. Signing your contracts and moving in should not be the end of the relationship with your agent. A good agent will keep in touch to provide ongoing help and advice and help with the hand-back of the unit at the end of the lease.

“Are there any hidden charges to be aware of?”

For apartments, your rental usually includes the service charge for general maintenance of the common facilities. For landed properties, there is no service charge, but as with apartments, you are responsible for minor repairs and routine maintenance, payment of public utilities, telephone and cable TV services, and servicing of airconditioning units. All of this is covered in the Tenancy Agreement.

“How much deposit do I need to pay?”

Two deposits are required: one month’s rent payable with the LOI, and two months’ rent with the Tenancy Agreement (TA). One month’s payment goes towards the first month’s rental and is called the good faith deposit, or holding deposit. The second is held as the security deposit and returned by the landlord interest free (minus the cost of making good any damage) at the end of the lease. The tenant is also required to pay the stamp duty.