Renting 101
The team from PropertyGuru runs through some key things to consider if you’re a newcomer looking for a place to live (or an “oldie” who’s keen for a refresher course!).
Renting in Singapore, like most places, is about finding the sweet spot between convenience and affordability. Those on a smaller budget can consider single rooms in government-owned apartments known as Housing and Development Board (“HDB”) flats, while those with more to spare can look at private properties like condo units or landed houses. Rental prices are also influenced by location – generally, the nearer the property is to the city centre, the more it’ll cost.
Shortlisting & Inspecting
The first step is to peruse a thorough listing of residential properties based on what matters the most to you. You can narrow down the listings on PropertyGuru by property type, proximity to MRT, area size, lease terms and price. You’ll then be connected to reliable property agents based on your preferences.
Once you’ve found a place you love the look of, it’s time to inspect it, before making a preliminary offer to the landlord. Property inspections can be arranged with registered agents via PropertyGuru. Experts in the market, these agents can help you explore the neighbourhood and address any concerns on the condition of the property, nearby amenities, the noise levels, your immediate neighbours and, perhaps, the reputation of your owner.
When inspecting your potential new home, take notes and photos of the following:
• any cracks, scratches and/or other damages caused by mould or water;
• any exposed pipes and/or broken fixtures;
• any creaking and/or damaged furniture;
• the number of household appliances and their condition; and
• the number of air-conditioning units (as they require regular servicing).
Also, measure rooms for moving furniture, and be sure to enquire about parking on or near the property, and, if relevant, about the landlord’s policy on keeping pets.
If you’d like to proceed, the next steps are to prepare a Letter of Intent (LOI) and submit it together with a good faith deposit, usually equivalent to one or two months’ rent. After you sign the Tenancy Agreement (see opposite), the good faith deposit will typically be used as payment for the security deposit.
Tenancy Agreements: 7 clauses to consider
The Tenancy Agreement (TA) is a legally binding document detailing the rental terms between you (the tenant) and the landlord. It’s usually prepared by the landlord (or their appointed agent) according to the Council of Estate Agencies’ (CEA) template.
You should pay special attention to the following clauses.
#1 Security Deposit: This clause usually sets the terms for a deduction at the end of the lease period that can be used to cover the cost of repairing and replacing any damaged items, while allowing leeway in fair wear and tear of items over time.
#2 Diplomatic Clause: This clause allows you to break the rental agreement if you lose your job or are unexpectedly posted to another country and need to leave Singapore. The notice period is usually two months.
#3 Minor Repairs & Other Maintenance Clauses: As per the standard rental agreement, tenants are liable to pay for any repair and maintenance costs that fall below a range of $150 to $300. This amount is negotiable.
#4 Option to Renew: This clause allows tenants to extend their lease for another year as long as they give prior notice. The tenant or landlord can amend clauses within the existing agreement on mutual consent.
#5 Late Payment/Non-Payment of Rent: The landlord is allowed to set the consequences should the tenant pay late rent, or is unable to pay rent at all. Usually, this will involve interest imposed on the outstanding rent.
#6 “En Bloc” Clause: This clause serves to protect the landlord’s interest if the property is sold for redevelopment. In such circumstances, the landlord can choose to terminate the lease without having to compensate the tenant.
#7 Privacy and Access: This clause specifies a list of reasons under which the landlord is allowed to access the premises while you’re staying there. This usually includes repairs, renovations and viewings for future tenants.
Move-In Checklist
The landlord or owner must prepare an inventory report for you to check and sign on the day you move in. This includes detailed information on the condition of the property’s interiors, and covers existing damage to any fixtures, fittings and appliances. If you’ve inspected the property well at your viewing, you can tally that knowledge with your photos of the move-in day to record the original condition of the property and look for inconsistencies.
In Singapore, tenants of a newly rented property enjoy an initial grace period of 30 days under the Problem-Free Period Clause. This protects you from liability for damages caused by a previous tenant, and allows you time to inform the landlord of any damages or issues with the property over the initial 30-day period.
Start browsing Singapore properties for sale and rent at www.propertyguru.com.sg.