Guide For Renters
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- Lorraine O’Neal’
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1 Guide Fr Renters September 2012 Intrductin This is an unbiased step-by-step guide fr tenants n renting a prperty in Singapre. We have n cmmercial interest invlved with any f the recmmendatins in this guide apart frm inciting yu t use ur site (which is free). We d nt pretend that this guide is exhaustive, s d yur wn research n tp f reading this. There are basically 3 types f prperties in Singapre: Private apartments/cndminium, the main difference between them being the availability and variety f amenities (frm clse t nne in private apartments t the mst extravagant in sme luxurius cnds). Landed prperties, sub-categrized in terraced huse, semi-detached huse, detached huse, bungalw, and shp huse. These types f prperties are mstly utside the city centre. HDB flats, public develpments built and maintained by the Husing and Develpment Bard (HDB). Thse are usually the mst affrdable ptins. The HDB als builds Executive Cndminiums (EC) designed t fill the gap in the market between HDB flats and private cndminiums. Step 1 Refine yur criteria Here are sme criteria that yu can srt in rder f imprtance: Lcatin: Singapre is divided in 28 districts and here are the main areas: D01, D02, D03, D04, D06, D07, D08, D09: City Centre (suthern part f the island) D05, D10, D11, D12, D13, D14, D15: Peripheral area D16, D17, D18, D19: East Singapre D20, D26, D27, D28: Nrth Singapre D21, D22, D23, D24, D25: West Singapre The mst expensive districts are D01 (Raffles Place), D02 (Tanjng Pagar), D04 (Sentsa), D09 (Orchard, River Valley), D10 (Bukit Timah), D11 (Newtn). Public transprtatin: The Mass Rapid Transit (MRT) netwrk is being expanded but a lt f areas in Singapre are still far frm an MRT statin. Buses cmplement the MRT netwrk, s a public transprt ptin is almst always available. gthere.sg is a very gd tl t estimate yur cmmute time. This guide is prvided free f charge t the users f ezprperty.sg. EZ Prperty Netwrk and its representatives d nt guarantee the accuracy f the infrmatin prvided and shall accept n liability fr lss r damage arising frm decisins r actins made by readers f this guide. 1
2 Guide Fr Renters Private transprtatin: wning a car is a luxury in Singapre. On tp f the car price, drivers are required t pay a Certificate f Entitlement (COE) that can cst mre than half f the car value. S if yu find a place withut any easy public transprtatin ptin, keep this in mind. Taxis is an alternative slutin, but taking a taxi all the time can end up being a cstly expenditure n a mnthly basis. On tp f financial cnsideratins, it can smetimes be almst impssible t find a cab (like n rainy weekday mrnings). Facilities: Landed prperties and HDB estates usually cme withut any facility. Private apartments usually ffer a restricted amunt f facility. Cndminiums, n the ther hand, tend t always ffer at least a swimming pl, a gym, and BBQ pits. Sme ffer a tennis curt, basketball curt, KTV, etc That s in the mst recent cnds that yu will find the mst extravagant facilities like bwling alleys, screening rms, gigantic pls, spas, etc Amenities: gthere.sg is a very gd tl t see what is arund a given address. Just type in yur address, then a panel n the left hand side will prpse t shw yu amenities in the vicinity: ATMs, bank branches, clinics, gas statins, pst ffices, schls, and supermarkets. The main supermarket chains in Singapre are NTUC Fair Price, Cld Strage, Sheng Sing, Giant. Lease term: The mst cmmn lease term is 1 year. Sme landlrds prefer t find a tenant wh wuld agree t take a 2-year lease t avid the hassle f finding a new tenant. Sme landlrds are als pen t negtiate a 6-mnth lease, but it is usually rare. If yu need a place fr less than 6 mnths, it is nt ging t be easy t find. Yur best ptin is prbably t share an apartment and sublet frm a main tenant. Gd news, EZ Prperty has a specific sectin fr shared flats! Furniture: There are usually 3 levels f furnishing: Unfurnished: the prperty cmes withut any furniture. Mst prperties in Singapre cme with built-in kitchen appliances, built-in clsets in the bedrms, and built-in air-cnditining units. Partially furnished: the landlrd prvides a washing machine, a fridge, ne bed in each bedrm, and curtains. Smetimes a dryer and a TV can als be prvided. Fully furnished: the landlrd shuld prvide everything n tp f the list abve: ckware, dining table, chairs, cuch, cffee table, bedside tables, etc The definitin f partially furnished can be flexible s yu shuld clearly specify what yu need when visiting t avid misunderstandings. Step 2 Start yur search At this pint, yu shuld decide whether yu want t use the services f a real estate agent r nt. The agent shuld ask yu fr yur search criteria and prpse yu t visit prperties that fit. Nte This guide is prvided free f charge t the users f ezprperty.sg. EZ Prperty Netwrk and its representatives d nt guarantee the accuracy f the infrmatin prvided and shall accept n liability fr lss r damage arising frm decisins r actins made by readers f this guide. 2
3 Guide Fr Renters that it is nt really recmmended t use mre than ne agent as yu will end up visiting the same prperties twice. Agents have t register with the Cuncil fr Estate Agencies (CEA), s make sure that he/she has a CEA salespersn registratin number n his business card. If yu want, yu can check him/her ut n the fficial website f the CEA. Yu shuld als discuss the agent s cmmissin frm the beginning s there are n surprises when yu finalize the deal. Cmmn practice is that the agent s cmmissin is equivalent t half a mnth f rent per year f lease term (see Step 3). Hwever, this is nt the law, s yu shuld make this clear with yur agent. If yu d nt want t use an agent, well, we are here t help yu find the perfect match! Regarding cmmissins, yu shuld nt pay ne since yu d the wrk n yur wn. The landlrd s agent will get his cmmissin frm him/her and shuld nt ask yu any payment. Step 3 Letter f Intent Once yu have fund a place that yu like and yu are decided t rent it, the fficial dcument t shw yur interest t the landlrd is called the Letter f Intent (LOI). It is usually drafted by the landlrd (r his/her agent) and shuld include: Lease term: Please refer t Step 1 fr cmmn lease terms. It can specify here if yu will have an ptin t renew with 2 r 3 mnths ntice befre the end f the lease. Mnthly rental rate: The agreed rental price shuld be there. Gd faith depsit/bking depsit: It is usually equivalent t ne mnth f rent and it guarantees the landlrd f yur gd faith in renting the prperty. In exchange, the landlrd guarantees nt t ffer the prperty t smene else until the Tenancy Agreement (TA) is signed (see Step 4). Once the TA is signed, this mney is cnverted int the security depsit mney r the first mnth f rent. Security depsit: Cmmn practice is the equivalent f ne mnth f rent fr each year f the lease. The security depsit is returned t yu at the end f the lease, withut interest, and after deductin f any cst fr damage r breach f cntract yu have made accrding t the Tenancy Agreement. Expiry: This is the time frame the landlrd is given t accept r nt yur rental ffer. If he accepts, he/she will submit the Tenancy Agreement fr yur signature. If he/she des nt accept it, yu gd faith depsit will be returned t yu. Additinal requirements: Yu shuld specify any requirement that yu have such as additinal furnishing, if yu intend t sublet the prperty, if yu have pets, if yu require a diplmatic clause (that allws yu t prematurely end the lease fr wrk related reasns), if yu want the landlrd t repaint the walls, etc This guide is prvided free f charge t the users f ezprperty.sg. EZ Prperty Netwrk and its representatives d nt guarantee the accuracy f the infrmatin prvided and shall accept n liability fr lss r damage arising frm decisins r actins made by readers f this guide. 3
4 Guide Fr Renters Yu will be asked t prvide a phtcpy f yur NRIC if yu are a citizen r a Permanent Resident r a cpy f yur passprt and Emplyment/Student Pass if yu are a freigner. Step 3 bis Rm rental agreement If yu are subletting a rm, the prcess is usually much simpler. The landlrd r main tenant will submit t yu a rm rental agreement that will be the nly cntractual dcument. Make sure that the fllwing pints are there: Sub-lease term Mnthly rental rate Security depsit amunt Inclusins, if any (electricity, cable, Internet, etc) Agent s cmmissin, if any Step 4 Tenancy Agreement If the landlrd accepts yur ffer, he/she (r his/her agent) will then submit the Tenancy Agreement (TA) fr yur apprval. This is the binding legal dcument fr yur rental. Yu may hire a lawyer t review it if yu wish, but it is nt necessary. Here are the pints that yu shuld carefully lk at: Yur name and NRIC/passprt number: Are they crrect? The landlrd s name and cntact details: Are they there? Rental rate: Is it the ne agreed? Lease term Payment cnditins: D they suit yu? Security depsit: Is it the ne agreed? Repairs: In case smething breaks dwn, the TA defines wh will pay fr it. Usually, the tenant is respnsible fr items csting less than S$100 (can g up t S$200). The landlrd bears the whle cst f replacement fr items mre expensive than this amunt. Nte that smetimes, the tenant will be respnsible fr the first S$100, s this is pen fr negtiatin. Early terminatin f lease: If yu agreed n a diplmatic clause, check that it is there. Usually, the diplmatic clause allws yu t terminate the lease with a 2-mnth ntice after the first 10 mnths (s this clause is usually useful fr a 2-year lease). Smetimes, the This guide is prvided free f charge t the users f ezprperty.sg. EZ Prperty Netwrk and its representatives d nt guarantee the accuracy f the infrmatin prvided and shall accept n liability fr lss r damage arising frm decisins r actins made by readers f this guide. 4
5 Guide Fr Renters landlrd can add a clause t cmpensate him/her regarding agent s cmmissin that he/she has paid. Inventry: Usually cmes as an appendix. Des it include all the items that were agreed n? Subletting: If yu intend t sublet ne r mre rms, yu shuld make it clear at this pint and add a clause in the TA that stipulates that the landlrd allws it. This will avid prblems in the future. We recmmend that yu spend the apprpriate time t review the Tenancy Agreement befre signing. If yu dn t, yu might regret it shuld a prblem arise. Step 5 Payment f depsit and fees Upn signing the Tenancy Agreement, yu will have t pay: The agreed security depsit and advance mnth f rent (minus yur gd faith depsit) Stamp duties, which are basically a gvernment tax, are usually paid by the tenant. They are dependent n the rent and lease term. The fficial website f the Inland Revenue Authrity f Singapre (IRAS) prvides a calculatr. Agent s cmmissin: depending if yu hired an agent r n what was agreed previusly, the agent will send yu a tax invice. If yu give cash, ask fr a receipt. We advise that yu pay the agent nly after yu have mved in. Step 6 Handver f the keys and check-in inspectin On the first day f yur rental agreement r a few days befre, yu will meet the landlrd r his/her agent at the premises. At least 3 days befre this appintment, yu shuld create an accunt with Singapre Pwer Services (SP Services) and set up the date fr pwer, water, and gas activatin (sme prperties are nt linked t the city gas supply, s check with the landlrd befrehand). Yu will have t pay a depsit (usually S$300 t S$500) that will be refunded t yu when yu clse the accunt. If yu dn t d this, there might be n pwer n yur mve-in date and this culd cause yu sme truble. Yu shuld g thrugh the inventry list and check each item. Check that nthing is brken (fixtures and fittings, appliances, furniture, etc ) and that there are n anmalies (stains r scratches n walls, cracks, brken flr tiles, etc ). If yu ntice anything wrng, put it in writing and take a picture. Give a cpy f this reprt t the landlrd and keep ne fr yurself. This will avid prblems when yu check ut. Cngratulatins, it s nw time t enjy yur new hme! This guide is prvided free f charge t the users f ezprperty.sg. EZ Prperty Netwrk and its representatives d nt guarantee the accuracy f the infrmatin prvided and shall accept n liability fr lss r damage arising frm decisins r actins made by readers f this guide. 5
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