Guide to Renting a HDB Flat

By Lin Zhiqin

/ The Edge Property |

June 10, 2016 12:00 PM SGT

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Non-citizen tenant quota

There is a quota for tenants who are non-Malaysian Singapore Permanent Residents and foreigners

The quota is capped at 8% at the neighbourhood level and 11% at the block level

If the quota has been reached, only Singaporeans and Malaysians can rent a flat in the neighbourhood and block

You or the landlord can check the quota using HDB’s e-Service

Eligibility conditions for tenants

Tenants must be any of the following

Singapore citizens

Singapore Permanent Residents

Non-citizens legally residing in Singapore who hold passes with a validity period of at least 6 months from the date of the HDB subletting application

Employment Passes

S Passes

Work Permits

Work Permit holders from the construction, marine and process sectors must be Malaysians

Student Passes

Dependant Passes

Long-term Social Visit Passes

Tenants who own a HDB property are not allowed to rent another HDB flat, unless

They are divorced or legally separated

A landlord can only rent to one party of the divorced or legally separated couple

Tenants must rent out their HDB flat within 1 month of renting a flat or room from a landlord

They own an Executive Condominium and have met their 5-year MOP

Process of renting a HDB flat

Decide on your budget and criteria for a rental home

Search and browse rental listings

Consider engaging a real estate salesperson (property agent) who can assist you in your search, help with paperwork and negotiate on your behalf

Check that the salesperson is registered with the Council for Estate Agencies (CEA)

Shortlist and arrange to view the properties you are interested in

View the properties

You should take a look at the surroundings

You should also look at the common areas and facilities to check on maintenance

Letter of Intent (LOI) and good faith deposit

LOI is an offer from you to rent the property. It should include the following:

Name of tenant and NRIC/passport number

Lease term of usually 6 months, 1 year or 2 years

Monthy rental

Expiry of LOI.

This is the time frame, usually 7 days, for the landlord to accept your offer.

Good faith deposit, usually equal to one month of rent.

In return for the deposit, the landlord cannot offer the property to another tenant.

The landlord must return this deposit in full if he does not accept the rental offer.

The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement (TA) is signed

Security deposit

This is usually one month of rent for each year of lease term.

The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement is signed

This will be returned without interest to the you at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.

Additional requirements. You may specify requirements such as:

Permission to sublet your property

Permission to live with pets

Diplomatic clause. Under this clause, you can terminate the lease after 12 months by giving 2 months notice if you are no longer employed by your employer in Singapore. You will have to the landlord show proof of your transfer to other countries or cessation of employment in Singapore

Landlord to apply for subletting approval from HDB

Tenancy Agreement (TA)

If the landlord accepts your offer, he will prepare the TA, to be signed by both of you. This forms the rental contract

The TA should include the following:

Landlord’s name and contact details

Name of tenant and NRIC/passport number

Lease term

Monthy rental

Payment conditions

How and when the rental is to be paid

Security deposit

This is usually one month of rent for each year of lease term.

The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement is signed

This will be returned without interest to you at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.

Terms for repairs

Inventory

Additional requirements. You may have requests such as:

Permission to sublet your property

Permission to live with pets

Diplomatic clause. Under this clause, you can terminate the lease after 12 months by giving 2 months notice if you are no longer employed by your employer in Singapore. You will have to the landlord show proof of your transfer to other countries or cessation of employment in Singapore

Payment of deposit and fees

Upon signing the TA, you will have to pay

Security deposit, less the good faith deposit already paid

The first month of rent in advance

Payment of stamp duty

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You are required to pay stamp duty to IRAS to have the TA stamped within 14 days of signing it if it was signed in Singapore

The deadline for stamping is 30 days after receiving the document in Singapore if it was signed overseas

You can e-Stamp online or at these locations listed by IRAS

Computation of stamp duty

Average Annual Rent (AAR)	Lease Duty Rates
AAR does not exceed $1,000	Exempted
AAR exceeds $1,000Lease period of 4 years or less	0.4% of total rent for the period of the lease
AAR exceeds $1,000Lease period of more than 4 years or for any indefinite term	0.4% of 4 times the AAR for the period of the lease

AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for:

Advertising and Promotion charge

Furniture / Fittings charge

Maintenance charge

Service charge

Any other charges, excluding GST charges

Inspection and handover, your salesperson can assist with this

Check each item on the inventory list with the landlord or his salesperson on or a few days before the date of commencement of the list

Receive the keys

Source: HDB, IRAS, The Edge Property

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