Guide to Renting out HDB Flat

By Lin Zhiqin

/ EdgeProp |

June 10, 2016 12:00 PM SGT

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Eligibility conditions for landlords

Only Singapore citizens who have fulfilled the 5-year Minimum Occupation Period (MOP) are allowed to sublet the entire HDB flat

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Singapore citizens who have not fulfilled the MOP are allowed to sublet rooms but not the entire flat

Singapore Permanent Residents (SPR) are allowed sublet rooms but not the entire flat, even after fulfilling the MOP

You can check your eligibility to sublet the entire flat (Log in with your SingPass and go to: My Flat > Purchased Flat – Subletting > Subletting of Whole Flat)

You must apply for approval from HDB before subletting the entire flat

Rooms of HDB flats that are 3-room or larger can be sublet without prior approval from the HDB

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You must notify HDB within 7 days of the commencement date of the lease

You must notify HDB of tenancy terminations, renewals, and changes to tenants’ particulars within 7 days of such changes

Non-citizen tenant quota

There is a quota for tenants who are non-Malaysian SPR 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 can check the quota using HDB’s e-Service

Eligibility conditions for tenants

Subtenants 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 your 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

You are not allowed to rent your HDB flat to tenants who own other HDB properties, unless

They are divorced or legally separated

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

Your tenants rent out their HDB flat within 1 month of renting a flat or room from you

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

Immigration & Checkpoints Authority (ICA) Anti-Harbouring

Homeowners who wish to rent their premises to foreigners are required to exercise due diligence in checking the immigration status of their prospective foreign tenants to ensure that they are in Singapore legally.

Before renting your room, flat or house, you are required to carry out the following mandatory checks:

Check his original immigration pass and/or work pass

Cross-check the particulars of his pass against the particulars on his original passport

Verify the validity of his pass by checking with the issuing authority, which is the ICA or Ministry of Manpower

Total number of occupants

The number of occupants, including tenants, is limited by flat type to prevent overcrowding

Flat type	Maximum number of occupants
1-room	4
2-room	4
3-room	6
4-room, 5-room, Executive	9

For landlords subletting rooms, all owners and authorized occupiers must continue to live in the flat with the subtenants during the subletting period

Process of renting your property

Set your asking price. Consider engaging a real estate salesperson (property agent) who can assist you in pricing your rent

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

Market your property. Your salesperson will assist you in this

List your property for rent

Screen the prospective tenants

Check if your property fits their criteria, such as budget, number of bedrooms, size and location

Conduct viewing

Negotiate with prospective tenants who will try to bargain

Check prospective tenants’ eligibility

Collect Letter of Intent (LOI) and good faith deposit

LOI is an offer from the prospective tenant to rent your 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 you to accept rental offer.

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

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

You must return this deposit in full if you do not accept the rental offer.

You must return this deposit in full if HDB does not approve your subletting

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 tenant at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.

Additional requirements. The tenant may specify requirements such as:

Permission to sublet your property

Permission to live with pets

Diplomatic clause. Under this clause, the tenant can terminate the lease after 12 months by giving 2 months notice if he is no longer employed by his employer in Singapore. The tenant must show proof of transfer to other countries or cessation of employment in Singapore

Apply for subletting approval from HDB

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For the sublet of the entire flat, you must apply for approval prior to the date of commencement of the lease

For the sublet of rooms

You must notify HDB within 7 days of the commencement date of the lease

You must notify HDB of tenancy terminations, renewals, and changes to tenants’ particulars within 7 days of such changes

If HDB does not approve the subletting, the LOI will be voided and you must return the good faith deposit in full to the tenant

Tenancy Agreement (TA)

If you accept the prospective tenant’s offer, you will need to prepare the TA, to be signed by you and the tenant. This forms the rental contract

The TA should include the following:

Your name and contact details

Name of tenant and NRIC/passport number

Lease term

Monthy rental

Payment conditions

How and when you want the rental 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 the tenant at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.

Terms for repairs

Inventory

Additional requirements. The tenant may have requests such as:

Permission to sublet your property

Permission to live with pets

Diplomatic clause. Under this clause, the tenant can terminate the lease after 12 months by giving 2 months notice if he is no longer employed by his employer in Singapore. The tenant must show proof of transfer to other countries or cessation of employment in Singapore

Payment of deposit and fees

Upon signing the TA, the tenant 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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The tenant is 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

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

Inspection and handover, your salesperson can assist with this

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

Hand over the keys

Source: HDB, ICA, Ministry of Manpower, EdgeProp

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