Expatriate Living

Expatriate Living

When moving to Singapore for the first time, an Expatriate would normally rent an apartment or a landed house. Expatriates are generally concentrated in certain areas that have a wide variety of condominiums to choose from. Typically you would consider the following factors when looking for a property for the first time in Singapore :

* Budget for rental.
* Type and size of property you want to live in.
* Distance to work and transportation links.
* Proximity to international schools, if you have any children of school going age.
* Restaurants and entertainment and other free time options in the neighbourhood.
* Distance to the Airport, if you or your partner plan to travel a lot.

Let's have a look at the regions in Singapore first and then tackle the main factors in detail.

Regions in Singapore

Singapore is approximately 50km wide and 30km long, and the city centre is located in the central southern part of the island. The main office area that is in the city centre is also referred as Central Business District ( CBD ), and the main shopping area is around Orchard road, as well in the city centre. As most of the entertainment options are also concentrated in the central area, it is not surprising that the most popular areas for expatriates to live in are in and around the city centre - but there are other attractive options as well. Singapore is divided into 27 districts starting at '1' in the central area as shown below.

Map of Singapore Island

District Map of Singapore

Central Area

( Districts 01 – 09, 11 )

Central areas offer some of the most luxurious and expensive living in Singapore. Tanglin area and the road towards Holland Village at the end of Orchard Road is probably the most prestigious - and most embassies are located around here as well. Newton ( north of Orchard ) and River Valley ( south of Orchard ) are more popular among single professionals and young couples. The Singapore river area ( Robertson Quay, Clarke Quay & Boat Quay ) has especially been rejuvenated in the recent years and boasts now numerous restaurants and bars. On the other hand, there are few condominiums in the CBD and the activity can be somewhat quiet during the evenings as it is mostly offices. Central areas offer very short distances to most free time attractions and are also well served by public transportation to and from to various parts of the island.

Holland Village and Bukit Timah

( Districts 10, 21, also parts of District 05 )

Bukit Timah area has many landed properties, but there are also some condominiums to choose from. It would be a good choice if you want a landed property and/or live in a quieter neighbourhood. It also has many good schools and is popular among families. Many well-off Singaporeans also live in this area. Holland Village is popular hang-out place among expatriates living in the area and it has quite a few restaurants and bars, as well as some shopping amenities for daily needs. Bukit Timah Nature Reserve and water reservoir areas are also nearby. They are the biggest green spaces in Singapore and are very popular for outdoor activities.

East Coast

( Districts 14, 15, 16 )

The road from CBD towards Changi Airport, know as East Coast, has numerous Condominiums to choose from - some with a very nice sea view. The condominiums tend to be more expensive closer to the city centre ( known as Tanjong Rhu area ). Apart from the attraction of living close to the sea, there is also East Coast Park that stretches along the coast and gives numerous free time options for the outdoor types. Parkway Parade offers some large scale shopping in the middle of East Coast.

The biggest downside in the east coast is probably the distance to the MRT line. The Eastern MRT line does not go along the coastline, and you would have to take a bus to the MRT station, or just use a taxi, if you do not opt for own car. However, a new Circle Line due to be completed by 2010 will add 4 new stops to the West side of the East Coast area.

Other Areas

It is not to say that there are no other options for expatriates. There are condominiums and private housing on offer all around the island and you may also get more for your money than in the most popular areas. Notably Woodlands is popular among American Expatriates, because of the American school and the spacious housing offered there - preference among them being for landed properties.

Budget and Property Prices

The rental prices fluctuate heavily depending on the supply and demand of the available units. The rental prices for private properties have in many places doubled in the last two years, as also happened during the 90's property boom. The following table gives you a rough idea what you can expect with what kind of budget currently :

Central (Newton, Holland Village, River Valley, Orchard, Tanglin)

1-bedroom apartment - S$3,000 – S$7,000

2-bedroom apartment - S$3,500 – S$8,000

3-bedroom apartment - S$4,500 – S$10,000

Penthouse / 4+ bedrooms - S$6,000 – S$20,000

Terraced House - S$6,000 – S$25,000

Bungalow - S$15,000 – S$60,000

East Coast & Bukit Timah

1-bedroom apartment - S$2,500 – S$4,000

2-bedroom apartment - S$3,000 - S$5,000

3-bedroom apartment - S$3,500 - S$7,000

Penthouse / 4+ bedrooms - S$5,000 - S$15,000

Terraced House - S$7,000 – S$10,000

Bungalow - S$12,000 – S$40,000

Other Areas

1-bedroom apartment - S$2,000 – S$3,000

2-bedroom apartment - S$2,500 – S$4,000

3-bedroom apartment - S$2,800 – S$5,000

Penthouse / 4+ bedrooms - S$3,200 – S$8,000

Terraced House - S$5,000 – S$10,000

Bungalow - S$8,000 – S$20,000

Property Type – House vs. Apartment

Expats typically live in either an apartment/condominium or a landed house. This is a matter of preference and budget. Typical condominiums in Singapore have multitude of facilities - e.g. swimming pool, gym, tennis courts, children playground, and BBQ pits. And they are usually within a walled compound with security guards around, although Singapore is not a dangerous place at all. Because the plot sizes are relatively small in Singapore, only the very luxurious landed properties have pools and other facilities.

For somebody moving from a colder climate, you have to also remember that Singapore is in the tropics and there are more small animals ( insects, geckos ) around than you may be used to. These tend to cause more problems in landed properties, especially close to green areas. But if you have the budget, there are some very nice bungalows to live in that will give you the luxury and privacy that a condominium would not be able to do.

Transportation

Singapore has one of the most modern and best functioning transportation systems in the world, and travelling from any point in the island to another does not take very long in normal conditions. Car ownership can be expensive in Singapore, but on the other hand the roads are good and less congested than in many other cities of similar population density. Public transportation is also very good, but tends to be more concentrated in areas where the Singaporeans live ( close to HDB estates ). In any case, unless you really live at the edge of Singapore, your commuting time would rarely exceed one hour.

Your main options for moving around are described below :

Mass Rapid Transport ( MRT )
MRT, Singapore’s metro/underground system, currently has 3 lines ( 4th being built currently ). Our map search shows the location of MRT stations in Singapore. We will also give you details of the distance to the closest MRT station for each listing.

Map of Singapore’s MRT links

Bus
Singapore also has extensive bus network that covers much larger area than MRT. You can find bus routes here. It's not possible to show the entire bus map on a single map however you can find details at http://sbs.streetdirectory.com.sg/sbs/sbsindexsn.jsp?map=1

Taxis
Taxis are generally plentiful and cheap compared to many other countries. This would probably be the transport of choice for most single professionals living close to the city centre. Sometimes it can be difficult to get one during peak hours, and extra charges apply for calling one and during peak hours.

Private Cars
Owning a private car is expensive relative to many other countries and is not really necessary in Singapore. Most people would save money by using taxi rather than owning a car. However, owning a car gives you freedom to move around - and popping to Malaysia every now and then to have a round of golf might be a big enough reason to get one.

Traffic conditions are generally good in Singapore. But be aware of all the charges that you have to pay when owning a car :

* Purchase price – Cars are probably one of the most expensive in the world to buy in Singapore due to import duties and Certificate of Entitlement ( COE – a permission to own a car for 10 years, after which it has to be renewed ).

* Road tax – depending on the size of the engine, you need to pay road tax every year. This can vary from a few hundred for a small car to thousands for an SUV.

* Electronic Road Pricing ( ERP ) – during peak hours you have to pay fees ( S$0.50 to a few dollars ) to enter through certain roads and areas ( mostly in central area ). ERP locations can be found at http://www.lta.gov.sg/motoring_matters/motoring_erp_location_cbd.htm

* Parking – parking may or may not be offered for free at your office. Especially, in CBD it can be quite expensive. Also, typically you would have to pay for parking in most locations when out in town. Condominiums usually have parking included in the maintenance fee ( which is paid by the landlord ).

* Petrol – it may come as a surprise, but petrol is probably the smallest component of you car ownership costs. It is currently around S$1.80 / litre.

You will also need to convert your driver's license into Singaporean once within a year. This is relatively straight forward process, but will require you to sit the basic theory test. The road traffic in Singapore is on the left side of the road ( as in UK and Malaysia ).

International Schools in Singapore

There are many international schools in Singapore to cater for the needs of expatriates. For most large groups of expatriates, you have a choice of sending your children to a school which follow your national curriculum and teaching is in your native language. These are the main international schools in Singapore – please check their websites for more information.

Australian International School
1 Lorong Chuan, Singapore 556818
http://www.ais.com.sg/

Bhavan's Indian International School
11 Mt Sophia Blk E, Singapore 228461
http://www.biissingapore.org/

Canadian International School
5 Toh Tuck Road, Singapore 596679
http://www.cis.edu.sg/

Chatsworth International School
37 Emerald Hill Road, Singapore 229313
http://www.chatsworth-international.com/

Dover Court Preparatory School
301 Dover Road, Singapore 139644
http://www.dovercourt.edu.sg/

DPS International School
36 Aroozoo Avenue, Singapore 539842
http://www.dps.com.sg/

EtonHouse International School
51 Broadrick Road, Singapore 439501
http://www.etonhouse.com.sg/

German School
72 Bukit Tinggi Road, Singapore 289760
http://www.gess.sg/

Hollandse School
65 Bukit Tinggi Road, Singapore 289777
http://www.hollandseschool.org/

International Community School
514 Kampong Bahru, Singapore 099450
http://www.ics.edu.sg/

ISS International School
21 Preston Road, Singapore 109355
http://www.iss.edu.sg/

Japanese Kindergarten
251 West Coast Road, Singapore 127390

Japanese School ( Primary )
95 Clementi Road, Singapore 129782 ( Clementi Campus )
11 Upper Changi Road North, Singapore 507657 ( Changi Campus )

Japanese School ( Secondary )
201 West Coast Road, Singapore 127383
http://www.sjs.edu.sg/

KGS International Pre-School ( Japanese )
16 Ramsgate Road, Singapore 437462
http://pachome1.pacific.net.sg/~yoko/kinder/kgs.html

Lock Road Kindergarten
10 Lock Road, Singapore 108938

Lycee Francais De Singapour
3000 Ang Mo Kio Ave 3, Singapore 569928
http://www.lyceefrancais.edu.sg/

Norwegian Supplementary School
c/o Royal Norwegian Embassy, 16 Raffles Quay #44-01 Hong Leong Bldg, S048581

Overseas Family School
25F Paterson Road, Singapore 238515
http://www.ofs.edu.sg/

Rosemount Kindergarten
25 Ettrick Terrace, Singapore 458588
http://www.rosemount.com.sg/

Rosemount International School
461 Telok Blangah Road, Singapore 109022
http://www.rosemount.com.sg/

Sekolah Indonesia
20A Siglap Road, Singapore 455859

Singapore American School
40 Woodlands Street 41, Singapore 738547
http://www.sas.edu.sg/

Singapore Korean School
74 Lim Ah Woo Road, Singapore 438134
http://www.koreansingapore.org/

Swedish Supplementary Education School
c/o Swedish Embassy, 111 Somerset Road #05-01 Singapore Power Building,
Singapore 238164

Swiss School
38 Swiss Club Road, Singapore 288140
http://www.swiss-school.edu.sg/

Tanglin Trust School
95 Portsdown Road, Singapore 139299
http://www.tts.edu.sg/

United World College of South East Asia
1207 Dover Road, Singapore 139654
http://www.uwcsea.edu.sg/

Thanks for your reading,
Hoping those tips are useful for you.

Regards

Wingcent Ning
ATG (ECG Property)
(+65) 8163 6290
wingcent@singnet.com.sg

Property-RentBuySell.Blogspot

Frequently Asked Questions - Renting House / Room

Frequently Asked Questions - Renting House / Room

** What do I need to look for in renting property ?

Before you start, ask yourself what are the priority requirements.

1.) Age - New properties usually have better fittings / fixtures ...
2.) Facilities - Furniture, cable-ready, internet ...
3.) Location - Near your office, shops and markets, MRT, bus stop, school ...
4.) Environment - Greeneries, relexed, city living ...
5.) Size of property ...
6.) Number of bedrooms ...
7.) Open area - Garden, porch, patio or balcony ...
8.) Budget - How much are you prepared to pay for the rental ?

** Should I use a property agent’s service ?

While you probably will need to pay commision for the service, housing agents might save you money in the end. As they have database of rental property, they can provide you with property that suits your needs best. Besides, they can save you from many legal woes arising from improper leasing procedure.

** Price Guide

The rental rate varies widely depending on factors like type of property, location, property age, facilities, etc ... Please take into account maintenance and utilities bill too. Know before hand whether you will foot the bill or included in the rental, and put it into the leasing agreement.

- Room rental starts from $250 for a common room in HDB up to $1,200 for room in a condominium.

- Rental for a HDB flat range from $1000 to around $2600.

- For private apartment or condominium, monthly rental rates may start from S$1,500 to S$6,000.

- A landed property ( bungalow/terrace/semi-detached house ) can cost S$3,000 onwards.

** What other factor do I need to find out about ?

Landlords

Bad landlords will complicate your lifestyle when both of you could not reach an agreement on maintenances, repairs, etc in your new home. Bad landlords will also delay the repairs or requests that will create unnecessary frustration.

Good housing agents will provide information about the landlords. It is also important for you to personally meet the landlords before signing the leasing contract. You can judge their conduct and know them better. Properties for lease from well established developers are recommended.

** What is the procedure for renting a room/house ?

Once you have identified a suitable rental offer, contact the house owner for viewing. If you are keen to rent the place, make sure that all verbal agreements with the house owner are confirmed in writing in a lease / tenancy agreement. Do not sign the lease agreement until you have read and understood the terms stated in the agreement.

Usually a deposit equivalent to one month’s rental is payable. This deposit is not refundable should you subsequently reject the room. This deposit is refundable at the end of the tenancy provided the room / apartment, fixtures and fittings are returned to the owner in good condition, allowing for fair wear and tear. First month’s rental is usually required. Hence, you may need to make an upfront payment equivalent to 2 months rental in the first instance. Make sure that all payments made are supported by receipts.

** How much commision do I have to pay to the housing agent for apartment or room rental ?

Rental of HDB Flats and Rooms :

Landlord
- One month’s gross rental for lease between 12 months to 24 months, and an additional half a month’s gross rental for every subsequent 12 months’ lease or less.
- Half of a month’s gross rental for less than 12 months' lease.

Tenant
- Half of a month’s gross rental for less than 12 months' lease.
- One month’s gross rental for lease between 12 months to 24 months.

For other properties :

Landlord
- One month’s gross rental for lease between 12 months to 24 months, and an additional half a month’s gross rental for every subsequent 12 months’ lease or less.
- Half of a month’s gross rental for less than 12 months' lease.

Tenant
- Half of a month’s gross rental, only if monthly rental is less than $2,500

Please refer to the Institute of Estate Agents website at http://www.iea.org.sg/ for IEA’s recommended commission guidelines on lease of Housing and Development Board ( HDB ) rooms / flats, private apartments.

The issue of commission should be sorted out before entering into a lease agreement. If it is agreeable to both the house owner and tenant, it becomes binding once it is stated in the lease agreement.

** Will house owners lease their apartment / room for a short period of stay ?

It is more difficult to obtain short term leases. Usually lease agreements are for duration of at least 6 months. Most house owners would prefer a lease of 1 or 2 years.

** What do I do in the event of any dispute over claims with the house owner ?

It is advisable that you attempt to negotiate a settlement with the house owner in the first instance. Ask your housing agent for mediation help. If this is not resolved, you may contact the People’s Association ( at 6344 8222 ) for information on Community Clubs which operate legal clinics if you need free legal advice.

Thanks for your reading,
Hoping those tips are useful for you.

Regards

Wingcent Ning
ATG (ECG Property)
(+65) 8163 6290
wingcent@singnet.com.sg
Property-RentBuySell.Blogspot

Guide to Renting a Property

Guide to Renting a Property

Who are potential renters ?

- Expatriates who are stationed overseas for a prolonged period of time.
- Couples who are saving to purchase their own home.
- Singles who need to have their own privacy.

What to consider when choosing a property to rent ?

When looking for a property to rent, above all else you need to consider the location. Selecting the right location is very important because it determines the level of convenience to you and your family. Apart from that, property size, facilities, duration of lease, level of furnishing, and your budget are also other important factors to consider.

Do you prefer to live in a quieter neighbourhood surrounded by lush greenery or do you feel more at home living right in the heart of the city ? Before you make a decision, you need to consider the needs of those living with you too i.e. if you have children, where is the nearest school, what is the distance to the workplaces of your other family members, does the area have good public transportation and so forth ...

** How many rooms would you need ?
** Would your children be sharing a room or will they each have their own ?
** Where would the maid sleep ?
** Do you need additional space for storage, e.g. a storeroom ?

This will help you in choosing the property size that best suit your needs and budget. You also need to consider how you are going to manage the upkeep of the property as a bigger property would require more time and money to upkeep.

Facilities near the property or facilities that come with the property must be convenient to you. For example, some condominiums provide gyms and swimming pools. This should be included in your checklist when searching for a property to rent if they are important to you. Proximity of grocery shops and markets are also points to consider.

Duration of the lease is another important aspect. If you know that you need the accommodation for a substantial period of time, it is advisable to specify your intention right from the very beginning to the Landlord. This will help you to negotiate a better rental deal with the Landlord as Landlords prefer Tenants who would rent for a longer term.

Rental properties come either partially or fully furnished. Ensure that you inquire about the level of furnishing in order to find one that suits your need. A partially furnished property usually comes with lightings, washing machine, air-conditioning and basic kitchen equipment. A fully furnished property usually comes with extra items such as beds, sofa, and television.

Evaluate your budget and stick to it as this will help you find the area and type of property that is most appropriate for you. You need to evaluate how much you are willing to spend on the rental, and you have to factor in other expenses such as utilities, cable television, internet access, telephone line and electricity.

Offer to Rent

Once you have found the property that suits you, you need to go through some formal procedures with the Landlord.

You will need to give the Landlord a formal offer to rent the property through a “Letter of Intent”. The Landlord officially accepts your offer when he/she signs the letter. Generally, the property agent assigned by the Landlord or you will prepare all the necessary documents.

Letter of Intent

The Letter of Intent is a proposal by you to the Landlord, citing your intention to lease and your requirements. Most Landlords will of course have agreed to accept the requirements verbally ahead of time. As good faith, most rental agreements will start with the Tenant giving the Landlord 1 month’s rental in advance as a deposit.

Generally in a Letter of Intent, the terms addressed are as follows :

Term of lease
– Typically ranges from 12 to 24 months, with an option to renew for another 12 to 24 months upon the expiration but subjected to possible adjustments of rental price at the discretion of the Landlord based on the prevailing market rates. When the market rate is good, Landlords prefer to have 24 months lease terms to lock-in the good rental rates. The standard term in Singapore is 12 months and most Landlords will not accept leases less than 12 months. For renewal, the tenant is usually required to give between 2 to 3 months advance notice to the Landlord.

Good faith deposit or booking deposit
– It is usually the amount of one month’s rent. Good faith means that once the Landlord signs the Letter of Intent and accepts the deposit ; he/she has promised not to lease the property to other renters until the Tenancy Agreement is signed. Upon signing the Tenancy Agreement, this deposit is usually considered as either the first month’s rental or kept as security deposit.

Security deposit
– This is the amount kept by the Landlord as security. It is not to be paid by the Tenant until the Tenancy Agreement is signed; and only refunded to the Tenant once the lease term expires. This deposit will be refunded interest-free and the Landlord has the right to deduct all costs of damages and expenses arising from any breach of contract as stated in the clauses of the Tenancy Agreement. For every 12-month lease term, a 1-month deposit is required. (i.e. 2 months deposit is required for a 24-month lease term)

Monthly rental price
– The Letter of Intent will state the amount of the monthly rental price.

Expiry of the Letter of Intent
– This letter will need to have a clause to specify a period within which the Landlord must sign, or it will otherwise expire. The Landlord will then have to return the good faith deposit immediately.

Additional requirements
– Any additional requirements need to be stated clearly in the Letter of Intent.

Examples are : -

Diplomatic or Expatriate Clause
- Is to protect the expatriate Tenant in the event that he/she is no longer employed or transferred to another country. ( Generally it means that you can terminate the lease after 12 months by giving 2 months notice ). Your security deposit will be refunded. However, Landlords will only include this clause if the lease term is more than a year.

Furnishing
– States whether the property is rented out partially or fully furnished.

Sublet
– If the tenant intends to sublet, it should be clearly stated in the Letter of Intent.

Pets
– If the tenant has pets living with him/her on the property, it needs to be clearly stated in the Letter of Intent

A standard Letter of Intent will also state that all these additional requirements are subjected to the Landlord’s written approval ; hence you might want to have these agreed beforehand with the Landlord prior to making an offer to avoid any misunderstandings later.

Tenancy Agreement

Tenancy Agreement is an obligatory contract to lease the property. This agreement is prepared by the Landlord or his/her agent, and both the Landlord and Tenant needs to sign this contract. Tenancy Agreement is a more detailed version of the Letter of Intent. Generally, it is better to use the standard agreement template ( standard IEA agreement ) provided by the agency.

Any legal fees incurred will usually be borne by the Tenant. But, if the Landlord’s entire Tenancy Agreement is acceptable without amendments or additional clauses, then there are usually no legal fees involved.

You need to provide the Landlord with a copy of your passport and identity card ( IC ) or employment pass. This is to verify that you are entitled to stay in Singapore. It is against the law for Landlords to rent out their property to illegal immigrants. At this point, you need to pay the first month’s rental and security deposit, less the good faith deposit given with the Letter of Intent.

What to check for in a Tenancy Agreement ?
Listed are thing to look out for in a Tenancy Agreement :

Tenant’s details
– name, address, ID details

Landlord’s details
– name, address, ID details

Payment terms
– include the date when rent is due, rental mode of payment

Payment terms
– include the date when rent is due, rental mode of payment

Security deposit
– how much security deposit is paid for every 12-month lease term

Inventory of Contents
- is an attachment to the Tenancy Agreement. This is an inventory list of all the furniture and fittings in their present condition, which is included in the rented property. You will sign this document when you move into the property and the agent or Landlord will check the inventory against this list when you move out. Your agent will usually help you to check the inventory when you move in, and deal with the Landlord should there be any maintenance issues

En-bloc
– this is Singapore’s recent “enforced block sale” fever. This clause is to protect the Landlord from early termination compensation. If you are renting an older block in an apartment or condominium, do ensure that you negotiate out this clause or reduce it ; as it may become a hassle that could include additional costs if you move out within the lease term.

Termination of lease
–this will mean that a Diplomatic/Expatriate Clause is stated, and sometimes a reimbursement clause will be added. When the Diplomatic/Expatriate Clause with a reimbursement clause is exercised, Tenants have to reimburse part of the commission ( pro-rated to the remainder of the lease term ) the Landlord has paid to his/her agent.

Example : -

If you have 6 months lease left out of a 24-month lease, you will pay the Landlord 6/24 of the commission he/she paid to the agent.

Generally, a Tenancy Agreement will not have this clause because Landlords may sell the property during the lease period. In this case, the new owners have to honour the existing tenancy agreement and the Tenant will continue paying the rent to the new owner.

The standard Tenancy Agreement does not include any clause for subletting or allowing pets to live on the property. If you intend to sublet or have pets, you need to request to state this in the Tenancy Agreement. However, this is subjected to the Landlord’s approval.

You should not be troubled by the intricacies of the Tenancy Agreement, as your agent is there to help you and to explain all the clauses to you. Agents will also negotiate on your behalf. However, as a Tenant, it is very important that you understand the fundamental accountability of renting in Singapore, because Singapore’s laws can be deemed as Landlord friendly.

Landlords can get a court order to re-possess the property including seizing to sell off all the goods inside the property if the tenant fails to pay his/her rent. This is to protect the Landlord and help recover any rental or legal cost losses. This differs with many other countries whereby it could take many years to remove uncooperative tenants.

Guidelines on moving in and out

Do examine the property thoroughly against the Tenancy Agreement and the Inventory of Contents before you sign it when moving in. It is advisable to take photographs of the property and its inventories if you think it is not in the condition as stated in the documents. You should highlight to the Landlord immediately and request for it to be fixed. In doing so, you can avoid a potential misunderstanding when you are moving out.

Electricity and water connections need to be arranged by the Tenant, as Landlords will not usually provide this. You can do this prior to moving in, by calling SP Services. These connection process can take up to a few days to be ready.

If the property you are renting has piped gas ( selected areas ), you need to contact City Gas to install the gas. As for telephone lines, Singapore Telecom will connect residential lines upon your request. In Singapore, there are cable television and cable broadband Internet. You may contact Starhub Cable Vision ( SCV ) to get this installed if required.

When moving out, go through the Inventory of Contents and ensure that everything is in the same condition as it was when you moved in. Common wear and tear is tolerable ; however any damaged or lost items must be reimbursed by the Tenant. The property must be in a clean and liveable condition and all air-conditioning units serviced.

Landlords have the right to deduct any expenses out of your deposit if he/she finds defects in the inventory items, and this is very subjective based on individual judgements. Hence, as mentioned above, it is advisable to take photographs as evidence when you move in. If there were any defects, most Tenants would prefer to fix it themselves, as it is relatively cheaper than what the Landlord would deduct from your deposit. In a standard agreement, Tenants are usually only responsible to pay for repairs that do not exceed S$100 or S$150. Major repairs and maintenance should be the Landlord’s responsibility if the damages or breakdown is not due to Tenant’s carelessness.

What are the fees and commissions incurred to rent a property ?

Agent’s Commission
Agent’s Commission is paid by the Tenant if the rental is below S$2,500 per month, unless the agent is appointed as a delegate to the Tenant. Most of the time, the commission is one month’s rent for every 12 months lease term.

Landlords are also required to pay commission to the agent. The amount is the same as what the Tenant is required to pay. If there are two agents involved, then the agents will share the landlord’s commission based on mutually agreed portions.

Stamp Fee
The Tenant will pay the stamp fee. Generally, the agent will arrange for the payments to be made to the relevant government agency ( i.e. the Inland Revenue Authority of Singapore ), but the Tenant needs to pay the agent in advance or reimburse the agent later ; depending on what is agreed between the agent and Tenant in advance.

There is a standard way to calculate the stamp fee. It is based on the annual rent using the rules below :

- If the lease term does not exceed a year ; S$1 for every S$250 or part thereof of annual rent.

- If the lease term exceeds 1 year, but does not exceed 3 years ; S$2 for every S$250 or part thereof of annual rent.

- If the lease term exceeds 3 years, or has any indefinite term; S$4 for every S$250 or part thereof of annual rent.

Example : -

Rent is S$4,000 per month ( i.e. S$48,000 annually )
Lease term = 24 months
Stamp fee payable = S$48,000 / S$250 x S$2 + S$2 ( for duplicate copy ) = S$386

You can go to Inland Revenue of Singapore ( IRAS ) website for more information at http://www.iras.gov.sg

Utilities Deposit
Singapore Power Services ( SP Services ) will take a deposit before they turn on the electricity and water supply. Deposits will be billed in your first bill. It is usually between S$40 to S$800 and really depends on your citizenship status and what type of property you are renting. For foreigners, renting a private apartment will require a deposit of S$500 following the current rate.

SP Services website is http://www.spservices.com.sg

Thanks for your reading,
Hoping those tips are useful for you.

Regards

Wingcent Ning
ATG (ECG Property)
(+65) 8163 6290
wingcent@singnet.com.sg
Property-RentBuySell.Blogspot