The decision to rent a property in Singapore is always informed by factors such as budget, location, transportation, amenities, size and layout and neighborhood. The other important factor is the state of the property. Residential rental properties in Singapore include apartments, condos, cluster housing, bungalows, flats and penthouses.
Renting HDB Housing
In terms of preference, about 85% of Singaporeans live in Housing Development Board (HDB) flats while 15% live in private homes. HDB housing is particularly attractive because they are cheaper, but have fewer amenities. Individuals planning to rent HDB housing must either be Singaporean citizens, permanent residents, or eligible non-citizens. Legal non-citizens include individuals with employment passes, student passes and dependent passes among other acceptable passes. Once this is settled, the next step is negotiating and signing a tenancy lease. The process starts by submitting a letter of intent and making a good faith deposit. Before moving in, you need to sign a tenancy agreement, pay agents fees, security deposit and first month’s rent.
In recent years, the government of Singapore has been encouraging people, especially the elderly to rent out their vacant properties in order to generate extra income. If you have a room for rent, here are important tips you need to know about:
• Adopt a flexible contract – a vast majority of potential tenants will request for a shorter lease to take advantage of falling rental rates in future. This means sticking to a 2 year contract may make you lose out on the lucrative rental market.
• Work with your agent friend – you can work alongside a friend to spread the word about your property and rental incentives you want to offer. This will save you commission charges and other rates typically assessed by agents.
• Be less rigid when renting out your property – even though all of us have our own biases when it comes whom we should rent a property to. You may consider renting the property to a stranger because they may turn out to be your best friend.
• Make your room attractive – You can add small bonuses such as furnishings to make your property attractive to renters.
Rental Property Review
Singapore is a lucrative market for rental properties. This is evident in the number of units being constructed as well as incentives offered by the government. However, to take advantage of these offerings you need to be well-informed about the Singapore housing market.