Types of property offered to hire in Singapore
There are many options to choose from when considering the differing kinds of property available to rent. It is useful to familiarize oneself with these options first. The types of property available include:
1. Landed property
Depending on the location and the scale of the house, rents for landed property can vary greatly from $10,000 to $30,000 a month. Landed property can be divided up into 3 main types:
i. Terrace Houses. These are houses that share common walls with neighbours on each side, unless at the end of a row.
ii. Semi-detached Homes. These homes share one wall in common with a neighbour.
iii. Detached Houses/Houses. These houses don't share any wall with other houses.
2. High rise buildings
i. HDB Apartments (complete unit or bedroom alone)
Note that subletting an entire flat requires authorization from the Housing Development Board, and that subletting a bedroom is only really possible for 3-bedroom flats or bigger. An entire unit would cost $2,000 to $3,000 every month on average to rent in Singapore, while a room can cost between $500 and $1,000.
ii. Room rental
The monthly value of sharing an apartment ranges from $500 to $1,500, depending on whether or not you are leasing a standard or main bedroom. It is vital to agree beforehand on issues such as the sharing of electricity, water and telephone bills and privacy rights.
iii. Service Flats
These sometimes have gymnasiums, cafeterias, business centers and cleaning services. The monthly rental costs for these usually range all the way from $2,500 to $6,000 for a one-bedroom apartment, and $5,000 to $10,000 for a two-bedroom flat.
iv. Condos
These are properties with facilities such as security, gyms and pools. Smaller condominiums may not have as many facilities. Monthly rental costs for condominiums typically range between $2,500 and $10,000.
v. Penthouses
Penthouses commonly have their own pools, rooftop gardens and patios. They top most of the tall buildings in Singapore. Rental costs typically range all the way from $10,000 to $30,000 monthly.
Rental conditions
Rental residences come fully furnished, partially furnished or unfurnished.
Well kitted out means the loft comes with a complete set of furniture, appliances (e.g. TV, microwave cooker) and white products (e.g. Chiller, washer).
Partially furnished means the flat includes the essential white goods, lights and curtains, but no or tiny furniture.
Unfurnished means the house is renovated but bare, perhaps only with the lights fitted. Of course it is usually possible to request for the landlord to add items "these can all be bartered before you sign the rental agreement and can be integrated into the rent charges.
7 Steps to Hire in Singapore
When you are acquainted with the options available, you can take these steps to hire the property you have an interest in.
1. Decide on your position
Having a budget under consideration will help you choose the type of property to rent, as well as its location. Make sure your budget is flexible enough to stop circumstances where you are unable to find a home that's both inside your means as well as in a specific positioning of your preference.
2. Decide on the kind of property and the location
Factors to consider when making this call include the facilities you require, the public transport options, the age and number of family members, the distance to office or school districts and the comforts you want, for example shops and libraries.
3. Gather a pool of particular options
First, examine classified advertisements as well as property websites to come up with a listing of potential properties that fit your choices on location, budget and other things. You may engage a few agents to help you in your search.
4. Arrange for property viewings
Visit the shortlisted properties and take stills and notes on each to help you make a decision later. It is useful to visit at different times of the day to get an idea of the neighbourhood. You can then shortlist further and do a second viewing if necessary. Make a note of any repairs or additional furniture you want to have before you move in.
5. Sign the Letter of Intent
Once you decide on the home you wish to hire you typically then sign a Letter of Intent (LOI), which states your plan to lease, as well as any necessities you have. Focus on the following elements of the LOI:
- The Diplomatic/Repatriation Clause. This sometimes allows you to end the contract after 2 months ' notice and claim your security deposit, in the event that you're transferred to another country by your company or lose your job.
- Booking/Good Faith Deposit. This is generally one month's rent. After the LOI has been signed and this has been paid, the owner cannot hire the property to others.
- Security Deposit. This is generally one month's hire every year of lease. Once the lease term is over, this amount will be refunded. If any expenses arise thanks to the renter breaching the terms in the Rental Agreement (e.g. Damages to the property), the owner can take a reasonable amount from this deposit.
- Lease Term. The standard lease term is one year or more, and the contract may include a renewal option, which often needs two or three months ' advance notice to exercise.
- Requirements. State your wants (such as new furniture) clearly. Once the LOI is signed, the owner is required to provide all that's requested for.
6. Sign the Tenancy Agreement
After signing the LOI and putting down a deposit, you'll then sign the Rental Agreement. You will also need to pay the advance hire along with the signing. Be aware of the following components:
- Ensure that terms concluded in the LOI are also present in the Tenancy Agreement.
- Installation and monthly charges. You are generally accountable for the installation charges and monthly bills for the water, gas and electricity supply, residential phone line, cable television and broadband web connection. Occasionally you can barter a few of these into the contract, e.g. Cable television or Internet bill.
- Upkeep and Repairs. You'll be accountable for fix works that do not surpass a certain quantity, often $100-200, unless the mend required is due to your laxity. Also, certain upkeep services such as gardening and pool cleaning will be at your expense.
Note this Agreement will have to be stamped by the Inland Revenue Authority of Singapore before it is regarded as a valid contract. The cost for this is often borne by the tenant. For leases of one year or less, the stamp duty owing is the rental amount multiplied by 0.048. For leases of more than one year to three years, it is the rental amount multiplied by 0.096.
Also you may have to pay the agent half a month's to a month's commission dependent on the lease term.
7. Taking over the property
Check the inventory list to make sure that all items are present, and note if there are any defects. Also make sure that you collect a total set of keys.
Hope that you enjoyed reading this Singapore property market article!
There are many options to choose from when considering the differing kinds of property available to rent. It is useful to familiarize oneself with these options first. The types of property available include:
1. Landed property
Depending on the location and the scale of the house, rents for landed property can vary greatly from $10,000 to $30,000 a month. Landed property can be divided up into 3 main types:
i. Terrace Houses. These are houses that share common walls with neighbours on each side, unless at the end of a row.
ii. Semi-detached Homes. These homes share one wall in common with a neighbour.
iii. Detached Houses/Houses. These houses don't share any wall with other houses.
2. High rise buildings
i. HDB Apartments (complete unit or bedroom alone)
Note that subletting an entire flat requires authorization from the Housing Development Board, and that subletting a bedroom is only really possible for 3-bedroom flats or bigger. An entire unit would cost $2,000 to $3,000 every month on average to rent in Singapore, while a room can cost between $500 and $1,000.
ii. Room rental
The monthly value of sharing an apartment ranges from $500 to $1,500, depending on whether or not you are leasing a standard or main bedroom. It is vital to agree beforehand on issues such as the sharing of electricity, water and telephone bills and privacy rights.
iii. Service Flats
These sometimes have gymnasiums, cafeterias, business centers and cleaning services. The monthly rental costs for these usually range all the way from $2,500 to $6,000 for a one-bedroom apartment, and $5,000 to $10,000 for a two-bedroom flat.
iv. Condos
These are properties with facilities such as security, gyms and pools. Smaller condominiums may not have as many facilities. Monthly rental costs for condominiums typically range between $2,500 and $10,000.
v. Penthouses
Penthouses commonly have their own pools, rooftop gardens and patios. They top most of the tall buildings in Singapore. Rental costs typically range all the way from $10,000 to $30,000 monthly.
Rental conditions
Rental residences come fully furnished, partially furnished or unfurnished.
Well kitted out means the loft comes with a complete set of furniture, appliances (e.g. TV, microwave cooker) and white products (e.g. Chiller, washer).
Partially furnished means the flat includes the essential white goods, lights and curtains, but no or tiny furniture.
Unfurnished means the house is renovated but bare, perhaps only with the lights fitted. Of course it is usually possible to request for the landlord to add items "these can all be bartered before you sign the rental agreement and can be integrated into the rent charges.
7 Steps to Hire in Singapore
When you are acquainted with the options available, you can take these steps to hire the property you have an interest in.
1. Decide on your position
Having a budget under consideration will help you choose the type of property to rent, as well as its location. Make sure your budget is flexible enough to stop circumstances where you are unable to find a home that's both inside your means as well as in a specific positioning of your preference.
2. Decide on the kind of property and the location
Factors to consider when making this call include the facilities you require, the public transport options, the age and number of family members, the distance to office or school districts and the comforts you want, for example shops and libraries.
3. Gather a pool of particular options
First, examine classified advertisements as well as property websites to come up with a listing of potential properties that fit your choices on location, budget and other things. You may engage a few agents to help you in your search.
4. Arrange for property viewings
Visit the shortlisted properties and take stills and notes on each to help you make a decision later. It is useful to visit at different times of the day to get an idea of the neighbourhood. You can then shortlist further and do a second viewing if necessary. Make a note of any repairs or additional furniture you want to have before you move in.
5. Sign the Letter of Intent
Once you decide on the home you wish to hire you typically then sign a Letter of Intent (LOI), which states your plan to lease, as well as any necessities you have. Focus on the following elements of the LOI:
- The Diplomatic/Repatriation Clause. This sometimes allows you to end the contract after 2 months ' notice and claim your security deposit, in the event that you're transferred to another country by your company or lose your job.
- Booking/Good Faith Deposit. This is generally one month's rent. After the LOI has been signed and this has been paid, the owner cannot hire the property to others.
- Security Deposit. This is generally one month's hire every year of lease. Once the lease term is over, this amount will be refunded. If any expenses arise thanks to the renter breaching the terms in the Rental Agreement (e.g. Damages to the property), the owner can take a reasonable amount from this deposit.
- Lease Term. The standard lease term is one year or more, and the contract may include a renewal option, which often needs two or three months ' advance notice to exercise.
- Requirements. State your wants (such as new furniture) clearly. Once the LOI is signed, the owner is required to provide all that's requested for.
6. Sign the Tenancy Agreement
After signing the LOI and putting down a deposit, you'll then sign the Rental Agreement. You will also need to pay the advance hire along with the signing. Be aware of the following components:
- Ensure that terms concluded in the LOI are also present in the Tenancy Agreement.
- Installation and monthly charges. You are generally accountable for the installation charges and monthly bills for the water, gas and electricity supply, residential phone line, cable television and broadband web connection. Occasionally you can barter a few of these into the contract, e.g. Cable television or Internet bill.
- Upkeep and Repairs. You'll be accountable for fix works that do not surpass a certain quantity, often $100-200, unless the mend required is due to your laxity. Also, certain upkeep services such as gardening and pool cleaning will be at your expense.
Note this Agreement will have to be stamped by the Inland Revenue Authority of Singapore before it is regarded as a valid contract. The cost for this is often borne by the tenant. For leases of one year or less, the stamp duty owing is the rental amount multiplied by 0.048. For leases of more than one year to three years, it is the rental amount multiplied by 0.096.
Also you may have to pay the agent half a month's to a month's commission dependent on the lease term.
7. Taking over the property
Check the inventory list to make sure that all items are present, and note if there are any defects. Also make sure that you collect a total set of keys.
Hope that you enjoyed reading this Singapore property market article!
About the Author:
Propwise.sg, a top Singapore property blog, is dedicated to helping you understand the real estate market and make better decisions. Visit us to read more Singapore property market articles.
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