Guidelines to Leasing in Singapore
Relocating To Singapore for Expatriates
Probably the last thing you need while trying to adjust to your new surroundings is the considerable hassle of finding a new home. A more concentrated approach is being taken in relation to housing expatriates today. After all, settling into a new place involves more than just acquiring suitable accommodation.
Actually, as far as Asia is concerned, Singapore is a rather good place for English or Mandarin speaking expatriates to seek accommodation. For one thing, no huge language problems loom to complicate negotiations or make contracts forbidding documents.
Before approaching any property agents, you should have an idea of your needs and preferences. Your first step should be to draw up a list of personal options. Do you require short-term or permanent accommodation? What’s your budget? Where is the location you prefer? What's best for you and your family?
Probably the last thing you need while trying to adjust to your new surroundings is the considerable hassle of finding a new home. A more concentrated approach is being taken in relation to housing expatriates today. After all, settling into a new place involves more than just acquiring suitable accommodation.
Actually, as far as Asia is concerned, Singapore is a rather good place for English or Mandarin speaking expatriates to seek accommodation. For one thing, no huge language problems loom to complicate negotiations or make contracts forbidding documents.
Before approaching any property agents, you should have an idea of your needs and preferences. Your first step should be to draw up a list of personal options. Do you require short-term or permanent accommodation? What’s your budget? Where is the location you prefer? What's best for you and your family?
Renting Guide
A) Budget
How much am I allocating for my housing in Singapore? Will it be a personal lease or a Corporate lease? How much should the maximum amount be? Give yourself a flexible range so you will not stuck in a situation and not able to find a place with a firm budget, in an area or apartment that you like. Budgeting yourself will also evaluate which are the areas and apartments suitable for you.
B) Location
Location is very important and it will determine the convenience for you and your family. Take into consideration the place where you work, where your spouse works, and where your kids will study. Then situate yourself in the middle of these places, so you will not have to travel so far to work or the children will not have to travel too far to school.
C) Facilities
Different people have different needs and wants, therefore, you will need to evaluate your needs and wants like what kind of facilities you would require. A lap pool with a Jacuzzi, a tennis court or basketball court? A gym? After concluding what you require, it will be easier to find what you need.
D) Amenities
Consider the accessibility to amenities, like do you require any public transportations nearby? Or do you need supermarkets nearby. These are also critical to your daily life, as they will pose convenience.
Finally, settle for a home once your requirements are met. Avoid the "view as many properties" mentality otherwise you run the risk of missing out on a home you targeted and have to settle for one which is second best or worst.
The Renting & Leasing Process:
1. Select an agent
Optional, but recommended. A professional agent will not only help you to find the right property, but also ensure you get the right location & price, ensure all small details are covered prior to renting, guide you through the documentation process and taking & handing over of property.
2. Location and Price
Deciding on the right location is very important and it will determine the convenience for you and your family. Price - Budgeting yourself will also evaluate the size areas of the apartments or houses that are suitable for you.
3. Documentation
After you have decided to rent your ideal property and you will need to prepare the following:
- Photocopied passport
- Photocopied employment pass
- One month's rental for the good faith deposit
Your agent will then prepare the necessary documents for you such as the Letter of Intent and Tenancy Agreement.
4. Letter of Intent
The Letter of Intent, (LOI), is a letter proposing your intention to lease the property. It will also state your requirements to the landlord. You should take note of the following:
a. Diplomatic Clause
This clause is to safe-guard you in the event that your employment is ceased or you are transferred to another country such that you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you. Please note that most landlords will only include the diplomatic clause if the lease is more than a year.
b. Good faith Deposit
This is the booking deposit; usually the amount is one month's rent. After the landlord signed the Letter of Intent and accept this deposit, he cannot rent the property to other party. This deposit will become part of the security deposit or advance rental after the Tenancy Agreement is signed.
c. Security Deposit
The amount of the security deposit is usually stated in the Letter or Intent. The standard practice in Singapore is usually one month's rent for every year of lease. It will only be payable upon signing of the Tenancy Agreement. When the lease term ends, the deposit will be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.
d. Term of Lease
In Singapore, the standard lease period is more than 1 year, with or without an option to renew the lease. The lease renewal is usually for another 1 to 2 years. For the lease renewal option, the landlord would normally require that you give 2 or 3 months' advance notice of your intention to renew. Most landlords will not accept leases that are less than 1 year.
e. Your Requirements
Ensure that all your requirements and requests are clearly stated in the Letter of Intent. For example, such as requesting a new sofa, new bed or new washing machine etc. After the landlord had signed the Letter of Intent, he is bound by the Letter to provide you the requests.
5. Tenancy Agreement
After the Letter of intent is duly signed, the landlord’s agent will prepare the Tenancy Agreement (TA). There is usually no legal fees incurred for the drawing up of the agreement if the TA is provided by the Landlord's realtor's agency. You will need to prepare the rest of the security deposit and advance rental upon signing of the Tenancy Agreement.
- For 1 year lease - 1 month's deposit and 1 month's advance rental.
- For 2 years lease - 2 month's deposit and 1 month's advance rental.
6. Taking Over the Property
The landlord will prepare an Inventory List on or before the day of handing over. Check the items listed in the inventory. Check all electrical appliances, air-con, lightings, water heater etc. If there is anything unsatisfactory, note it down on the inventory. Even brand new houses have defects, therefore be understanding and allow the landlord to rectify it within a reasonable period.
A) Budget
How much am I allocating for my housing in Singapore? Will it be a personal lease or a Corporate lease? How much should the maximum amount be? Give yourself a flexible range so you will not stuck in a situation and not able to find a place with a firm budget, in an area or apartment that you like. Budgeting yourself will also evaluate which are the areas and apartments suitable for you.
B) Location
Location is very important and it will determine the convenience for you and your family. Take into consideration the place where you work, where your spouse works, and where your kids will study. Then situate yourself in the middle of these places, so you will not have to travel so far to work or the children will not have to travel too far to school.
C) Facilities
Different people have different needs and wants, therefore, you will need to evaluate your needs and wants like what kind of facilities you would require. A lap pool with a Jacuzzi, a tennis court or basketball court? A gym? After concluding what you require, it will be easier to find what you need.
D) Amenities
Consider the accessibility to amenities, like do you require any public transportations nearby? Or do you need supermarkets nearby. These are also critical to your daily life, as they will pose convenience.
Finally, settle for a home once your requirements are met. Avoid the "view as many properties" mentality otherwise you run the risk of missing out on a home you targeted and have to settle for one which is second best or worst.
The Renting & Leasing Process:
1. Select an agent
Optional, but recommended. A professional agent will not only help you to find the right property, but also ensure you get the right location & price, ensure all small details are covered prior to renting, guide you through the documentation process and taking & handing over of property.
2. Location and Price
Deciding on the right location is very important and it will determine the convenience for you and your family. Price - Budgeting yourself will also evaluate the size areas of the apartments or houses that are suitable for you.
3. Documentation
After you have decided to rent your ideal property and you will need to prepare the following:
- Photocopied passport
- Photocopied employment pass
- One month's rental for the good faith deposit
Your agent will then prepare the necessary documents for you such as the Letter of Intent and Tenancy Agreement.
4. Letter of Intent
The Letter of Intent, (LOI), is a letter proposing your intention to lease the property. It will also state your requirements to the landlord. You should take note of the following:
a. Diplomatic Clause
This clause is to safe-guard you in the event that your employment is ceased or you are transferred to another country such that you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you. Please note that most landlords will only include the diplomatic clause if the lease is more than a year.
b. Good faith Deposit
This is the booking deposit; usually the amount is one month's rent. After the landlord signed the Letter of Intent and accept this deposit, he cannot rent the property to other party. This deposit will become part of the security deposit or advance rental after the Tenancy Agreement is signed.
c. Security Deposit
The amount of the security deposit is usually stated in the Letter or Intent. The standard practice in Singapore is usually one month's rent for every year of lease. It will only be payable upon signing of the Tenancy Agreement. When the lease term ends, the deposit will be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.
d. Term of Lease
In Singapore, the standard lease period is more than 1 year, with or without an option to renew the lease. The lease renewal is usually for another 1 to 2 years. For the lease renewal option, the landlord would normally require that you give 2 or 3 months' advance notice of your intention to renew. Most landlords will not accept leases that are less than 1 year.
e. Your Requirements
Ensure that all your requirements and requests are clearly stated in the Letter of Intent. For example, such as requesting a new sofa, new bed or new washing machine etc. After the landlord had signed the Letter of Intent, he is bound by the Letter to provide you the requests.
5. Tenancy Agreement
After the Letter of intent is duly signed, the landlord’s agent will prepare the Tenancy Agreement (TA). There is usually no legal fees incurred for the drawing up of the agreement if the TA is provided by the Landlord's realtor's agency. You will need to prepare the rest of the security deposit and advance rental upon signing of the Tenancy Agreement.
- For 1 year lease - 1 month's deposit and 1 month's advance rental.
- For 2 years lease - 2 month's deposit and 1 month's advance rental.
6. Taking Over the Property
The landlord will prepare an Inventory List on or before the day of handing over. Check the items listed in the inventory. Check all electrical appliances, air-con, lightings, water heater etc. If there is anything unsatisfactory, note it down on the inventory. Even brand new houses have defects, therefore be understanding and allow the landlord to rectify it within a reasonable period.
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