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Rental Guide
Rental Guides for Tenants and LandlordDetermine Budget, Sizes of Apartment, Locations Firstly, either you based on your housing budget allocated to you by your company or you determine your own housing expenses, you determine the budget. Secondly, you have to decide what the size of the apartment you required is. And finally, you decide on the location you can chose from base on your budget and size of the apartment. Engage Professional Real Estate Agents It is not difficult to find a professional real estate who not only help you to find the right property, but also assist you in negotiating for the right price. As a professional real estate agent, he /she will able guide you through the process and make recommendations on-financing, legal representation and logistics issues (e.g. timing for moving-in). The following criteria may assist you in finding the right agency and real estate agent: a. Which agency has the largest market shares in the Private rental Markets? b. Which agency has recently won the Read Digest Trusted Brand - Gold Award? c. Which agency has recently won the Singapore Most Promising Brand Award? d. Which agency’s website is the most appealing and user friendly for buyers? e. Which agency provides you with agents who had recently transacted units in the neighbour? f. Which agency provides you with the list of agents who has an IEA Member with a Practicing Certificate for a Peace of Mind? g. Which friends or relative had transacted a property and extremely happy with their agents’ service? Once you have a list of agencies and agents, make an appointment with each one to learn more about their services. Find out if agent is willing to do a free comparative market analysis (CMA) and recommend the search plan for you. He will also ensure that all documents are in order and you are dealing with the rightful owner of the property. Use One Agent - Use only ONE agent at a time. If you use many agents at the same time, they may show you the same property. Using one agent, you will save valuable time for yourself and the agent. He will then understand your needs and requirements better after a few viewings. Only if they are incompetence, unresponsive or not showing the correct property you wanted, then start to look for another agent. Documentation Once you decide on a particular property, the real estate agent will have to prepare two documents for you, the Letter of Intent (LOI) and Tenancy Agreement (TA): 1. Letter of Intent - The 'Letter of Intent' (LOI) is a proposal from you to the landlord to lease the apartment with the conditions set by you. By signing the document the landlord accepts the conditions, which normally has been agreed verbally beforehand. The tenant typically gives the landlord one month's rental as a good faith deposit at this point. 2. Tenancy Agreement (TA) - The 'TA' is the binding contract to lease the property. It will be signed by both the tenant and the landlord. The 'TA' will state the same things as the 'LOI', but in more detail. It is advisable to use the standard tenancy agreement provided by the agencies as a template. 3. Inventory Lists - Inventory Lists is supplementary to the TA. It lists all the fittings and furniture that is rented as part of the apartment, as well as their present condition. You will need to sign on it when you move in. The contents of the property will then be checked against it when you move out. Your agent can help you with checking the inventory and will help you on dealing with the landlord to fix any problems. Letter of Intent (LOI) The 'Letter of Intent' is a proposal from you to the landlord to lease the apartment with the conditions set by you. By signing the document the landlord accepts the conditions, which normally has been agreed verbally beforehand. The tenant typically gives the landlord one month's rental as a good faith deposit at this point. The followings are the common terms used in the LOI 1. Commencement Date: Date of commencement of the lease. Some landlords may give a few days earlier to the Tenant for preparation of the unit for moving in. 2. Term of Lease – Usually a fixed terms of 12 or 24 months with the optional renewal of another 12 months at the prevailing rates after the fixed term. Most landlords prefer at least 24 months fixed terms lease. 3. Monthly rental – The monthly rent to be paid will be stated in both the LOI and TA. 4. Good faith deposit – Usually one month’s rent. This good faith deposit will be presented to landlord together with the LOI. After the landlord accepted the LOI, the deposit will form part of the security deposit as when the TA is signed. 5. Security deposit – The amount of the security deposit is depends on the lease period. It is usually one month’s for every 12 months lease. However, some landlord may request for higher security deposit when the premise or the furniture’s are brand new. This security deposit can be deducted against damages and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement. 6. Stamp Fees – The stamp fees is payable by the Tenant. 7. Diplomatic Clause - to safeguard the tenant in the event the tenant is no longer employed. Typically it states 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. 8. Furnishing - The 'LOI”' also state that the property is leased furnished, partially or unfurnished. 9. Immigration Requirements - The LOI will also state that the tenant shall at all time times ensure that all occupants of the property comply with all applicable laws for entering and staying in Singapore. The Landlord and the Tenant shall sign a Tenancy Agreement with terms and conditions to be agreed within seven (7) days from the date of the LOI. If the Tenant fails to sign the Tenancy Agreement after the terms and conditions are already agreed, the Landlord shall be at liberty to rent the above premises to another tenant and the good faith deposit tendered may be forfeited without further notice to the Tenant. Tenancy Agreement (TA) The 'Tenancy Agreement' is the binding contract to lease the property. It will be signed by both the tenant and the landlord. The 'Tenancy Agreement' will state the same things as the 'Letter of Intent', but in more detail. It is advisable to use the standard tenancy agreement provided by the agencies as a template. At this point you need to furnish the landlord with copy of your passport and employment pass or Identity Card (IC). The landlord will need to check that you are eligible to stay in Singapore as it is illegal for landlords to have illegal immigrants to stay in their property. You should check at least the following in the Tenancy Agreement: Tenant's full details – name, address, ID details Landlord's full details – name, address, ID details Payment details - including when the rent is due and how it is to be paid (either by Cheque or Interbank Giro to the landlord) Security deposit – should be 1 month’s rent for every 12 months of lease term The TA will spell out clearly on the Tenant and landlord responsibilities. In any case, you should not be afraid of the legalities and your agent can help you to explain all this and negotiate on your behalf. It is still useful to understand the basic responsibilities. Fees payable by the Tenant
Preparation for Moving-in 1. Power Supply – Your real estate will apply for you. Documents needed - signed application form, photocopied passport, employment pass and the signed Tenancy Agreement. You can also apply through the internet www.spservices.com.sg 2. Home Telephone Line, Internet broadband and Cable Vision – There are two services provide which provides the three types in a package. You can check out the website. www.singtel.com.sg or www.starhub.com.sg Inspection & Moving In When you move in, you need to inspect the property against the Tenancy Agreement and the Inventory Lists provided by the landlord. You will then need to sign the Inventory after the inspection. We would advise you to either take photos of every detail that you think is not in order, or ask the landlord to fix them immediately. This can potentially avoid a lot of problems when you are moving out. Also is a common practise in Singapore that the landlord will be responsible for any repair of all electrical appliances such as Fridge, washing machine within in a month of the start of the tenancy. Leasing Guides Procedures for Commercial Properties• Prepare Letter of Intent (LOI)• Indicate the Tenant’s request in the LOI * LOI is not legally binding • Present the LOI to landlord • (YES) If accepted, landlord will sign acceptance in the LOI and prepare the LOO (Letter of Offer). • Letter of offer can be prepared by landlord or the consultant • Landlord to sign the commission agreement. • (NO) If rejected, landlord will indicate rejection on the LOI and return to the tenant for re-negotiation • The LOI will be presented to the tenant for agreement of the terms and conditions • Once agreed, tenant will sign on LOI • Tenant also needs to prepare a good faith deposit in favour of the Landlord. (Good Faith Deposit usually amounts to one month’s gross rental which will ultimately form part of the security deposit) • Remember to ensure Landlord’s authenticity before issuing any cheques. (Ownership search can be done in the office or log on to www.inlis.gov.sg ) • Once the landlord receive the LOO and the good faith deposit, the landlord will prepare a tenancy agreement (TA) through a lawyer • 2 sets of TA to be prepared for the landlord and the tenant to sign. • Prepares 2 sets of inventory list for all the fixtures, fittings, furniture and appliances in the premises. • Inform the tenant to prepare the security deposit, the stamping fee before signing the TA. • Once the TA is signed, collect the 1st month rent and security deposit from the tenant and hand them over to the landlord and then collect the commission from the landlord. • Make copies of tenant’s/occupiers’ passport and work passes for Landlord’s reference. • Passport and work passes can be used for utilities/telecom application. Ensure verification has been done against the original documents and with the necessary governmental departments and their respective employers. • Verification of passes can be done online. Log on to www.mom.gov.sg or www.ica.gov.sg • Prepare application forms for Telecom/Utilities. • Ministry of Manpower (MOM) Tel: 64385122 (work passes) • Immigration Checkpoint Authority (ICA) Tel: 63916100 (immigration passes) • Submit for e-stamping • The tenant will need to apply for the utilities and telephone accounts. • On the day of handing over the premises, go through the inventory with the tenant and prepare a handing over letter for them to sign after the inspection. Are you a Foreigner? Q: I am a professional/ specialist. Which Singapore agency should I write to if I wish to seek employment in Singapore? A: For details, please click to see the Contact Singapore website. You may also get in touch with the Contact Singapore Centres overseas or surf the EDB website. Q: Who is eligible to apply for an Employment Pass? A: Any foreigner may apply for an Employment Pass to be employed or to do business in Singapore if he/ she fulfil the eligibility criteria. For details please click to see the Singapore Ministry of Manpower website or the Contact Singapore website Q: What must I do if my spouse or child is relocating to Singapore with me? A: An Employment Pass holder may apply Dependant's Passes for his / her spouse, unmarried or legally adopted children under 21 years of age. Q: Can a Dependant's Pass holder work in Singapore? A: Dependant's Pass holder can apply for a Letter of Consent from the MOM if he wishes to work in Singapore. The application form can be downloaded from the MOM Homepage Q: How can I find out more about terms & conditions of employment in Singapore? A: You can look up the Ministry of Manpower website www.mom.gov.sg for a list of common questions on terms & conditions of employment in Singapore. Q: Where do I start if I am looking for accommodation in Singapore? A: If you are working in Singapore for a contract period of more than a year, we strongly recommend you to engage one real estate agent which will save you time and hassle as the agent would have better understanding of your requirements after the first appointment. Q: How soon so I start searching for my apartment? A: It is recommended that you start your search plan about 2 months before you actual commencement date, so that you have time to compare and narrow to the right apartment without time pressure. Q: Do Landlord prefers Company Lease or Personal Lease? A: Most Landlords prefers a company lease as compare lease. However, the mass market apartment is mostly rented to personal lease. Q: How much funds do I need to prepare for the lease? A: Typically a 2 years lease will require you to pay upfront of two months rental deposit and one month rental in advance. You may need to pay agency fee depending on the rental amount. See next question. Q: Is there any agency fee or commission if I engage Real Estate Agent in Singapore for my housing search, documentations and other assistance? A: Yes, there is a fee payable. The fees is half month (1/2) gross rental for less than twelve (12) month's lease or One (1) month's gross rental for lease of twelve (12) months or up to twenty-four (24) months. For more, please view Agents Commission Guidelines below. Q: Any other fees I need to pay? A: You also need to make payment for the stamp duty, TV licences. Most landlord expects the Tenant to have an Air-conditioner servicing contract to ensure that their air-conditioners are maintained regularly. Q: I have found a suitable apartment or house. What is next? A: Inform your real estate agent of your interest. Thereafter, the real estate will prepare a Letter of Intent (LOI), stating your interest, rental amount and requirements. After you have signed, the agent will pass the LOI to the rightful landlord together with one month rent as good faith deposit. See more at our Rental Guides Q: What are the transportation costs in Singapore? A: Public transports like the MRT, bus are pretty affordable. Whereas the price you pay for buying a car in Singapore is hefty. More detailed information can be found at our Singapore Travel Guide. Q: What is Central Provident Fund (CPF)? A: CPF is a comprehensive social security savings scheme to which both employers and employees have to contribute. CPF takes care of members' needs in retirement, healthcare, home ownership, family protection and asset enhancement. Several innovative schemes were introduced over the last five decades. For details, please click to see the CPF Board website www.cpf.gov.sg. Q: Do foreigners have to contribute to the CPF? A: Foreigners only need to begin their monthly contributions to the CPF after having assumed Permanent Resident (PR) status. During the first two years as a permanent resident, contribution rates to CPF are reduced. Q: Can permanent residents withdraw their Central Provident Fund savings? A: PR can withdraw their savings at age 55, after a Minimum Sum in their Retirement Account is set aside. Members can also withdraw their CPF savings if they are permanently incapacitated or will leave Singapore and West Malaysia permanently. If members do return to Singapore, they must reimburse the CPF Board for the amount they had withdrawn with interest. Q: I am a foreigner who used to work in Singapore. I have now returned to my own country. How can I apply to withdraw my CPF contributions? A: If you have left Singapore and West Malaysia permanently and have no intention of returning for further employment or residence, you may apply for the withdrawal of your CPF savings. To do so, you have to complete the CPF Withdrawal form (CPF-LM) and return it to CPF Board. You can make your request for the form via the CPF Homepage. For details of the application, you may wish to contact CPF at Tel: (65) 6227-1188 (press 5) or email: Retirement@cpf.gov.sg. Q: How do I open a bank account in Singapore? A: To open an account in Singapore, you will need copies of your passport, employer's letter, and a statement from a bank in your home country. Other than three local banks DBS, OCBC and UOB, almost all major banks are represented here. Singapore has extensive facilities of automated teller machines (ATMs) and a cashless payment system called NETS and also Cash Card System for your paying convenience. Q: Is Credit/Charge Cards widely used in Singapore? A: Credit cards are widely accepted in Singapore. Restaurants, Hotels, Retailers, even taxi readily accept international credit cards. Q: Where can I change my money to Singapore currency? A: At Changi Airport, all Banks and Hotels can change money and most shopping complexes have a licensed money changer. Most banks open from 9.30am to 3pm on weekdays and 9.30am to 12.30am on Saturdays. Some of the local Banks open even on Sunday. Agency Professional Fees and Commission GuidelinesIntroduction • The remuneration system for Agents is based on the provision of service and / or upon successful transaction. • The agents' commission guideline is taking reference from the Government Gazette dated 22 February 1974 and the current market practice established over the last decade.  • This document stipulates the professional fee / commission for Agents based on standard services rendered on property transactions. • This scale of professional fee / commission is not intended to restrict or interfere with any private arrangements which Agents may have with their clients. • Agreements and undertakings in all transactions shall be made between clients and the real estate agency and not with the individual Agent. • Payment for commission shall be made payable to the real estate agency and not to the individual Agents; • The clients and Agencies amongst themselves shall document / communicate at the outset, their agreement on commission, costs and disbursements. The documentation / communication shall also include the scope of works, duties and undertakings by the Agencies; • Agents shall conduct themselves at all times in a professional manner that would not prejudice the standards and reputation of their agency or the real estate industry. Interpretation In this document, “Agents” mean individual real estate agents who represent their agency; “Clients” means all those who engage, use or retain the services of an Agency; “Professional fee / commission” means all forms of remuneration including commission, Brokerage fee, finder’s fee, service fee, disbursements or any other sum payable by clients to The Agency; “Gross rental” means total monthly rental (including rental of furniture, maintenance charge and sinking fund, where applicable); “HDB” means the Housing and Development Board constituted under the Housing and Development Act (Cap 129); “HUDC flats” means flats in the housing estates known as HUDC housing estates which maintenance and management are not under the Housing and Development Board (HUDC Housing Estates Act – Cap 131); Professional Fee / Commission • Sale by Private Treaty, Auction or Tender (All types of properties except HDB Resale Flats and Non-Privatized HUDC Flats) • Sale of HDB Resale Flats and Non-Privatized HUDC Flats • Rental (All types of properties except HDB Flats and Rooms) • Rental of HDB Flats and Rooms • Assignment (All types of properties) • Management (All types of properties)
 An Agent shall not accept any commission from both the Vendor and Purchaser in the same transaction without the prior knowledge or written consent of the Vendor and Purchaser of the transaction. Commission shall become due immediately upon completion of sale and purchase or as otherwise agreed between the parties.
An Agent shall not accept any commission from both the Vendor and Purchaser in the same transaction without the prior knowledge or written consent of the Vendor and Purchaser of the transaction. Commission shall become due immediately upon completion of sale and purchase or as otherwise agreed between the parties. In a co-brokerage, the agents shall collect the commission from their respective clients as in the table above or as otherwise agreed between the parties.
The professional fee is chargeable regardless of the rental amount. An Agent shall not accept any commission from both the Landlord and Tenant in the same transaction without the prior knowledge or consent of the Landlord and Tenant of the transaction. Commission shall become due immediately upon execution of the tenancy agreement by landlord and Tenant. An Agent shall not accept any commission from both the Landlord and Tenant in the same transaction without the prior knowledge or consent of the Landlord and Tenant of the transaction. Commission shall become due immediately upon execution of the tenancy agreement by Landlord and Tenant. In a co-brokerage, the co-broking agents shall collect the commission from their respective clients as in the above or as otherwise agreed between the parties.
An Agent shall not accept any commission from both the Assignor and Assignee in the same transaction without the prior knowledge or consent of the Assignor and Assignee of the transaction. Commission shall become due immediately upon completion of the assignment.
Commission is due to Agency monthly in advance upon receipt of rental from Tenant. For Management Corporations, commission payable would generally be on an accrued basis. The Agency may, by prior agreement with client, claim disbursements for expenses such as long distance phone calls (in the case of overseas client), postage and stationery, transport costs, etc. Other Charges The agency / agents may also impose charges other than the agreed commission, provided that such charges are agreed to between the parties. Forfeited Deposit In the case of an aborted sale or tenancy, the commission shall be one half (1/2) of the amount of the deposit forfeited by the party plus GST subject to a maximum sum equivalent to the agreed commission plus GST. Goods & Services Tax (GST) - The agency shall charge their clients and co-brokers the prevailing GST even if the other party / Agency are not GST-registered. Professional Services for customers All our customers are offered with a full range of services to ensure that their experience with us is a pleasant one. We are striving towards customer satisfaction and a company that consumers can trust. We provide: • Home Warranty Plan • HDB Deposit Guarantee Programme • Home Sellers’ Guide • Service Excellence Report • Customer Feedback Survey • Customer support centre • In house legal support • In house disciplinary board • In house mediation board • Professional Indemnity insurance for agents to protect the customers • Our agents are issued with Professional Practitioner Certificate and Professional Proficiency Certificate and must fulfill Continuous Professional Development (CPD) points. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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