Tenants & Landlords

A non-exhaustive guide to the renting/leasing process for Tenants & Landlords in Singapore.

Letter of Intent (LOI)

The LOI is a document that outlines a preliminary agreement between both parties.

The Tenant/Tenant's Agent issues the LOI along with a Good Faith Deposit to express interest in the renting of the unit/property described. With the LOI, the landlord will stop looking for other prospective Tenants.

01

Checks & Acceptance

Both parties are advised to check property ownership and citizenship status against the respective validity and eligibility conditions of renting/leasing. The Landlord signs and agrees to the terms in the LOI.

02

Tenancy Agreement (TA)

The Landlord's agent issues a Tenancy Agreement to the prospective Tenant and proceeds to perform one final set of checks and acceptance.

03

3 Steps Before issuing a Letter of Intent (LOI)

1. Check the Ownership of the Property

Make sure the Landlord is the actual owner. Do not accept any excuses or reasons why the proof of ownership cannot be shown to you. This is to prevent any fraudulent transactions or possible schemes to swindle your deposit.

Get the Landlord to login to:
(1) For HDB Properties; HDB Account using Singpass
(2) For Private Properties, SLA's MyProperty using Singpass
(3) You may also check the ownership of a property for S$2.50 at MyTax Portal

2. What does putting forth the Good Faith Deposit mean?

The Good Faith Deposit is a sum equivalent to 1-month deposit put down for every 1-year of intended lease term. For example, if the monthly rent is $4,000/month and the Tenant intends on renting the unit for 2-years, the Good Faith Deposit shall be $4,000 x 2 (years) = $8,000. This money is paid by the Tenant upon submission of the LOI as a show of serious intent on the lease. Upon reception of the LOI and Good Faith Deposit, the Landlord should stop looking for prospective Tenants. Although unlikely, the Landlord may still reject the application at this point.

Standard Conditions for the Good Faith Deposit:
(1) If the Landlord decides to withdraw from the terms of the LOI, the Good Faith Deposit should be returned to the Tenant.
(2) If the Tenant decides to withdraw from the agreement, the Landlord keeps the Good Faith Deposit.
(3) If the TA is eventually signed, this amount can be converted into the part or full sum of the Security Deposit.

3. What should be included in the Letter of Intent (LOI)?

(1) Particulars of both Parties
(2) Address of the Unit/Property to be leased
(3) Agreed Monthly Rent Amount
(4) Start/End Date of the Lease Term
(5) Duration of the Lease Term
(6) Date of Issue for the Tenancy Agreement
(7) Due Date for both Parties to sign the Tenancy Agreement
(8) Good Faith Deposit amount and subsequent Security Deposit
(9) Conditions in which the Good Faith Deposit is to be returned to the Tenant/Forfeited

The LOI should also contain all of your unique changes to clauses and conditions which you may want edited from a standard Tenancy Agreement (TA).

Clauses and Conditions you may find in a Standard Tenancy Agreement (TA)

Diplomatic Clause
This clause allows immigrants to break the tenancy period of your dwelling unit in the case of unexpected retrenchment without penalty for the further unoccupied months. After a minimum stay of 12-months, should you find yourself unemployed and requiring to leave Singapore. You may serve a 2-month notice before terminating your TA without further payments.
Security Deposit
This typically amounts to the sum of 1-month per 12-months lease. The Security Deposit is a collateral for the Landlord to use in case the Tenant does not comply with any of the conditions in the TA after being served a written notice to rectify the matter. These funds shall not be used to offset any months' rent.
Maintenance & Repair
Minor Maintenance and Repair (up to a specified amount) shall be the Tenant's responsibility after the Problem-Free Period (typically 1-month) is over. The cost of Major Maintenance and Repair works will be shared between the Tenant and Landlord beyond the Tenant's specified sum.
Inventory List
This is a list of all the items contained within the leased unit, and is to be prepared in a separate annexure. This list provides both parties with a written reference of the existing furniture and fittings for lease should any article be missing or damaged during the lease term.
Problem-Free Period
This is typically a 1-month period starting from the date of moving in for the Tenant to identify and notify the Landlord of any defects to be made good. The Landlord has to repair such defects at their own cost during this period. After which, the Tenant will be responsible for minor repairs, up to an agreed cost.
Condition Report
A Condition Report may be created by the Tenant and endorsed by the Landlord during the Problem-Free Period to note the condition of furniture and fittings. This annexure functions as a maintenance checklist during regular checks and to determine the Security Deposit claim upon the eventual cessation of the lease term.
Access to Unit
Should the Tenant be negligent in the maintenance of the property; with prior notice, the Tenant shall permit the Landlord or their agents, surveyors and workmen to: (1) inspect the condition of the unit; (2) execute repairs, alterations or improvements; or (3) comply with statutory checks and maintenance.
Maintenance of Air-conditioners
A quarterly air-condition service contract would typically be taken up by the Tenant. In the case of an air-conditioner unit breakdown due to the Tenant's negligence, the Tenant shall be liable to the entire cost of fixing and replacing any spare parts.
No Structural Additions or Alterations
The Tenant shall not make any structural additions or alterations to the leased unit without the written consent of the Landlord and relevant authorities' consent which may be required.
No Assignment or Subletting
The Tenant shall not assign or sublet the unit without the written consent of the Landlord and relevant authorities that may be concerned. This includes allowing an acquaintance or relative to stay in the unit in place of the members stated in the TA for any period of time without consent from the Landlord.
No Recovery for Self-help Remedy
If the Tenant takes up repair and maintenance costs for defects where the Landlord is obliged to cover without the prior written consent and notifying the Landlord to rectify the defects; the Tenant shall not be entitled to recover these costs from the Landlord.
Quiet Enjoyment
As long as the agreed monthly rent in the TA is paid, the Tenant maintains the right to Quiet Enjoyment to the leased unit; with the exception of emergency situations, or when the Landlord and their contractors give sufficient prior notice to enter for legitimate reasons.
Right to Terminate
The Landlord reserves the right to terminate the TA without penalty upon the breach of specified breach conditions, or the disqualification of the Tenant's citizenship or employment status, where applicable.
Right to Re-Entry
Upon termination of the TA, the right to Quiet Enjoyment shall not apply, and the Landlord may re-enter the premises without breach of any conditions.
Default in Rent
A 10% interest may be charged on top of the monthly rent amount if the Tenant fails to pay after 7-days of the rent becoming due.
Dispute Resolution
Mediation or Arbitration shall be considered as a dispute resolution method first, should any dispute(s) occur. Only after such remedies are attempted and falls through, shall either party approach the appropriate Singapore Courts as a resulting dispute resolution measure.