A Guide to Property Rental in Singapore

Determine 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.

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 http://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. http://www.singtel.com.sg or http://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.