Renting a new place, be it a room or an entire apartment, is exciting and signals a new chapter of your life. After all you are now getting your own space where you can display your personality within the confines of some privacy. For younger adults who used to live with their parents, this means much-desired freedom. But navigating the ins and outs of renting in Singapore can be a little daunting for most, whether you’re an expatriate, a working adult or a fresh graduate. Here are six things you should know before you start looking for the perfect place.
1.Your Property Options
From a swanky penthouse to a cosy room in a HDB, it’s best to narrow down your desired abode according to your budget and how comfortably you can live in it. A general rule of thumb is that your rent shouldn’t take more than 30 to 40 per cent of your monthly salary. Another aspect to consider is if you will actually use the facilities, should you be renting a condo unit. Here’s a general budget breakdown of the monthly rent for the different options.
HDB Flats
An entire unit would cost between $2,500 to$3,500 a month while a room can cost between $500 to $1,000.
Service Apartments
Service apartments are similar to condos in the sense that they normally have gyms, cafes, swimming pools and BBQ pits. They are typically fully furnished and sometimes even include cleaning services. For a one-bedroom apartment the rent can go from $2,500 to $6,000 while for a two-bedroom apartment it can go from $5,000 to $10,000.
Condominiums
Also equipped with facilities like gyms, swimming pools and security guards, condo units range from $2,500 to $10,000.
Penthouses
These top-of-the-range units have their own rooftop gardens, private swimming pool and, of course, a great view being on top of high-rise buildings. They can range from $10,000 to $30,000.
Landed Property
From terrace houses to semi-detached houses to bungalows, these private properties can range from $10,000 to $30,000.
2. Other Considerations
Other than budget, there are things to consider that largely affect your lifestyle quality. Hungry at night and want to take a stroll to a supper spot? That’s not going to happen if you’re staying deep inside a large cloister of terraces. Do you drive? If not, make sure you live close to MRT stations or bus stops. Is the house far from your office? Then you’ll have to consider how much you’re willing to pay for the convenience of a less stressful and shorter commute. Does noise irk you? If so, pick somewhere in the middle of a tranquil environment like near a park and not next to amenities like a food court. Lastly, how long do you want to lease the unit or room for? The minimum rental period in Singapore is three months for private property and six months for HDB flats, so make sure you don’t rush the selection process.
3. Should You Get An Agent?
An agent would certainly save much hassle and might get you a better overall deal than you could source by yourself. The agent’s job is to narrow down the options available according to your preference, arrange meetings and viewings, and negotiate on your behalf. Your agent is also supposed to inform you if you’re getting a good price, and make sure the legal agreements are all fair. Note that it is illegal to be a property agent for both the tenant and landlord. Appointing an agent will also mean paying commission, which on average is 50 per cent of a month’s rent for each year of contract.
4. Terms To Note - Letter of Intent (LOI) and Tenancy Agreement (TA)
Imagine having found a suitable place, and now you want to seal the deal. You’re already thinking about the furniture. What next? Here is where the Letter of Intent (LOI) comes into play. The LOI details the terms of rent that you and the landlord have agreed verbally on, and includes things like rental rate, lease duration, terms of payment, deposits, responsibilities of both parties, utilities, maintenance and other clauses. LOI should be signed, and is typically accompanied by a Good Faith Deposit, which equals to one month of rent for every 12 months of lease duration. This Good Faith Deposit is, as the name suggests, done so that both parties can trust each other that the rental will actually happen. Next we have the Tenancy Agreement (TA), which is a more detailed, serious and legally-binding version of the LOI. Think of the TA as the formal contract, and the LOI as the first stage of the TA. Note that not every rental process involves the LOI, and sometimes the LOI is excluded. However, the TA is compulsory. If LOI is involved, make sure the terms are similar in the TA. Read your TA very carefully, and make sure to request for further information should there be a lack.
For TA, pay attention to things like what happens when rent is overdue, early termination, repairs, privacy and option to renew or extend the lease. Normally the landlord prepares the TA.
5.Responsibilities
Imagine moving into a house with no washing machine or fridge. That’s a nightmare you want to avoid. In general, a landlord’s responsibility is to provide bigger ticket items like electrical appliance like fridges and TV, as well as basic kitchen equipment, air-conditioning, fans, and lighting. Of course, things like a working lock for doors is a must. For condos, maintenance fees should be paid for by the landlord. So what are your responsibilities as a tenant? In general, a tenant should pay for (or at least a share of) the utilities bills, internet and phone bills, consumables like toilet paper and HDB parking charges. Outside of these daily stuff, special negotiations can be made. For example you could request for a coffee machine or even breakfast should the landlord be staying with you and doesn’t mind cooking for an extra person (with a charge, perhaps). The point is, if you want something, don’t shy away from discussing it with your landlord.
6.Moving In
Now that all the paperwork is out of the way, you’re eager to start living in the rented place. But before you think about where to put that recliner, check that all the inventories stated in the TA are present and without defects. Also make sure you grab a complete set of keys. Finally, remember that landlords prefer stable and long-term tenants to avoid continuously looking for new tenants and going through the process again and again. In other words, play nice, be fair, but also be firm so that you get what you are paying for, especially if you like the place and want to stay for a few years. Now you can finally sit back, relax, and enjoy your new home. However, if things don’t work out, just explore the neighbourhood and see if there’s anywhere else you want to stay at. Tide till the lease is over then move out. Don’t be afraid to explore new options. That’s an advantage of renting -- it’s a temporary commitment.
From idyllic Changi Village to the warm-hearted heartlands of Woodlands, begin your search by visiting SRX’s rental listings here.
Source: editorial
Source: SRX Property News (03 Sep 2019)