Ultimate Landlord Guide
What All Landlord Should Know Before Renting Their Property In Singapore
To become a successful landlord in Singapore you need to evaluate and understand the costs and responsibilities involved. Contrary to what most people believe, becoming a landlord isn’t a walk in the park. The truth is you will almost certainly have to pay a great deal of money as initial expenses before you even get your first tenant. Expect to take care of expenses such as taxes, property agent fees, initial vacancy costs, replacement or repair costs, and furnishing costs. If you already have a renter in line, chances are you won’t have to pay some of these costs.
Know your Rights and Duties
You need to be fully aware of your rights as a landlord, the laws that protect you, and your duties to your tenants. The law allows you to freely decide and negotiate your property’s rental rate and the terms of the lease. Some of the most common terms of the lease include minimum 3 months for Private Residential and 6 months for HDB, 1 year, 2 years or up to 7 years.
Your tenants should never sublease the property without your knowledge. Also, in the event your tenant is unable to pay the agreed rental fee as stipulated in the Tenancy Agreement, you may seize their belongings inside the property and sell them to recover your money, but you’ll need to obtain a court order first.
As the landlord, it is your duty to respect your tenant’s right to serene enjoyment. This means that you shouldn’t visit your rented property anytime you want without alerting or asking your renter. In case of emergencies, your visits shouldn’t be on holidays or late nights.
If someone buys your property and you still have a renter in the property, transfer the Tenancy Agreement to the new owner. This means that you will have no choice but to terminate the lease in case the new owner wants their property empty. You will incur the specified penalty for early termination.
It is your duty to ensure your property and duly pay the required property tax. Additionally, make sure that the condition of your property is livable and safe for your tenant. More importantly, it is your responsibility to ensure that your renter isn’t staying in Singapore illegally.
Market your Property
You can choose to market your property for rent on your own or you may seek professional assistance. If you decide to do it yourself, be prepared to receive lots of emails, calls, and SMS from prospective tenants.
When posting your property for rent ads, be sure to include as many details as possible. Moreover, take quality photos of your property if you want to receive maximum responses from your future renters and remember to allocate sufficient time for potential visits.
You may also opt to hire a professional to make the rental process easier. Since the rental process is delicate, be picky when choosing your ideal agent. Don’t just hire someone because they associate themselves with a big agency. Ask the potential agent to provide you with a track record of their previous deals and find out how long they’ve been in business.
You may also hire an agent and at the same time market your property for rent yourself. However, you need to be cautious when signing contracts with agents since some agreements don’t allow property owners to market themselves.
Proper Prospects Screening
After you’ve advertised your property, you’ll probably receive lots of responses from prospective tenants. You will need to screen your prospects and ensure that your property is in line with their criteria. The criteria here being budget, size of the property, or the number of bedrooms. Once you’ve confirmed all these, make arrangements for viewing. Consider fixing separate appointments for your various prospects to avoid confusions. Doing so may also help you find out whether your prospective tenant is serious or not.
During visits, try as much as possible to understand your prospective tenant. Ask them what they admire about the property and what they don’t. If the property has some furniture already, bear in mind that your prospective renter might not love it. Don’t take it personally when they point out some flaws during negotiations.
Visits provide an opportunity for your potential tenants to bargain, thus, you may want to give them some discount. If you took time to price your property, convincing your potential renter to take the deal shouldn’t be a problem.
Letter of Intent
Your renter should present a Letter of Intent to you if they choose to rent your property. Usually, a Letter of Intent includes things like lease term, rental rate per month, booking deposit, security deposit, expiry, and additional requirements. The booking deposit also known as good faith deposit is used to guarantee good faith of the renter in renting the property and is equivalent to a month’s rent.
A Tenancy Agreement should be drafted once you’ve accepted your prospective tenant’s offer. You may choose to hire an attorney to help you draft this binding legal document, but it isn’t necessary. Some important items to include in the Tenancy Agreement include your contact details and your full name, the name of your tenant and their passport number, payment conditions, lease term, the agreed rental rate, repairs, security deposit, early termination, subletting, inventory, and pets.
Once you’ve included these important Tenancy Agreement items, print two copies. Consider signing them before submitting them to your renter. Give them time to go through the Tenancy Agreement to ensure that they understand the meaning of the various items stipulated therein. Ask them to return a copy of the agreement to you once they’ve read and understood the terms of the agreement.
Deposit and Fees Payment
Once your tenant has signed the Tenancy Agreement, they should go ahead and pay a security deposit and first-month rent. The security deposit here doesn’t include the already paid good faith deposit. They should also pay stamp duties.
If you hired an agent, you will be required to pay agent commission. If you pay them in cash make sure they give you a receipt. You are advised to only pay your agent once your renter has occupied the property, not before.
Consider building a good relationship with your renters. This means that you shouldn’t be hostile to your tenants instead, be approachable and easy to talk to. Building good relationships with your tenants will ensure that they don’t leave once their lease is over. The upside of being friendly and sociable is that your renters will be free to talk to you honestly about property issues such as broken fittings. They may also talk to you about renewing their leases.
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What Will You Learn When You Download My Ultimate Landlord Guide?
- Are You Cut To Be A Landlord In Singapore
- Know The Regulations
- Know Your Rights & Duties
- How To Set Your Asking Price
- Marketing Your Property
- Screen Your Tenants
- Conduct Viewings
- Letter Of Intent
- Tenancy Agreement
- Payment & Fees
- Handover, Defect Liabilities Period & Taking Over
- Money Saving Tips
- Hard Truth For New Landlords In Singapore
- Final Advice