In the past few years, the idea of flying the nest and renting a flat of your own has gained quite a bit of popularity—whether it’s to get away from overly-attached parents or having to wait years to get the keys to your BTO. Whichever the case, we unpack all you need to know about renting in Singapore━what you should take note of, things to avoid, and how to go about doing it.
Plus, we speak to real estate agent, Wahidah Ayub, who shares with us her tips on what to look out for.
What are the average rental rates for different types of properties in Singapore?
Image credit: HDB
One very useful starting point is to do some research into the rental rates that you can expect. For this, HDB has a very nifty tool that shows you the monthly rental rates of HDB flats, where you can customise your search across parameters like estate and HDB flat type, down to the exact road or block itself. Here’s a sample of data that we found:
- 3-room flat in Yishun: from $1.5K-$3.3K
- 4-room flat in the Central area (e.g. outskirts of CBD, Tanjong Pagar): $2.5K-$5.5K
You can also check out HDB’s statistics on the median rent across estates, which gives you a sense of how rent has been trending in specific areas.
If you are interested in renting condos instead, then head over to URA’s guide, where you can search for individual condos and their rental statistics. Here’s a sample:
- Park Colonial (Bidadari): $4.2K-$7.1K (2BR), $4.3K-$7.6K (3BR)
- The Criterion (Yishun): $2.25K-$4.6K (3BR), $3.1K-$5.2K (4BR)
Alternatively, you can also check out online property platforms like PropertyGuru and 99.co, which will have aggregated data on rental rates for both HDB flats and condos as well.
While these guides are helpful, there isn’t a definitive answer to how much rent you should be paying because there are many factors to consider. These include things like unit size, floor, whether you’re renting a furnished apartment, number of tenants, and whether you’re renting a room or the whole apartment.
How do you budget for rent in Singapore?
We get it, the prospect of moving out and finally having that personal space all to yourself can be pretty exciting. However, one fundamental step before you even start to look for an apartment is to check your financial health, to ensure you can actually afford it.
It’s basically a simple numbers game: paying rent will be another monthly cost that you incur on top of other expenses like food and travel━so you should check if it fits into your budget.
How much should I set aside for rent? A popular rule of thumb is to set aside no more than 30% of your monthly income for rent. For example, if your take home pay is $4,000, then you should be budgeting no more than $1,200/month for rent.
You should also figure out how long you’re looking to rent for, says Wahidah. Rent is a recurring expense, and you’re forgoing the opportunity to build up your savings and buy a place of your own. You have to decide if renting will be a long-term solution, or just something that you’ll be doing in the short term while you figure other life stuff out.
Are rental rates in Singapore negotiable?
The short answer is yes. There is no hard and fast rule, and you are definitely within your rights to negotiate your rent.
Here are some things you can do to put yourself in a more favourable position when it comes to negotiating with a landlord:
- Demonstrate that you are a reliable tenant: have a stable paying job or source of income, pay your rent on time, and show that you’re a responsible adult and won’t be reckless with the property.
- Show that you’re genuinely interested to rent for a healthy period of time: the longer the better, so that they won’t have to be troubled by the need to look for another tenant. Generally, longer-term rents are cheaper on average, and most landlords will appreciate not needing to look for new tenants if they have a stable, long-term one.
- Be reasonable when you send a counter offer: justifying it with market data might also help.
- It’s a game of give and take: every rental proposal would come with terms and conditions. If you show some flexibility on those terms, they could possibly lead to concessions on your monthly rent.
- Always use a reliable agent: they know the market, and you can rely on their expertise to help you negotiate with the landlord and their agent.
What are the best online platforms for finding rental properties in Singapore?
Image credit: Kelvin Hu via Facebook
To know what’s available in the market, you can check out online property platforms. There are also dedicated Facebook and Telegram groups, which people often use to advertise places available for rent. You might have also come across flyers at bus stop pillars, community centre notice boards or even put up on HDB notice boards or at void decks.
Here are some Telegram and Facebook groups to check out:
- SG Singapore Room For Rental
- Rent Room, HDB Flat, Apartment, Condominum, Landed House in Singapore Sg
- Room For Rent @ iLiveSG.com No Agent Fee Singapore SG
- Rent Your Room in SG
In short, there are many ways to find out what’s available, and we recommend casting a wide net just to see what’s out there. Also, as you’re knee-deep in your search for potential places to rent, keep a list handy with the pros and cons of each shortlisted unit.
Important factors to consider when renting a home
Some questions you can ask yourself when you begin your search include:
- How much can you afford to set aside each month for rent, utilities and other miscellaneous fees?
- Do you just want to rent a single room, or a whole unit?
- Are you looking to rent alone, or with others?
- Where are you looking to stay?
- Are you looking to stay in a HDB flat or a condo?
These will help you narrow down the options, so you don’t feel overwhelmed.
Another aspect to take into consideration are your lifestyle habits, because some landlords may ask that you do not smoke, have pets, or do heavy cooking in the unit.
What are some best practices for prospective tenants?
Check the flat out yourself
As you may know, photos that you see online can be deceiving. To avoid being catfished, we highly recommend going down personally to check the place out for yourself. It varies from property to property, but you’ll usually be met either by the landlord or their property agent, who will bring you around to view the flat.
During this process, take the time to look closely at the condition of the unit, and if you’re going to share the flat, you might want to ask about your prospective flatmates. Something else you might want to consider is the location of the flat and its surroundings, including asking about your immediate neighbours━whether there are any known issues with them, perhaps.
These are all important things to take note of when you recce the flat ahead of making a decision, since it’s easier to back out at this point if there are deal breakers, than renege on your contract later.
Express your interest to the landlord
Assuming you’ve found your dream rental, the next step would be to send over a Letter of Intent (LOI) to the landlord to formally express your interest in renting the property. This is sometimes accompanied by a ‘good faith deposit’ to secure the place.
That said, this varies from case to case━the LOI is not technically a legal document, nor is the good faith deposit mandatory. Sometimes, you can skip directly to the next step, which is the Tenancy Agreement (TA).
Look through and sign the Tenancy Agreement
Image credit: Themis Partner
This is the stage when you negotiate the final terms about things like your tenancy duration and monthly rental, then have them in black and white on the contract. The TA is a legally binding document, so you need to read through all the clauses carefully.
While you technically don’t have to, it’ll be good to engage a real estate agent to assist you with this process, says Wahidah. They would have the knowledge to parse through the terms and conditions of the contract, and advise you on any missing or questionable clauses. Without the help of an agent, you might risk signing off on a lease with terms that are unfavourable to you.
For instance, one of the most common disputes between landlords and tenants is regarding additional or ‘hidden’ fees such as repairs━who’s responsible for footing these charges, and to what extent, for example.
Who pays for maintenance such as regular air con servicing is another item that should be settled upfront, so it’s best to reach an understanding and have it all detailed in the TA, which stands as a legal document that you can fall back on in case of any dispute.
In addition, an agent will be able to help you to make arrangements for viewings, and serve as the middleman who can take charge of the negotiations. You’ll have to pay them a fee, of course, which commonly stands at half a month’s rent for a 1-year lease, and 1 month’s rent for a 2-year lease. However, it really varies from agent to agent, so your fee might vary.
What is rental stamp duty, and why do I need to pay it?
Separately, you will also have to pay rental stamp duty to IRAS, AKA taxes on Tenancy Agreement documents, regardless of whether you’re renting just a room or a whole unit.
Image adapted from: EdgeProp
In essence, the stamp duty you owe IRAS is dependent on Average Annual Rent (AAR). If your AAR is less than $1,000━which in reality is near impossible━you’re exempted. Otherwise, it’s 0.4% of the total rent if you’re renting for 4 years or less, or if your lease is longer than 4 years, 0.4% of 4 times the AAR for however long you rent for.
For example, assuming your rental is $2,000/month, with a 2-year lease, you would need to pay 0.4% of $48,000, or $192 in stamp duties. If you’re leasing the unit for 5 years, your owed stamp duties would be 0.4% of $96,000, or $384.
Technically, the stamp duty has to be paid before the signing of the Tenancy Agreement, but this isn’t always the case. There are provisions and leeways in place so you can pay the rental stamp duty within 14 days after signing the TA if it’s signed in Singapore, or within 30 days of receiving the TA if it’s signed overseas.
After moving in
Once all the legalities are done and dusted comes the moving in, which might be the most exciting part of this journey. You should communicate with your landlord and fellow tenants to inform them about when you intend to move, so they know when to expect you.
Can my landlord increase my rent during the lease term?
Theoretically, no. Your tenancy agreement would have stipulated the agreed-upon rent, barring any increments for at least a stated period of time, or the duration of the lease. However, in some special cases, the landlord and tenant might have included in the TA a provision of having the option to exercise a renegotiation of the agreed-upon rent under special circumstances.
How do I ensure my security deposit is returned in full?
Ensure that your TA spells out terms for the return of your security deposit, such as the time frame within which the sum should be refunded. This duration should be reasonable, since the landlord will need to check the property and decide if deductions to fund repairs are necessary. If you do fail to get your security deposit back, you could send a letter of demand, or file a case with the Small Claims Tribunals.
What should I do if I need to break my lease early?
Go back to the TA to find out the conditions for termination of the agreement. In some cases, it might mean your only recourse is to keep paying till the lease expires. If you’ve been a problem-free, long-term tenant, you might be able to negotiate something with your landlord should the need to break your lease early arise. For instance, some landlords may allow you to break your lease early, as long as you can find someone to take over your contract.
All you need to know about renting a room or flat in Singapore
With this guide handy, you’ll be more than prepared to embark on the journey of renting your first flat. Try to exercise caution, and not rush into making any decisions during this process, because there are multiple levels of commitments that you need to be sure of before you take the plunge.
For more reads on renting a flat or property:
- Renting a property in JB as a Singaporean
- What you need to know about HDB’s Voluntary Early Redevelopment Scheme (VERS)
- October 2024 BTO launch: what you need to know
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