It’s all fun and games when we’re house-hunting as young adults, but get closer to the finish line of signing that contract and you’ll realise that there’s more to renting and its associated costs than meets the eye. From stamp duty and security deposits to maintenance fees and utilities, these are just some of the expenses that can quickly add up.
To save yourself a huge shock, here are some hidden rental costs people don’t really talk about, and how to budget for them accordingly.
1. Tenant agent fees & your landlord’s agent fees in some rare cases
Image credit: Pexels
For young adults fresh out of uni looking for a single room to kickstart your adulting journey, the steps to renting an apartment might seem very straightforward. But if you’re time-strapped and looking for someone to handle all the nitty gritty details of renting for you, you might want to consider engaging a housing agent.
Here’s a little table that shows you how much you can expect to pay your agent based on your rent and the length of your tenure.
For a little commission, these agents can provide personalised guidance, handle paperwork, negotiate terms, and coordinate property viewings for you. In some rare cases, when there is a lot of interest around a particular unit, tenants might be asked or even offer to pay off a portion of the landlord’s agent fees to get priority on the unit in question.
2. Upfront costs for furniture & appliances in unfurnished or partially-furnished units
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Unlike fully-furnished units, an unfurnished or partially furnished unit typically lacks essential furniture pieces and/or appliances. This means all that extra furniture shopping will need to come out of your own pocket.
This might make fully-furnished apartments the most attractive and practical option for renters looking to save a buck or two. While it does save you quite a lot of upfront costs, the downside to fully-furnished apartments is making sure nothing gets damaged during your stay.
There’s always a possibility of wear and tear with time, but in most cases, landlords will inspect the condition of their furniture and appliances at the end of the lease. Depending on how strict your landlord is, they might find fault with the condition of the furniture piece when your tenancy is up, and deduct the amount for a replacement from your security deposit.
Here’s how you can safeguard your rental deposit.
3. Minor repairs & air-con servicing
Image credit: TheSmartLocal
Some other unsuspecting costs that might arise come from general repairs and maintenance of the unit such as replacing light bulbs that have blown, fixing new plumbing issues and the replacing of any damaged fixtures.
Check your tenancy agreement for a clause on minor repair work and who should be responsible for paying for these. Some landlords might also choose to cap the amount a tenant is responsible for, and the excess will be borne by them.
Do check your tenancy agreement for any clauses on aircon servicing. Some landlords require regular servicing, typically costing between $30 to $60 per session, which tenants are expected to cover. However, others may include aircon servicing in the rental package—so it’s worth clarifying this before signing the lease.
4. End-of-Tenancy cleaning
Tenants are responsible for returning the property in good condition when their lease ends. Unless you’re going to roll your sleeves up and get to cleaning, you might want to engage the professionals to do the job for you.Unlike regular cleaning which zooms in on maintaining the cleanliness of areas that you frequent daily, end-of-tenancy cleaning is a comprehensive session that will ensure that every nook and cranny of the flat—the inside of all cupboards and under appliances—are sparkly clean.
This cleaning session usually spans 3-5 hours and will set you back anywhere from $200 to $400. This cost is expected to be borne by you, the tenant. For example, Helpling charges $378.90 for “Move Out Cleaning” for homes between 751-1,000sqft. Their service also includes cleaning upholstery, and even the inside of your fridge.
However, if you decide to take your chances and not hire professionals for the job, your landlord might deem the state of the apartment during handover as less than satisfactory and hire professional cleaners at your cost.
5. Parking fees if you drive
If you drive, be prepared to pay a parking fee that varies depending on where you’re renting. In prime areas, condo parking can set you back anywhere from $150 to over $300 per month. In non-prime areas, they’re usually a bit kinder to your wallet, ranging from $80 to $150. But, to be sure, always check with the condo management for the most up-to-date rates!
HDB parking rates vary depending on the location designations and seasons. There are three categories: Restricted Zones which are typically in prime areas, and Designated Areas and Rest of Island, which cover non-prime regions. Expect to pay anywhere from $80 to $190 per month in the restricted zones, while non-prime regions usually have rates between $80 and $120.
6. Stamp duty on your tenancy
Image adapted from: Inland Revenue Authority Singapore
In Singapore, tenants must pay stamp duty when signing a Tenancy Agreement. It’s a government fee that legally validates the contract and applies to leases longer than 4 years or leases under 4 years with a monthly rent exceeding $1,000.
Payment must be made within 14 days of signing the lease via the IRAS e-Stamping Portal. Failure to do so could lead to penalties, and the tenancy agreement may not be legally recognised.
7. Utilities & Wi-Fi
Utilities are another key expense. Always check with the homeowner whether water, electricity, gas, and Wi-Fi are included in the rent, as they may not always be covered.
For a couple renting a 3-room HDB flat, you’re looking at an estimated $80-$100 monthly for just utilities and another $40-$50 or so for Wi-Fi.
Top tip: If you’re sharing an apartment, splitting utilities can sometimes lead to conflicts due to a difference in personal habits, so it might be a good idea to look for apartments with fixed rent that includes the monthly utilities.
The hidden costs that come with renting in Singapore
Before committing to a rental, always be clear and take note of what’s included in the lease. Budgeting for additional costs like stamp duty, parking fees, and pest control helps you stay financially prepared. Check with the landlord or agent about potential extra costs. Planning ahead can make your renting experience much smoother
For more articles about renting in Singapore:
- Rental deposit pitfalls to watch out for
- Guide on renting a room, HDB or Condo
- Cheapest condo room rentals in the east
Cover image adapted from: Bower Power Blog, Anergy Building Services PTE LTD
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