Even if prices of rent in Singapore have come under pressure, the amount you spend per month can still be rather substantial. For instance, a 3-room HDB flat around District 7 can cost from $1,700 to $6,500 for a 2-bedroom apartment.
So if you are looking for an apartment to rent in Singapore but have little clue about how to effectively save on rental, here are six tips for you.
Rent the entire apartment (with friends)
Most people who are looking to cut their rental cost will most probably rent a single room from the landlord or main tenant. However, if you are looking to rent a condominium, renting the whole apartment may make more economic sense.
Renting an entire apartment with friends can help you to save drastically . Let us give you an example. You might be able to rent a 3-bedroom apartment at Novena for about $3,500 per month. Say you rent out the other 2 common rooms to 2 other friends at $1,300 each, you will effectively be paying just $900 for the rent as a main tenant with a master bedroom!
If you can manage this arrangement and is perfectly fine living with others, this can be a very economic way to save money on rent. Do however note that it requires you to take care of the maintenance fees, as well as the trouble of looking for tenants when their lease is up.
2. Rent A HDB Instead Of A Condominium
It used to be that most foreigners would prefer to rent a condominium due to the facilities that come with it, as well as the extra privacy and security it provides. But as rental rates increase in Singapore over the years and smaller apartment space in newer condominiums, many are starting to consider renting an entire HDB flat instead.
Renting a HDB to cut rental cost can be an efficient solution, since you will typically pay less per square foot. This is suitable for those with a family who may want to have a bigger space at home and find bigger condominium units unaffordable.
3. Location Away From The City
Property prices, as well as rental prices are very dependent on where they are located. Typically, units around the central region are notorious for their high price, so why not consider living a little outside of town to save yourself a few hundred dollars?
City fringe areas like Boon Keng, Potong Pasir and Kallang make a good compromise between their proximity to town and being considered a “heartland” zone. An additional benefit for living in these areas? Less crowd and cheaper food.
Let’s compare the rental prices of city fringe condominiums and the ones that are right in the midst of the CBD:
|Property||Eight River Suites||18 Woodsville||Icon||
Marina Bay Residence
Rental rates for 2-bedroom Apartments
|$2,400 – $3,800||$2,700 – $3,288||$4,200 to $6,800||
$5,500 to $7,500
|Proximity to MRT||5 mins walk to Boon Keng MRT||4 mins walk to Potong Pasir MRT||3 mins walk to Tanjong Pagar MRT||
5 mins walk to Downtown MRT
As you can see from the above table, the rental rates of the two residences situated around the city fringe – Eight River Suites and 18 Woodsville – are almost half the price of the other two condominiums situated right in the CBD.
What’s more, if you don’t work near the Central Business District, you can even consider an area that’s near your workplace that might give you better rental rates.
4. Take Up A Longer Lease
The current market is widely considered a tenant’s market, given the large supply of rental apartments available. This means that you have stronger bargaining power, especially so if you are willing to take up a longer lease.
This is because landlords almost always prefer a longer lease in order to guarantee their rental income, which means t you can try to bargain for a lower monthly rent. Put yourself in the landlord’s shoes, will you forgo $100 per month in order to guarantee that your tenant will stay for 2 years, or would you take the risk of your apartment going empty for 2 months after your tenant leaves in a year? The opportunity cost of the latter is clearly higher!
5. Look For An All-In Contract
There are no short of complaints of tenants having to pay ridiculous fees to their landlord due to misunderstandings arising from the tenancy agreement. This is why one should always study the tenancy agreement carefully before signing it.
Common problems usually arise due to conflicts over who should pay for maintenance, for repairs within the apartment as well as air-conditioner servicing. In order to minimise these inconveniences, look for an all-in contract where the landlord will take care of all these, or compromise with a 50 percent split of the final bills.
6. Look For A Partially-Furnished Apartment
Most rental homes come equipped with basic furniture so that tenants can simply move in with their luggage. However, those who might be accustomed to renting in their home country may prefer to decorate their rental homes as they wish to give it their own character.
The strange thing is if you insist on wanting your own furniture in your rental apartment, some landlords will actually reject you, since they do not want to throw away their perfectly-conserved furniture just to accommodate you. This is why choosing a partially-furnished apartment can actually help you save money from buying your own furniture, which can easily come up to a few thousand dollars if you are thinking of furnishing the entire apartment.
Check out other rental related articles here: 7 rental hidden costs: is that cheap rental unit too good to be true? and 10 most common property renting mistakes and how to avoid them
Find the rental home of your dreams today at Singapore’s largest property portal 99.co!