Preventing Illegal Subletting: A Guide for Private Property Owners in Singapore

Illegal subletting offences in Singapore have dropped sharply since 2013, following deterrents implemented by the Housing Development Board (HDB). However, for private homeowners, the onus is still on them to prevent any cases from occurring. Read on to discover some precautionary tips and what to do when a tenant flouts the rules.

The noose has been tightening against illegal subletting on HDB estates since 2013. These measures include implementing a heavy fine on flouters as well as bans on HDB flat purchases and rentals for 10 years. Just last year, an unlicensed property agent was fined $16,000 for facilitating an illegal subletting on a Housing Board unit.

Unfortunately, private properties are not subject to the same protections (and rental laws) offered by HDB.  While there are a number of strict guidelines set in place by the Urban Redevelopment Authority (URA), these rules are largely concerned with restrictions on structural layouts, minimum length of stay, tenancy agreements and overcrowding. As such, private homeowners themselves have to ensure that tenants do not engage in illegal subletting of the premises.

Here is the quick summary of the rules applicable for private property leasings:

1. Private residential properties or their rooms within the premises should not be rented out on a short-term basis for less than 6 months on a daily/weekly/monthly basis.

2. Leasing of the whole unit or subletting of rooms for residential purposes is only allowed for long-term stays of 6 months or more if the following conditions are met:

• No internal partitioning works are undertaken that alter the layout of the property to create more rooms. Such overcrowding can pose safety concerns.

• In the case of master tenancies or en-bloc leasing-out, there should only be 1 single tenancy agreement per residential unit to cover the number of occupants for the unit. This does not apply to a single property or individual owner who leases out rooms within his unit to different tenants.

• Each occupant should have at least 10 sqm of space, and the maximum number of occupants in a residential unit is 8, no matter how big the unit is. (this includes the owner if he is living within the premises.)

Keeping the above in mind, here are some handy tips on how to prevent such a situation from occurring:

Get to know your tenants

While it is the responsibility of agents to verify the authenticity and validity of identification papers, vetting tenants (or potential ones) personally is of utmost importance. Whether it is to understand their reasons for renting your place or simply getting acquainted, meeting potential tenants will prove to be useful in the long run. Not only will this make for a smoother tenant-landlord relationship, it will be easier to take note of any “additions” to the people living on your property.

Run through tenancy contracts & rules

Before signing a contract, ensure that all parties (yourself included) are clear with the relevant rules, terms and conditions of Singapore’s rental market as well as the clauses set out in the agreement. For a more in-depth account of the tenancy agreement, check out our guide.  

Additionally, the contract should list all tenants by name and details for ease of identification, and must clearly state that no other parties are allowed to reside on the premises without prior authorization.

Conduct regular spot checks

Arrange regular visits to your property with the permission of your tenants. Not only will this increase the likelihood that the premises will kept in tip-top condition, it will also allow you to keep a tab on any signs of illegal tenancy.

Despite the soundness of these preventive measures, there remains a chance that tenants will illegally sublet a unit without permission. Below are some recommendations on how to handle the situation should it occur.

Assess the situation

Ensure that a case of subletting has occurred before seeking any form of legal recourse or action. This can be done by matching occupants to those listed within the tenancy contract. Fact check your findings with the master tenant, your housing agent and any other parties involved.

Also remember to gather any form of evidence that will help your case. These includes (but are not limited to) photocopies of tenancy agreements between the master tenant and the sub-tenants, as well as photographs capturing signs of occupancy (e.g. makeshift partitions, additional beds, and/or illegal modifications to the property).

Contact the master tenant

If you have confirmed that a case of subletting has taken place, immediately inform the master tenant of the contract violation. All notifications should also be in black and white so as to ensure the smooth processing of any intended course(s) of action in the future (e.g. termination of the lease, eviction, lawsuits for damages, etc.).  

Resolve the problem

Be firm in highlighting the seriousness of the issue when conducting negotiations with the original tenant. This will involve highlighting the legal consequences if the tenants/sub-tenants intentionally refuse to leave, as well as any actions that you wish to pursue in your capacity as a landlord (For instance, asking for unpaid rent). Additionally, if the lease term is terminated prematurely or if damages have occurred, you will retain the right to confiscate the security deposit which commonly accompanies the signing of a tenancy agreement.

General provisions pertaining to landlord and tenant relations are mentioned in the Civil Law Act, Distress Act, Evidence Act and several other laws. Singapore follows the English common law system. More information on the Distress Act can be found here.

Check out other rental related articles here: Renting to multiple tenants, versus renting to a family and 5 condos for rent that will help you reach your housing goal of being more independent

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