{"id":10222,"date":"2017-05-22T08:00:01","date_gmt":"2017-05-22T00:00:01","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=10222"},"modified":"2022-07-01T04:06:59","modified_gmt":"2022-06-30T20:06:59","slug":"how-the-new-occupancy-laws-will-affect-singapores-landlords","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/how-the-new-occupancy-laws-will-affect-singapores-landlords\/","title":{"rendered":"How the new occupancy laws will affect Singapore\u2019s landlords"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">New occupancy laws kicked in on 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> May 2017. The total number of unrelated tenants is now restricted to six, because that\u2019s what happens when bureaucracy is confused with logic. Here\u2019s how it could impact our landlords:<\/span><\/p>\n<h4><b>Occupancy rules, then and now<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Prior to this new ruling, landlords could have up to eight unrelated tenants. But from 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> May onwards, the maximum is six. If there are six related persons living in the property, no tenants are allowed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is regardless of the size of the private property involved. That\u2019s right; a 5,000-square foot home, with a living room you could play golf in, has the same occupancy limit as a 1,400-square foot apartment. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Urban Redevelopment Authority has said,<\/span><i><span style=\"font-weight: 400;\"> \u201cWe have simplified the control for greater clarity to the public by not adopting a stratified occupancy cap control based on unit sizes<\/span><\/i><span style=\"font-weight: 400;\">\u201d. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">After all, imagine if we had a system as complex as, say, one tenant per X square feet. You\u2019d need to be some kind of nuclear physicist to work it out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The URA also said the change is to ensure residential units are \u201c<\/span><i><span style=\"font-weight: 400;\">consistent with the character of the local community and integrate better with the neighbourhood<\/span><\/i><span style=\"font-weight: 400;\">.\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">And we all know, six tenants are fine. But once a seventh moves in, everyone develops an urge to dress differently, hate their neighbours, and host loud parties. The current limit is eight occupants, and look at how many of our neighbourhoods are wastelands because of it*.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For tenancy agreements made before 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> May, the new occupancy limit will only kick in on 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> May 2019.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">*<\/span><i><span style=\"font-weight: 400;\">estimated number = below one.<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<h4><b>How will this affect landlords?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">There are a few ways this is going to affect landlords:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Owners of larger properties will lose out<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Landlords will lose the incentive to target certain demographics<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Owners of four-room or bigger HDB properties have a slight advantage now<\/span><\/li>\n<\/ul>\n<h3><b> Owners of larger properties will lose out<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you have a massive private property, be ready for some of your rooms to stay vacant. Again, it doesn\u2019t matter if you have 1,500 square feet or 4,000 square feet; the maximum number of tenants remains six.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s almost certain that landlords will raise \u2013 or try to raise \u2013 rental rates to make up the difference. That\u2019s a bit of a tough call in the present rental market however, so we\u2019d best hope for a recovery soon.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b> Landlords will lose the incentive to target certain demographics<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Landlords who go for volume (larger numbers of tenants) tend to target students, as well as foreign workers. With the new cap in place however, landlords will probably have to shift their attention to family units. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the main aim of the new occupancy cap \u2013 when landlords rent out to families instead of groups of students or foreign workers, there is less potential disturbance in residential neighbourhoods, according to totally unprejudiced opinions. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Besides, it\u2019s more comfortable to other residents \u2013 heaven forbid that they\u2019ll have to see a lot of strangers, while living in an international port city.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Owners of four-room or bigger HDB properties have a slight advantage now<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you have a four-room or bigger flat, you can still have up to nine tenants. Because apparently, the threat of too many tenants spoiling the peace is an issue for private properties only.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regardless, this gives an edge to people lucky enough to have a five-room flat to rent out.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><b>Some business owners have more reason to be unhappy than landlords<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Business owners who employ and house foreign workers are in for it now. If they have eight foreign workers living in a rental unit for example, they\u2019ll have to split them up once the lease expires. From now on they\u2019ll need to rent two separate properties instead, so their operating expenses will be higher.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the upside, some of those foreign workers will finally have more space to themselves.<\/span><\/p>\n<p>Check out other rental related articles here: <a href=\"https:\/\/www.99.co\/singapore\/insider\/shorter-rental-lease-expats\/\">4 reasons why a shorter rental lease is better for expats in Singapore<\/a> and\u00a0<a href=\"https:\/\/www.99.co\/singapore\/insider\/crazy-landlords-singapore\/\">5 types of crazy landlords renters will encounter in Singapore<\/a><\/p>\n<p>Find the rental home of your dreams today at Singapore\u2019s largest property portal <a href=\"https:\/\/www.99.co\/?utm_source=blog%20main%20site%20conversion\" target=\"_blank\" rel=\"nofollow noopener\">99.co<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; New occupancy laws kicked in on 15th May 2017. The total number of unrelated tenants is now restricted to six, because that\u2019s what happens when bureaucracy is confused with logic. Here\u2019s how it could impact our landlords: Occupancy rules, then and now Prior to this new ruling, landlords could have up to eight unrelated&hellip;<\/p>\n","protected":false},"author":21,"featured_media":54741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53589,57131,53590],"tags":[54171,54172,54173,53611],"persona":[],"class_list":{"2":"type-post","14":"entry","15":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How the new occupancy laws will affect Singapore\u2019s landlords - 99.co<\/title>\n<meta name=\"description\" content=\"New occupancy laws kicked in on 15th May 2017. 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