{"id":11902,"date":"2022-07-28T10:40:00","date_gmt":"2022-07-28T02:40:00","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=11902"},"modified":"2024-11-18T14:16:50","modified_gmt":"2024-11-18T06:16:50","slug":"landlord-guide-subletting-flat","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/landlord-guide-subletting-flat\/","title":{"rendered":"The new landlord&#8217;s guide to subletting your flat"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><span style=\"font-weight: 400;\">Subletting your apartment (be it a single room, or the entire apartment) is a great way to make passive income. But before you become a landlord, be sure you understand all the rules and regulations regarding subletting your flat. Read on to find out more!<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rules-regarding-your-eligibility-to-sublet\"><b>Rules regarding your eligibility to sublet<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">If you wish to sublet your entire flat, you need to be a Singapore Citizen who has fulfilled your <a href=\"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-minimum-occupation-period-mop\/\" target=\"_blank\" rel=\"noreferrer noopener\">Minimum Occupancy Period<\/a> (MOP). <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Regardless of whether your flat is a BTO flat or a resale flat, the MOP is five years. However, if you own a resale flat purchased before 30 August 2010, you\u2019re looking at a shorter MOP of three years. <\/span><\/p>\n\n\n\n<p style=\"border: 0.8px solid #808080; font-size: 17px; padding: 15px; text-align: left;\"><i>Read this: <a href=\"https:\/\/www.99.co\/singapore\/insider\/subletting-hdb-flats-trouble\/\" target=\"_blank\" rel=\"noopener\">Subletting HDB flats? These 5 assumptions could land you in trouble.<\/a><\/i><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-rules-regarding-your-tenants\"><b>Rules regarding your tenants<\/b><\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"960\" height=\"400\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/1-5.jpg\" alt=\"subletting flat subtenants\" class=\"wp-image-11904\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/1-5.jpg 960w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/1-5-940x392.jpg 940w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/figure><\/div>\n\n\n<p><span style=\"font-weight: 400;\">First, be sure to keep to the maximum number of tenants for the type of flat that you own. <\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1- and 2-room flats: <span style=\"font-weight: 400;\">Maximum of four tenants<\/span><\/li>\n\n\n\n<li>3-room and bigger <span style=\"font-weight: 400;\">flats: maximum of six tenants, respectively<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Second, all sublets need to fall between the minimum lease period of <strong>six months<\/strong> with maximum lease period of <strong>24 months<\/strong> (if your tenant is Malaysian, the maximum lease period is increased to <strong>36 months<\/strong> instead).<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Before subletting your apartment, you\u2019ll need to ensure that your tenants are legally living in Singapore and that they meet the non-citizen quota<\/span>.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The non-citizen quota states that only 8% of a neighbourhood&#8217;s residents can be non-citizens, and only 11% of the occupants in a block can be non-citizens (with Malaysians being exempt from this rule). <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Check the current quota for your block or neighbourhood <a href=\"https:\/\/services2.hdb.gov.sg\/webapp\/BR12AWNCQuota\/BR12PEnquire.jsp\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Last but not least, tenants may not be tenants or owners of other HDB flats unless they are divorced or legally separated (in this case only one party can rent a HDB flat from another flat owner<\/span>)<span style=\"font-weight: 400;\">, or owners who are eligible to sublet their whole flat. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Besides this, tenants also may not be owners of Executive Condominium (EC) units, unless their 5 year MOP has been met.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-additional-taxes-borne-by-landlords\"><b>Additional taxes borne by landlords<\/b><\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" width=\"847\" height=\"567\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/2-2.jpg\" alt=\"subletting flats taxes\" class=\"wp-image-11905\" style=\"width:700px\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/2-2.jpg 847w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/2-2-440x294.jpg 440w\" sizes=\"(max-width: 847px) 100vw, 847px\" \/><\/figure><\/div>\n\n\n<p><span style=\"font-weight: 400;\">Where property tax is concerned, you\u2019ll be taxed at lower owner-occupier tax rates if you&#8217;re sub-letting out your rooms whilst still staying in the same apartment. Make sure that you get your tenant or agent to stamp the rental agreement as &#8220;partially let&#8221; instead of &#8220;wholly let,&#8221; so that your owner-occupier tax rate will not be withdrawn. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, if your sub-letting out the entire apartment, you\u2019ll be taxed at a higher rate (10% of your home\u2019s Annual Value, or AV). AVs are calculated according to IRAS\u2019s assessment of the recent rental rates for various HDB flats. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Should you wish to estimate the amount of property tax you\u2019ll have to pay upon renting out your apartment, you can do so using <\/span><a href=\"https:\/\/www.iras.gov.sg\/Tax%20Calculators\/PT%20HDBNew\/HDB.html\"><span style=\"font-weight: 400;\">IRAS\u2019s online calculator<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Besides property tax, landlords are also liable to pay additional income tax based on the amount of rental income they earn. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">To learn more about the income tax imposed upon rental income, as well as what expenses are deductible, <a href=\"https:\/\/www.iras.gov.sg\/media\/docs\/default-source\/e-tax\/property-owner-guide-(6th-edition).pdf?sfvrsn=c94b3b07_12\" target=\"_blank\" rel=\"noreferrer noopener\">check out IRAS&#8217;s guide.<\/a><\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-things-to-take-note-of-when-looking-for-tenants\"><b>Things to take note of when looking for tenants<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Ideally, your tenant should have a stable job and be willing to commit to a long-term lease. Make sure you also check up on his\/her references, and ask to speak to his\/her previous landlords to get a better picture of what you can expect. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">You\u2019ll want to lay down the ground rules clearly and explicitly in order to avoid any miscommunications and unpleasant surprises further down the road. <\/span><\/p>\n\n\n\n<p style=\"border: 0.8px solid #808080; font-size: 17px; padding: 15px; text-align: left;\"><i>Read this: <a href=\"https:\/\/www.99.co\/singapore\/insider\/7-basic-steps-screening-tenant-on-your-own\/\" target=\"_blank\" rel=\"noopener\">7 basic steps to take when screening a tenant on your own<\/a><\/i><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Planning to sub-let your flat? Let us know in the comments section below.<\/strong><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Check out other rental related articles here:&nbsp;<\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/easy-ways-increase-rental-income\/\"><span style=\"font-weight: 400;\">5 easy ways for savvy landlords to increase rental income<\/span><\/a><span style=\"font-weight: 400;\"> and<\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/5-problems-landlords-may-not-see-coming\/\"><span style=\"font-weight: 400;\">5 problems landlords may not see coming<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subletting your apartment (be it a single room, or the entire apartment) is a great way to make passive income. But before you become a landlord, be sure you understand all the rules and regulations regarding subletting your flat. Read on to find out more! Rules regarding your eligibility to sublet If you wish to&hellip;<\/p>\n","protected":false},"author":36,"featured_media":57308,"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":"41211,36790,35292,19332,38733,7749","_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":[57131,53590],"tags":[54367,54119,54120],"persona":[57126],"class_list":{"2":"type-post","13":"entry","14":"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>The new landlord&#039;s guide to subletting your flat - 99.co<\/title>\n<meta name=\"description\" content=\"Thinking of subletting your flat? 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