{"id":3798,"date":"2015-12-22T06:07:25","date_gmt":"2015-12-21T22:07:25","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=3798"},"modified":"2022-07-01T03:39:10","modified_gmt":"2022-06-30T19:39:10","slug":"lease-agreement-in-singapore","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/lease-agreement-in-singapore\/","title":{"rendered":"Lease agreement in Singapore: 5 things you must understand"},"content":{"rendered":"
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The rental lease agreement is written in English, but so is Shakespearean literature or a James Joyce novel. Fact is, if you don\u2019t speak legalese you\u2019re going to be in a disadvantaged position when signing any contract. But even if we can\u2019t put you through a law degree, we can give you a primer:<\/p>\n

The Letter of Intent<\/strong><\/h3>\n

The Letter of Intent<\/a> (LOI) is the first step to renting. This is prepared by your property agent, and outlines your requirements to the landlord. Once the LOI is signed, you will receive the tenancy agreement \u2013 this is where you need to pay attention to the fine print, as it imposes some conditions on you.<\/p>\n

A standard tenancy agreement will use the Institute of Estate Agents (IEA) document<\/a>. You should speak to your agent about any changes or variations the landlord makes on this.<\/p>\n

Keep an eye on the following:<\/p>\n

1. Diplomatic clause in the lease agreement<\/strong><\/h3>\n

This clause should be included if you are an expatriate. It allows you to break the tenancy agreement after you have stayed for a given amount of time (usually 14 months, if you have a two year lease).<\/p>\n

In the event that you need to head home unexpectedly, this clause will allow you to end your rental agreement without incurring significant penalties. While this is included in the standard template, always double check to ensure it\u2019s present in the lease agreement.<\/p>\n

2. Security deposit<\/strong><\/h3>\n

The security deposit is actually stated in the LOI, but it is payable upon signing the tenancy agreement. The deposit is usually one month\u2019s rent for a one year lease. This sets the terms upon which the landlord can deduct money from your deposit,\u00a0such as when you damage furnishings.<\/p>\n

Ensure that the agreement states when the security deposit will be returned (e.g. 14 days, 30 days, and so on.) Remember that it\u2019s a hassle to collect your security deposit after you\u2019ve left the country, so see if you can negotiate for prompt recovery of it. So, it’s always better to get the security deposit mentioned on your lease agreement.<\/p>\n

Did you also know, aside from normal payment methods like cheque, you can pay for the security deposit with your credit card via CardUp.co<\/a>. This is especially beneficial if you do not have a large amount of cash on hand, or have not set up a local bank account yet.<\/p>\n

3. Maintenance and repair liabilities<\/strong><\/h3>\n

Under any section describing repairs and maintenance, check how much you are liable for. In a standard agreement, tenants are only liable for repair or maintenance cost not exceeding $100 to $150.<\/p>\n

If the given liability is a lot higher, ask for justification. Abandon the deal if you feel such terms are unfair.
\nAlso note the terms of reporting defects. In most cases, you should have up to 30 days to bring up defects such as bad plumbing, broken wall sockets, leaks, etc. The lease agreement of the contract should clearly state that the landlord is the one to deal with these issues.<\/p>\n

4. Inventory of contents<\/strong><\/h3>\n

This is a list of all the stuff in the house, such as microwave ovens, television sets, the refrigerator, etc. It\u2019s tempting to get lazy here, but don\u2019t \u2013 unscrupulous landlords can and do rip off tenants with the inventory.<\/p>\n

You need to ensure that the items in the inventory correspond, and that they are in working condition when you move in. Also take note of the brand and model: unethical landlords may \u201cdiscover\u201d your microwave has been replaced with a cheaper version, and then demand you pay for it. So, better have an eye on the inventory while preparing your lease agreement.<\/p>\n

5. Stamp duties<\/strong><\/h3>\n

Your lease agreement must be stamped by the Inland Revenue Authority of Singapore (IRAS.) Like any country\u2019s tax authority, they are devoted to the mission\u00a0of ensuring that nothing is free. Visit their website<\/a> to work out how much your specific stamp duties will cost; as a tenant, you are usually the one to pay this.<\/p>\n

After you\u2019ve forked out the money however, it is always the landlord\u2019s responsibility to make sure the proper seals and stamps are in place. You should always get a proper receipt from the landlord, to prove your money went to paying the stamp duties.<\/p>\n

It gets more complicated than this, but understanding these five points should put you on the right track.
\nLike it or not, you will probably be quite dependent on your property agent to double check the rest of the lease agreement. First time renters, especially, will find the agent\u2019s fees well worth it.<\/p>\n

Check out other rental related articles here:\u00a0Tenant tips: How to up your negotiation game when renting in Singapore<\/a> and\u00a0Foreign tenant\u2019s security deposit withheld by landlord \u2013 is there any truth to this?<\/a><\/p>\n

Find the rental home of your dreams today at Singapore\u2019s largest property portal 99.co<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

We have noticed that many Singaporeans have trouble reading their lease agreement. Here is a small guide to help you better understand them.<\/p>\n","protected":false},"author":21,"featured_media":54087,"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":[53594],"persona":[],"class_list":{"2":"type-post","11":"entry","12":"has-post-thumbnail"},"acf":[],"yoast_head":"\nLease agreement in Singapore: 5 things you must understand<\/title>\n<meta name=\"description\" content=\"We have noticed that many Singaporeans have trouble reading their lease agreement. 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