Process of renting

• Decide on your budget and criteria for a rental home. Consider engaging a real estate salesperson (property agent) who can assist you in pricing your rent

• Check that the salesperson is registered with the Council for Estate Agencies (CEA)

• Search and browse rental listings

• Consider engaging a real estate salesperson (property agent) who can assist you in your search, help with paperwork and negotiate on your behalf
• Check that the salesperson is registered with the Council for Estate Agencies (CEA)

• Shortlist and arrange to view the properties you are interested in
• View the properties

• You should take a look at the surroundings
• You should also look at the common areas and facilities to check on maintenance

• Letter of Intent (LOI) and good faith deposit

• LOI is an offer from you to rent the property. It should include the following:
• Name of tenant and NRIC/passport number
• Lease term of usually 6 months, 1 year or 2 years
• Monthy rental
• Expiry of LOI.
• This is the time frame, usually 7 days, for the landlord to accept your offer.
• Good faith deposit, usually equal to one month of rent.
• In return for the deposit, the landlord cannot offer the property to another tenant.
• The landlord must return this deposit in full if he does not accept the rental offer.
• The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement (TA) is signed
• Security deposit
• This is usually one month of rent for each year of lease term.
• The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement is signed
• This will be returned without interest to the you at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.
• Additional requirements. You may specify requirements such as:

• Permission to sublet your property
• Permission to live with pets
• Diplomatic clause. Under this clause, you can terminate the lease after 12 months by giving 2 months notice if you are no longer employed by your employer in Singapore. You will have to the landlord show proof of your transfer to other countries or cessation of employment in Singapore

• Tenancy Agreement (TA)

• If the landlord accepts your offer, he will prepare the TA, to be signed by both of you. This forms the rental contract
• The TA should include the following:
• Landlord’s name and contact details
• Name of tenant and NRIC/passport number
• Lease term
• Monthy rental
• Payment conditions
• How and when the rental is to be paid
• Security deposit
• This is usually one month of rent for each year of lease term.
• The good faith deposit is converted into the security deposit or the first month of rent after the Tenancy Agreement is signed
• This will be returned without interest to you at the end of the lease, after deduction of any cost for damage according to the Tenancy Agreement.
• Terms for repairs
• Inventory
• Additional requirements. You may have requests such as:
• Permission to sublet your property
• Permission to live with pets
• Diplomatic clause. Under this clause, you can terminate the lease after 12 months by giving 2 months notice if you are no longer employed by your employer in Singapore. You will have to the landlord show proof of your transfer to other countries or cessation of employment in Singapore

• Payment of deposit and fees

• Upon signing the TA, you will have to pay
• Security deposit, less the good faith deposit already paid
• The first month of rent in advance

• Payment of stamp duty

• You are required to pay stamp duty to IRAS to have the TA stamped within 14 days of signing it if it was signed in Singapore
• The deadline for stamping is 30 days after receiving the document in Singapore if it was signed overseas
• You can e-Stamp online  or at these locations listed by IRAS

Computation of stamp duty

AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for:

• Advertising and Promotion charge
• Furniture / Fittings charge
• Maintenance charge
• Service charge
• Any other charges, excluding GST charges

• Inspection and handover, your salesperson can assist with this

• Check each item on the inventory list with the landlord or his salesperson on or a few days before the date of commencement of the list
• Receive the keys

Source: URA, IRAS, The Edge Property