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Renting out a room just got harder with Planning Act Amendment

By Michelle Zhu

/ The Edge Markets |

February 7, 2017 11:12 AM SGT

SINGAPORE (Feb 7): Leasing your apartment or room out on a short-term basis through homestay networking services such as Airbnb may very soon be ruled as illegal under Singapore law.

In a second reading of a speech on the Planning (Amendment) Bill 2017 in parliament on Monday, National Development Minister Lawrence Wong says he intends to “make explicit the lawful boundaries pertaining to residential rental and subletting”.

The Bill will introduce a new schedule to the Planning Act, which lists the use of residential property for short-term and dormitory accommodation, as illegal without URA’s permission. This also involves stricter penalties for unauthorised development, works or subdivision for repeat offenders or the unauthorised use of private property.

According to local media sources, the Ministry of National Development is mulling the option of creating a new category of subletting, which involves both existing and new residential sites which are designated specifically for the purpose of short-term rentals.

Presently, the Urban Redevelopment Authority (URA) states that private home owners who wish to rent out their properties and spaces for less than six months cannot do so lawfully unless they obtain permission from the national planning authority, while also limiting the number of unrelated tenants in private apartments to six.

The cap does not apply to families, as the amendment expressly excludes persons who are related, along with their domestic helpers and care-givers.

For units currently housing seven or eight persons, Wong says URA will allow the tenancy agreements to “run their natural course” for now, and will not clamp down on them before they expire.

Through the proposed amendments, Wong believes planning levers will be enhanced while provisions in the Bill will strengthen Singapore’s current regulatory regime, such as engaging qualified persons (QPs) throughout the key stages of a property’s development process.

“This serves to safeguard the quality of the environment, and at the same time, maintains good practices and overall standards in the industry,” he adds.

Read the transcript of Lawrence Wong's full speech here

This story first appeared on The Edge Markets

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