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FURNITURES
Novena Sofa
Courts Sofa
IKEA Sofa
APPLIANCES
Gain City
GE Appliances
GE Pro Range
All Appliances Compare
IT
Challengers
GROCERIES
Cold Storage
Giant Super Market
Sheng Song
NTUC Fair Price
Qoo10
Grocery Store
RENTING GUIDES
Following is a brief explanation of the rental procedure.
Once you have found a property that you like to rent,
and both you and the landlord have mutually with all terms,
you can start initial the lease with a "Letter of Intent",
though not necessary.
The agent is the one usually assist
in the preparation of the documents required for the Lease.
Tenant's agent prepare Letter of Intent,
and Landlord's agent shall prepare
Tenancy Agreement and Inventory List.
LETTER OF INTENT
Letter of Intent is an expression of
the potential tenant's interest to rent a premises.
However, if the terms and conditions are simple and clear cut,
it is strongly advised to enter directly with the signing of
Tenancy Agreement without the Letter of Intent.
This "Letter Of Intent" is a short proposal from tenant to the landlord
to rent the apartment with a summary of the terms and condition,
usually covers deposit, rental, furnitures in details etc.
Together with the letter of intent,
the tenant presents to the landlord
with a goodfaith consideration
equivalant to one month rent.
With accepting the good faith deposit and
the signing of the document,
the landlord expresses that he agrees to the tenant's proposal
prior to entering into signing of Tenancy Agreement.
Typically the Letter of Intent specifies the following:
Duration:
Usually 24 months
(but may be 1 to 3 years or
other mutually agreed periods),
with optional renewal of another 12 or 24 months
– however not necessarily with same rent.
Generally, landlords are not keen to rent
less than 12 month and
the tenant may have to
pay premium for shorter term lease.
Start Date:
the date when the lease is supposed to start.
Generally, landlords are not keen to start a lease too far in the future.
Often leases do start immediate, or after less than 1 month time.
Monthly rental
Good faith deposit – usually is equivalent to one month rent.
If the landlord signs the Letter of Intent and accepts the deposit,
the landlord undertakes not to lease the apartment to someone else.
When the tenancy agreement is signed,
the good faith deposit constitutes part of the first month rental or security deposit.
Security deposit – The amount of security deposit is
normally stated in the Letter of Intent.
It is payable only with the signing of the Tenancy Agreement.
Typically – it is one month rent for every 12 month of lease.
At the end of the lease, the security deposit is to be refunded without interest.
The landlord however reserves the right to deduct from the deposit all costs,
damages and expenses arising from the tenant
for breaching any of the covenants stated in the Tenancy Agreement.
Additional requirements – e.g. Diplomatic Clause, Furnishing etc.
The Diplomatic clause is to safeguard the tenant in the event the tenant is no longer employed.
Typically it states that you can terminate the lease after 12 months by giving 2 months notice.
Furnished
The 'Letter of Intent' may also state that the property is leased furnished or partially furnished.
Pets
You should also state in the 'Letter of Intent' if you are planning to have pets in the property.
Standard tenancy agreement states that this is subject to landlord's written approval,
and you may want to agree this beforehand in order to avoid problems later.
Smoking
Some Landlord do not prefer smoking tenant.
It is good to check in advance to avoid dispute later on.
Expiry of 'Letter of Intent' –
The Letter of Intent has a clause that specifies
a period within the landlord has to sign it,
usually within THREE ( 03) days or it otherwise expires.
In case no agreement can be reached or expiry,
the landlord has to return the good faith deposit
back to the prospective tenant immediately.
However, if it is tenant's decision to back out with no good reason,
goodfaith deposit shall be forefeited by the Landlord.
Agent's Commission
The Letter of Intent also spell out clearly
how do the Landlord and Tenant rewards their agent respectively.
Tenancy Agreement
The 'Tenancy Agreement' is a binding contract to lease the property,
signed by both, tenant and landlord with witness.
The 'Tenancy Agreement' will take over items from the 'Letter of Intent',
but in more detail.
It is advisable to use the
standard tenancy agreement
provided by the agencies as a template.
At this point you will need to furnish to the landlord with
a copy of your passport and employment pass and/or Identity Card ( NRIC ).
The landlord will need to check that
you are eligible to stay in Singapore.
ICA Immigration and Checkpoint Authority
to confirm your valid entry to Singapore
MOM Ministry of Man Power
to check if your
Employment Pass / S Pass / Work Permit are valid,
Upon Signing the Tenancy Agreemeent,
Security deposit and the first month’s rent is payable,
less any good faith deposit given earlier with the 'Letter of Intent'.
You should check at least the following
accuracy in the Tenancy Agreement:
Tenant's complete details – name, address, ID details
Landlord's complete details – name, address, ID details
Payment details - including when the rent is due and how it is to be paid
Duration – start / end dates
Security deposit – should be one month’s rent for every 12 months of lease
Termination – normally this is included in the Diplomatic Clause.
I may be accompanied by a reimbursement clause.
The latter states that if you exercise the Diplomatic Clause,
you will have to reimburse part of the commission
the landlord had paid to his/her agent - pro-rated to the remainder of the lease term
(for example, if you leave 2 months before the end of a 24-month lease,
you will pay the landlord 2/24 of the commission he/she paid to the agent).
Legalities - Your agent will guide you through all legalities and negotiate on your behalf.
Of course you should be aware of the basic responsibilities as a tenant,
particularly as the Singapore law may be considered favoring landlords.
E.g. in case the tenant fails on rental payments,
the landlord may get a court order to re-possess
the property and/or seize and sell goods inside the property
to recover arrears in rent and legal costs. In other countries,
getting rid of this kind of tenants might take considerably longer.
Stamp duty - The tenant is obliged to pay stamp fee
to the relevant government body
(to make the tenancy agreement a legal binding document).
Usually the tenant’s agent will do the administration for you.
The fee/duty is based on the value of the rental.
First, sum up the monthly rent for premises,
furniture & fittings, service & maintenance charges and
other miscellaneous charges that are payable by the tenant to landlord.
Then, multiply the total monthly rent by 12 to derive the annual rent.
Lease formula (with effect from 29th Feb 1996):
$1 on every $250 of annual rent if the lease term is 12 months and below;
$2 on every $250 of annual rent if the lease term is
exceeding 12 months but equal or less than 36 month
$4 on every $250 of annual rent if the lease term is exceeding 36 months.
Example: for S$4,000 rent per month; 2 years lease:
stamp fee is S$ 48,000 / S$ 250 x 2 = S$ 384,--
Inventory / Moving In - When the property is taken over,
your agent will go through the place and verify (or create)
the inventory inclusive of furniture and fittings and state the present condition.
This inventory list will be signed and serves as reference at checking out later.
For items not deemed to be in order it is advisable to take photos,
or ask the landlord to fix them right away.
This can potentially avoid problems when you are moving out.
Moving out – it is recommended that, together with your agent a
“pre-inspection” is done prior to the actual moving out.
Please DO NOT terminate power supply
before the inspection and proper hand over .
This helps to verify the condition
of the property and possibly rectify things.
Also to make sure – if it is in the tenancy contract -
that aircons are serviced,
curtains are dry-cleaned (keep receipts) and the place is clean.
It should be avoided that a landlord exercises his rights
to deduct expenses from the deposit.
It would make more sense for you to fix a small item
(e.g. changing a light bulb)
and good cleaning with curtain dry washed before inspection
rather than the landlord sending an expensive electrician and
professional cleaning company.
Agent's Commission
Tenancy Agreement also
Spell out how the Commission should be
payable by the Landlord and Tenant
to their agent respectively.
It also state the Renewal Commission,
the clause of No refund of Commission
due to pre-termination of the lease by either party,
and the pro-rata commission panelty
payable by the party at fault.
Servicing Agent Scope of work
Landlord's agent shall cover the following scope of work :
Advertise, promote and marketing the Listing deligently;
Present the premises with facts to his best knowledge;
Prepare Tenancy Agreement and Inventory List;
Tenant's agent shall
Assist the tenant to find a suitable unit to his best effort;
Assist and advise the tenant regarding
the procedure of signing Tenancy Agreement with Landlord
with the payment of deposit and
assist tenant in understandng of all terms and conditions
stated in the Tenancy Agreement,
in some cases, if translation is needed;
Prepare Stamp Duties for documents after signing the Tenancy Agreement;
Turn on Power Supply for the Tenant Prior Take over the premises;
UTILITIES DEPOSIT
For your electricity and water / gas needs
Singapore Power Services (SP Services)
requires you to pay a deposit
before they will turn on the service.
The deposit will be reflected in your first bill.
The deposit currently varies,
depending on your residency status as well as
what kind of property you are renting.
For a foreigner renting a private apartment,
the deposit required is currently set as S$500.
Please check SP Services website for more details.
- http://www.spservices.com.sg/
You can turn on your Utilities online Prior to moving in to the premises.
SOME PREPARATION FOR REAL ESTATE INVESTMENT
Investing on Real Estate is an heavy game.
Some first timers ended up unhappiness with unexpected expenses
due to insufficient preparation and lack of basic homework done.
Some of the investors, they thought once they pay the deposit,
they can start to enjoy collecting rent from tenant.
They are not psychologically prepared to pay certain expenses.
Here are some of the check list for investor :
otherthen servicing bank loan, interest,
agent commission to take care of your long term investment,
other expenses are like :
repair and maintenance of the asset,
changing of funitures,
unexpected damages and ... ...
FURNITURES
Novena Sofa
Courts Sofa
IKEA Sofa
APPLIANCES
Gain City
GE Appliances
GE Pro Range
All Appliances Compare
IT
Challengers
GROCERIES
Cold Storage
Giant Super Market
Sheng Song
NTUC Fair Price
Qoo10
Grocery Store
Following is a brief explanation of the rental procedure.
Once you have found a property that you like to rent,
and both you and the landlord have mutually with all terms,
you can start initial the lease with a "Letter of Intent",
though not necessary.
The agent is the one usually assist
in the preparation of the documents required for the Lease.
Tenant's agent prepare Letter of Intent,
and Landlord's agent shall prepare
Tenancy Agreement and Inventory List.
LETTER OF INTENT
Letter of Intent is an expression of
the potential tenant's interest to rent a premises.
However, if the terms and conditions are simple and clear cut,
it is strongly advised to enter directly with the signing of
Tenancy Agreement without the Letter of Intent.
This "Letter Of Intent" is a short proposal from tenant to the landlord
to rent the apartment with a summary of the terms and condition,
usually covers deposit, rental, furnitures in details etc.
Together with the letter of intent,
the tenant presents to the landlord
with a goodfaith consideration
equivalant to one month rent.
With accepting the good faith deposit and
the signing of the document,
the landlord expresses that he agrees to the tenant's proposal
prior to entering into signing of Tenancy Agreement.
Typically the Letter of Intent specifies the following:
Duration:
Usually 24 months
(but may be 1 to 3 years or
other mutually agreed periods),
with optional renewal of another 12 or 24 months
– however not necessarily with same rent.
Generally, landlords are not keen to rent
less than 12 month and
the tenant may have to
pay premium for shorter term lease.
Start Date:
the date when the lease is supposed to start.
Generally, landlords are not keen to start a lease too far in the future.
Often leases do start immediate, or after less than 1 month time.
Monthly rental
Good faith deposit – usually is equivalent to one month rent.
If the landlord signs the Letter of Intent and accepts the deposit,
the landlord undertakes not to lease the apartment to someone else.
When the tenancy agreement is signed,
the good faith deposit constitutes part of the first month rental or security deposit.
Security deposit – The amount of security deposit is
normally stated in the Letter of Intent.
It is payable only with the signing of the Tenancy Agreement.
Typically – it is one month rent for every 12 month of lease.
At the end of the lease, the security deposit is to be refunded without interest.
The landlord however reserves the right to deduct from the deposit all costs,
damages and expenses arising from the tenant
for breaching any of the covenants stated in the Tenancy Agreement.
Additional requirements – e.g. Diplomatic Clause, Furnishing etc.
The Diplomatic clause is to safeguard the tenant in the event the tenant is no longer employed.
Typically it states that you can terminate the lease after 12 months by giving 2 months notice.
Furnished
The 'Letter of Intent' may also state that the property is leased furnished or partially furnished.
Pets
You should also state in the 'Letter of Intent' if you are planning to have pets in the property.
Standard tenancy agreement states that this is subject to landlord's written approval,
and you may want to agree this beforehand in order to avoid problems later.
Smoking
Some Landlord do not prefer smoking tenant.
It is good to check in advance to avoid dispute later on.
Expiry of 'Letter of Intent' –
The Letter of Intent has a clause that specifies
a period within the landlord has to sign it,
usually within THREE ( 03) days or it otherwise expires.
In case no agreement can be reached or expiry,
the landlord has to return the good faith deposit
back to the prospective tenant immediately.
However, if it is tenant's decision to back out with no good reason,
goodfaith deposit shall be forefeited by the Landlord.
Agent's Commission
The Letter of Intent also spell out clearly
how do the Landlord and Tenant rewards their agent respectively.
____________________________________
____________________________________
Tenancy Agreement
The 'Tenancy Agreement' is a binding contract to lease the property,
signed by both, tenant and landlord with witness.
The 'Tenancy Agreement' will take over items from the 'Letter of Intent',
but in more detail.
It is advisable to use the
standard tenancy agreement
provided by the agencies as a template.
At this point you will need to furnish to the landlord with
a copy of your passport and employment pass and/or Identity Card ( NRIC ).
The landlord will need to check that
you are eligible to stay in Singapore.
ICA Immigration and Checkpoint Authority
to confirm your valid entry to Singapore
MOM Ministry of Man Power
to check if your
Employment Pass / S Pass / Work Permit are valid,
Upon Signing the Tenancy Agreemeent,
Security deposit and the first month’s rent is payable,
less any good faith deposit given earlier with the 'Letter of Intent'.
You should check at least the following
accuracy in the Tenancy Agreement:
Tenant's complete details – name, address, ID details
Landlord's complete details – name, address, ID details
Payment details - including when the rent is due and how it is to be paid
Duration – start / end dates
Security deposit – should be one month’s rent for every 12 months of lease
Termination – normally this is included in the Diplomatic Clause.
I may be accompanied by a reimbursement clause.
The latter states that if you exercise the Diplomatic Clause,
you will have to reimburse part of the commission
the landlord had paid to his/her agent - pro-rated to the remainder of the lease term
(for example, if you leave 2 months before the end of a 24-month lease,
you will pay the landlord 2/24 of the commission he/she paid to the agent).
Legalities - Your agent will guide you through all legalities and negotiate on your behalf.
Of course you should be aware of the basic responsibilities as a tenant,
particularly as the Singapore law may be considered favoring landlords.
E.g. in case the tenant fails on rental payments,
the landlord may get a court order to re-possess
the property and/or seize and sell goods inside the property
to recover arrears in rent and legal costs. In other countries,
getting rid of this kind of tenants might take considerably longer.
Stamp duty - The tenant is obliged to pay stamp fee
to the relevant government body
(to make the tenancy agreement a legal binding document).
Usually the tenant’s agent will do the administration for you.
The fee/duty is based on the value of the rental.
First, sum up the monthly rent for premises,
furniture & fittings, service & maintenance charges and
other miscellaneous charges that are payable by the tenant to landlord.
Then, multiply the total monthly rent by 12 to derive the annual rent.
Lease formula (with effect from 29th Feb 1996):
$1 on every $250 of annual rent if the lease term is 12 months and below;
$2 on every $250 of annual rent if the lease term is
exceeding 12 months but equal or less than 36 month
$4 on every $250 of annual rent if the lease term is exceeding 36 months.
Example: for S$4,000 rent per month; 2 years lease:
stamp fee is S$ 48,000 / S$ 250 x 2 = S$ 384,--
Inventory / Moving In - When the property is taken over,
your agent will go through the place and verify (or create)
the inventory inclusive of furniture and fittings and state the present condition.
This inventory list will be signed and serves as reference at checking out later.
For items not deemed to be in order it is advisable to take photos,
or ask the landlord to fix them right away.
This can potentially avoid problems when you are moving out.
Moving out – it is recommended that, together with your agent a
“pre-inspection” is done prior to the actual moving out.
Please DO NOT terminate power supply
before the inspection and proper hand over .
This helps to verify the condition
of the property and possibly rectify things.
Also to make sure – if it is in the tenancy contract -
that aircons are serviced,
curtains are dry-cleaned (keep receipts) and the place is clean.
It should be avoided that a landlord exercises his rights
to deduct expenses from the deposit.
It would make more sense for you to fix a small item
(e.g. changing a light bulb)
and good cleaning with curtain dry washed before inspection
rather than the landlord sending an expensive electrician and
professional cleaning company.
Agent's Commission
Tenancy Agreement also
Spell out how the Commission should be
payable by the Landlord and Tenant
to their agent respectively.
It also state the Renewal Commission,
the clause of No refund of Commission
due to pre-termination of the lease by either party,
and the pro-rata commission panelty
payable by the party at fault.
Servicing Agent Scope of work
Landlord's agent shall cover the following scope of work :
Advertise, promote and marketing the Listing deligently;
Present the premises with facts to his best knowledge;
Prepare Tenancy Agreement and Inventory List;
Tenant's agent shall
Assist the tenant to find a suitable unit to his best effort;
Assist and advise the tenant regarding
the procedure of signing Tenancy Agreement with Landlord
with the payment of deposit and
assist tenant in understandng of all terms and conditions
stated in the Tenancy Agreement,
in some cases, if translation is needed;
Prepare Stamp Duties for documents after signing the Tenancy Agreement;
Turn on Power Supply for the Tenant Prior Take over the premises;
UTILITIES DEPOSIT
For your electricity and water / gas needs
Singapore Power Services (SP Services)
requires you to pay a deposit
before they will turn on the service.
The deposit will be reflected in your first bill.
The deposit currently varies,
depending on your residency status as well as
what kind of property you are renting.
For a foreigner renting a private apartment,
the deposit required is currently set as S$500.
Please check SP Services website for more details.
- http://www.spservices.com.sg/
You can turn on your Utilities online Prior to moving in to the premises.
____________________________________
____________________________________
SOME PREPARATION FOR REAL ESTATE INVESTMENT
Investing on Real Estate is an heavy game.
Some first timers ended up unhappiness with unexpected expenses
due to insufficient preparation and lack of basic homework done.
Some of the investors, they thought once they pay the deposit,
they can start to enjoy collecting rent from tenant.
They are not psychologically prepared to pay certain expenses.
Here are some of the check list for investor :
otherthen servicing bank loan, interest,
agent commission to take care of your long term investment,
other expenses are like :
repair and maintenance of the asset,
changing of funitures,
unexpected damages and ... ...
____________________________________
____________________________________
