[EZLINK] Private Property Rental in Singapore - Useful Info
*Private Properties Rental*
- The services of an Agent is to bring a Tenant to rent your property. His
services end when the Tenant has settled into the apartment. He is not
expected to look after the apartment or the Tenant on Owner's behalf
throughout the lease period. That will be under property management for
which there will be a property management monthly fee of 5-10% of the gross
rental.
- The Tenant has to present actual & photocopies of passport, employment
pass or any other documents to the Owner for verification under immigration
law.
- There are 2 main documents when renting private properties :- Letter of
Intent & Tenancy Agreement.
- Letter of Intent will state the intention of the intending Tenant to rent
the private properties subject to some terms and conditions to be negotiated
and accepted by the Landlord.
- 1 month gross rental needs to be paid to the Landlord as goodfaith deposit
when presenting the Letter of Intent for the Landlord to sign acceptance.
- The security deposit is usually 2 months gross rental. The security
deposit is to hold the Tenant to the terms and conditions of the lease and
can be forfeited in view of any breach of the terms and conditions of the
lease by the Tenant. It is not simply that by way of forfeiture of 2 months
security deposit, any Tenant can simply walk out of the the lease contract.
A lease contract of 2 years is binding on the Tenant and Landlord for 2
years and if the Tenant cannot fulfill the 2 years lease due to reasons
other than diplomatic clause postings out of Singapore, the Tenant is still
liable to compensate the Landlord till end of lease.
- The standard lease of private properties is 2 years with possible
extension of 1-2 years lease at a mutually agreed rental later.
- The Tenant if a foreigner can request for a diplomatic clause whereby the
Tenant is allowed early termination or expiry of the lease in the event that
the Tenant is posted overseas. Such diplomatic clause have a minimum stay
period of 1 year with 2 months prior notice or 2 months rental in lieu of no
notice given i.e. the Tenant has to stay a minimum of 14 months.
- Maintenance of air-conditioning system in private properties is usually
the Tenant's responsibility for which Tenant usually sign either a bimonthly
or quarterly air-conditioning servicing contract with qualified
air-conditioning contractor.
- The Landlord shall be responsible for repairs & replacement of parts or
any of the air-conditioning system provided the Tenant has taken good care
of the normal routine maintenance with a service contract.
- Under the law, the Lessee meaning the Tenant is required to pay Stamp Duty
for stamping of the Tenancy Agreement. Cheque payment for stamp duties are
to be paid to "Commissioner of Stamp Duties".
- Power supply, gas, telephone, TV license, SCV cable, Fax or Internet
services are not included in the rental and is the Tenant's responsibility.
- The Landlord take care of the monthly maintenance charges by Mgt
Corporation for the Condo, property taxes, income taxes, assessments and
insurance premiums applicable to the Property.
- The Landlord is also to maintain the structural condition, concealed
wirings & pipings, electrical, plumbing, fixtures and fittings of the
demised premises in tenable conditions.
- The Tenant is to maintain the overall general condition of the premises in
tenable livable condition and make sure everything are in neat useable
order.
- The Tenant shall be responsible and shall pay for minor repairs,
replacement of light bulbs, changing of fuses, clearing of basin and sink
blockages etc i.e. items that are less than S$100-200/- per item per job.
- In cases where there is early expiry or termination of the lease due to
whatever reasons, the Tenant has to refund back in pro-rata proportion the
commission paid by the Landlord. It is entirely reasonable as the Tenant has
full control of the situation and any early expiry or termination has to
come from the Tenant.
- Commission payable by Landlord is 1 - 1.5 month gross rental for lease
between 12 month to 24 months, with an additional half month gross rental
for every subsequent 12 months lease or less.
- Commission (as service fee) payable by Tenant is 1 month gross rental for
lease between 12 month to 24 months, with an additional half month gross
rental for every subsequent 12 months lease or less. This commission as
service fee is only applicable when gross rental is S$2500 or less.
- In a direct transaction (S$2500 & below) by Landlord's Agent with Direct
Tenant, Landlord's Agent will collect both the commission and service fee
payable by Landlord & Tenant.
- In a co-broke transaction (S$2500 & above) by 2 agents, the Landlord's
Agent shall pay half the commission from Landlord to the co-broking Agent.
-In a co-broke transaction (S$2500 & below) by 2 agents, the Landlord's
Agent shall collect commission from Landlord.
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