Singapore Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Singapore's landlord and tenant laws are judged by the Global Property Guide to be Pro- landlord between landlord and tenant. Singapore's rental laws tend to be more pro-landlord, but with certain protections in place for tenants, especially in the case of public housing.
Rent: Can landlord and tenant freely agree rents in Singapore?
In Singapore, tenancy agreements can take the form of either leases or licences, and the distinction between the two is significant.
A lease grants the tenant a legal interest in the property, effectively giving them certain rights tied to the land itself. In contrast, a licence is merely a personal agreement between the landlord and the occupant, allowing the latter to use the premises for a limited duration without creating any proprietary rights.
Tenants under a lease typically enjoy greater legal protections. These may include the right to assign the lease to a third party, depending on the nature of the property, and the ability to enforce the lease even against new owners. A tenant with a lease may also bring claims for nuisance or trespass. A licensee, on the other hand, lacks these rights—they cannot transfer the agreement to someone else, nor take legal action for such interferences.
When it comes to public housing managed by the Housing and Development Board (HDB), strict regulations apply. One key rule is the Minimum Occupation Period (MOP), which must be fulfilled before an HDB flat can be rented out. Additionally, the minimum rental period is six months for HDB flats and three months for private condominiums. Offering properties for short-term stays, such as through platforms like Airbnb, can violate Singapore’s housing regulations.
Deposits
The tenants usually pay a security deposit of one month's rent for every year of the lease. The security deposit is returned without interest. However, some corporate landlords demand three months' rent for a two-year lease. One month's advance rental is also required.
What rights do landlords and tenants have in Singapore, especially as to duration of contract and eviction?
Each tenant must be rented the flat or bedroom for a minimum period of six months per application. Short-term rentals are strictly prohibited, as they can disrupt the residential environment and raise security concerns for other residents.
The tenant has to pay the rental stamp duty. The rate is 0.4% of the total rent for the lease period if it’s four years or below.
A tenancy can only be terminated when either the landlord or the tenant provides the required notice to end the agreement. The notice period should correspond to the length of the tenancy, which is often determined by the frequency of rent payments. For example, if rent is paid monthly, the typical notice period would be one month. The standard minimum notice period is usually 30 days. To ensure accuracy, it’s advisable to review your tenancy agreement.
How effective is the Singaporean legal system?
Most landlord and tenant disputes are resolved through mediation or Alternative Dispute Resolution, usually under groups such as the Consumer Association of Singapore (CASE) and Singapore Mediation Center (SMC). A formal court proceeding can also be utilized, but this is usually longer and more expensive.
Legislation
There is no comprehensive law dealing with landlord and tenant relations. General provisions pertaining to landlord and tenant relations are mentioned in the Civil Law Act, Distress Act, Evidence Act, and several other laws. Singapore follows the English common law system.