When it comes to purchasing property in Singapore, it can be difficult to know if renting or buying is the right decision. Not to mention that the application process and different costs can be complicated for some. What’s more, regardless of whether you decide to rent or buy a house, some monthly bills should be catered to; and it is worth exploring various electricity retailers singapore to decrease your monthly household bills.
When it comes to HDB flats, one may rent bedrooms or complete apartments. The master bedrooms usually come with bathrooms, unlike common rooms, which is why they bear higher prices for renting. Some important things to note are that renting a HDB apartment requires approval from the Housing Development Board and bedroom rentals are only available for three-rooms and larger apartments. In addition, mutual agreement on other costs such as utility and water bills needs to be discussed and one’s personal privacy rights.
The rental price of a whole apartment would cost an average of $2,500 to $3,500 per month while a room is much cheaper at a price of $500 to $1,000 per month.
These rental spaces are usually accompanied by convenient facilities such as gyms, cafes, and cleaning services. Renting a one-bedroom apartment would usually cost $2,500 to $6,000 per month while a two-bedroom apartment can cost up to $5,000 to $10,000 per month.
Similar to service apartments, condominiums offer facilities such as gyms and pools right outside one’s doorstep. Not to forget the in-built security system surrounding the property. Renting a complete unit would typically cost from $2,500 to $10,000 per month.
Offering more facilities than service apartments and condominiums, penthouses provide their own personal pools as well as rooftop gardens. These are located on the highest floor of buildings and renting one can cost from $10,000 to $30,000 per month.
Depending on the type of house, location, and size, the rental prices for a landed space can cost between $10,000 to $30,000. Terrace properties are located between two houses, sharing two walls with other landed properties; while semi-detached houses only share one wall. A bungalow would be a stand-alone house that does not share any walls with other neighbors.
When moving into a space, other considerations that one would have to think about would be furniture and decoration. Fully furnished apartments provide everything that one could wish for such as a complete set of furniture and various appliances. Partially furnished apartments come with some appliances, basic light, and curtains installed but may not provide furniture. An unfurnished apartment refers to an empty but renovated flat. The number of items available upon purchase may be negotiated with one’s landlord, however note that rental prices will increase as the furniture in the space increases.
Basic Guide to Renting in Singapore
Before deciding on a rental space, knowing the budget amount first would be crucial for interested parties. This would determine the type of property as well as the desired location within one’s budget range. Some considerations to take note of would be the nearby amenities available such as public libraries and supermarkets, the distance from public transport as well as the composition of family members.
Property websites are good platforms to view available rental spaces around the island. Consulting a property agent is also another alternative. Visiting and making a list of these spaces can also aid in the decision-making process. Do also take note if the apartment or room is in need of any necessary repairs or items, which may be negotiated later before the move-in.
Upon choosing to stay, one would have to sign a Letter of Intent (LOI). An LOI indicates the owner’s intent to lease a space and its accompanying requirements. Inside an LOI contains the Diplomatic/Repatriation Clause which indicates that in the event of losing a job or switching countries due to work, one may end the contract in two months and claim their security deposit.
The Booking/Good Faith deposit of an LOI refers to the rent of one month. After signing the LOI and fulfilling the deposit, the property becomes unavailable to rent for others. The security deposit consists of one month’s rent in a year of leasing the property, which can be refunded once a lease term is over or deducted if a tenant breaches the Tenancy Agreement such as by damaging the rented space. A lease term usually lasts for a year or more and maybe renewed within two to three months’ notice. One may also negotiate for new items in the requirements of an LOI, which will be provided by the owner of the property once signed.
Following the LOI and deposit would be the Tenancy Agreement, which requires an advance payment of rent along with the signing process. Do make sure that the terms and conditions stated are matching in both the LOI and Tenancy Agreement. The person signing is also responsible for the installation and monthly utility charges unless negotiated into the contract beforehand. Repair and required maintenances beyond the tenant’s responsibilities are also paid for by the owner unless they are under $100-200. However, other services such as gardening and pool cleaning will have to be paid from the tenant’s pocket.
It is only valid once the Inland Revenue Authority of Singapore’s stamp has been initiated on the contract, for which the tenant will also be responsible for. Stamp duty is required for leases 4 years and under and consists of 0.4% of the rental price. It is 0.4% of four times the AAR for properties rented for more than 4 years. Agent fees may also be relevant due to their commission and depending on the lease term.
Once the inventory list matches with the existing furniture and a complete set of keys have been given to the tenant, one is able to move into the space. Do not forget to check for any defects in the rented space as well and follow the steps patiently. Renting in Singapore can be a simple and rewarding process if done right.