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Step One : Decide on your Relocation Requirement
a.
Determine your rental budget you want to set for your new home. Include
expenditure such as Public utilities, telephone, cable TV, cleaning
services into your budget. Discuss onset with your Company on the
housing allowance if you are on expatriate term.
b.
The housing budget will largely predetermine the type and location of
housings you will be able to afford. In any case, decide what type of
housing suitable you or your family needs. Condominium with facilities
and security will be ideal for families. Or you may want a bungalow with
a private inground pool for your regular entertainment etc.. To each
his own, discuss with your family.
c.
Choosing the right location is of paramount importance. This will
determine the daily convenience not just for you but also your family
members. Check out the nearest MRT station or bus stops in the vicinity.
Ensure that there are schools nearby suitable and available for the kids
too.
d.
Do
you and your family have any special needs or wants? Big land with a
black and white bungalows? Penthouse in the choicest location? Or is
there a need for the new home to be close to nature, peace and quiet?
High floor facing the ocean or city views? Or something …
Knowing what you need is the basic first step to getting you the best
home away from home
Step Two : Engage a Real Estate Agent
A
professional real estate agent in Singapore will assist you and protect
your interest throughout the tenancy. Being a professional in the
industry, the agent will be in a better position to recommend you a
suitable property meeting your varied needs at the same time securing
the best offer for you. He will also ensure that all Tenancy documents
are in order and you are signing and dealing with the rightful owners of
the property you selected.
We
have the expertise and resources to assist you in all your relocation
needs. We provide an updated list of comprehensive property listings
here on this site online. Our Singapore Properties section covers a wide
range of housing selection including condominiums, apartments, houses
and commercial properties in Singapore. Special housing needs are also
grouped separately for easy and fast selection.
Hot deals in town are also available from time to time. You may be able
to secure something you want at a real bargain!
Step Three : Viewing and Selection of Properties
Normally, the Real estate agent will pre select a list of properties
that will meet your requirement. Round of viewing inspections will be
arranged to show you the pre-selected properties including the immediate
vicinities and surroundings. Subsequent second viewings can also be
arranged to confirm final choices.
When you have finally decided on the property, the agent will then
proceed to negotiate the rental terms and offers with the landlord or
the owners’ representatives. After the negotiation has been successfully
carried out, you will need to prepare the following item to confirm the
tenancy:
§
A
photocopy of the tenant passport
§
A
photocopy of the tenant employment pass
§
One month's rental for the goodfaith deposit
Your agent will then prepare the necessary tenancy documents such as the
Letter of Intent and Tenancy Agreement.
Step Four : Tenancy Documentation
A. Letter of Intent
The Letter of Intent, LOI in short, is a letter proposing your intention
to lease the property and your requirements to the landlord.
You should take note of the following:
1.
Term of Lease
In
Singapore, the standard lease period is normally 2 years, with or
without an option to renew the lease. The lease renewal is usually for
another 1 to 2 years. However, I year lease is also acceptable in the
current market condition. For the lease renewal option, the landlord
would normally required the tenants to give 2 or 3 months' advance
notice of their intention to renew. Generally, most landlords are
reluctant to accept leases that are less than 1 year.
2.
Goodfaith Deposit
This is the booking deposit, and the amount is usually equivalent to one
month's rent. After the landlord signed the Letter of Intent and accept
this deposit, he cannot rent the said property to any other party. This
deposit will become part of the security deposit or advance rental after
the legal Tenancy Agreement is signed.
3.
Security Deposit
The amount of the security deposit is usually stated in the Letter or
Intent. The standard practice in Singapore is usually one month's rent
for every year of lease. It will only be payable upon signing of the
Tenancy Agreement. When the lease term ends, the security deposit will
then be refunded without interest. However, the landlord 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.
4.
Tenants’ Requirements
The premise can be rented either Fully Furnished or Partially Furnished.
Fully furnished means the apartment or house you are renting comes with
all the furniture and all the essential electric appliances such as
refrigerator, washer and dryer and curtains, lightings.
Partially furnished apartments or house usually only comes with
essential electric appliances such as refrigerator, washer and curtains,
lightings without furniture. Although a house may be partially furnished
at the time of viewing, you can always request the landlord to fully
furnish it or request him to get the items you require. All these
requests and special requirement are subject to negotiation and will
also eventually determine the final rental amount.
The Tenant must ensure that all their requirements and requests are
stated in the Letter of Intent clearly. The requirement could be a
request for fresh coat of paint, a new sofa, additional beds or TV or
whatever etc. After the landlord committed to the request by signing the
Letter of Intent, he is bound by the Letter to provide your requests.
5.
Diplomatic or Repatriate Clause
This clause is to safe guard tenant if in the event the tenant are no
longer employed, transferred to other countries, you can terminate the
lease after 12 months by giving 2 months notice.
Thereafter, the security deposit will be refunded to you.It should be
noted that most landlords will only agreed to the inclusion of the
diplomatic clause if the lease is 2 years or more.
B. Tenancy Agreement
After the Letter of intent is duly signed. The landlord or his agent
will prepare the Tenancy Agreement.
The Tenancy Agreement
sets out the rules landlords and tenants agree to follow in their rental
relationship. It is a legal contract, as well as an immensely practical
document full of crucial business details, such as how long the tenant
can occupy your property and the amount of rent due each month. Be sure
your agreement complies with all relevant policies and local laws
including occupancy rules, immigration policy, Condominium management
rules and regulations, security deposits, notice requirements for
entering rental property, diplomatic clauses or rules for changing or
ending a tenancy and more.
It
is always preferred that the landlord or the landlord's agent uses the
standard IEA agreement. Your agent will then assist you to ensure that
the Tenancy Agreement is fair and unbiased toward any parties.
Here are some of the
most important items to cover.
1. Names and Particulars of Landlord and Tenant
The names, passport or NRIC No and corresponding addresses
of both Landlord and Tenant should be in your Tenancy agreement. This
makes each party traceable or contactable at all times to comply with
the term of the tenancy.
2. Term of the Tenancy
In
Singapore, the standard lease period is normally 2 years, with or
without an option to renew the lease. The lease renewal is usually for
another 1 to 2 years. However, I year lease is also acceptable in the
current market condition.
For the lease renewal option, the landlord would normally required the
tenants to give 2 or 3 months' advance notice of their intention to
renew. Generally, most landlords are reluctant to accept leases that are
less than 1 year.
3. Rent
Your lease or rental agreement should specify the amount of
rent, when it is due (typically, the first of the month), and how it's
to be paid, such as by mail to your corresponding address.
4.
Security Deposit
Corresponding to the LOI, the deposit is usually one month's rent for
every year of lease. It will only be payable upon signing of the Tenancy
Agreement. When the lease term ends, the security deposit will then be
refunded without interest. However, the landlord 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.
5.
Diplomatic or Escape Clause and Reimbursement Clause
As
mentioned before, this clause is to safe guard you if in the event you
are no longer employed, transferred to other countries, you can
terminate the lease after 12 months by giving 2 months notice.
Thereafter, the security deposit will be refunded to you.
In
a standard Singapore Tenancy Agreement, there is usually the
reimbursement clause together with the diplomatic clause. This clause
states that if you exercise the diplomatic clause, you will have to
reimburse part of the commission the landlord had paid to his agent.
The reason behind this clause is that the landlord had paid the full one
month's agent commission for a 2 years lease but if you terminate the
lease by exercising the diplomatic clause, hence unable to complete the
full 2 years, you will have to refund the pro-rata commission. Since
landlord grants the diplomatic clause, they will usually demand
reimbursement clause to be included in the tenancy agreement.
6.
Public Utilities, Telephone and Cable Television
The installation charges and the monthly bills for the following
services are the tenant's responsibility.
-
SP
Services - the water, electricity and city gas supply.
-
Singapore Telecom - residential telephone line.
-
Cable TV (SCV) - cable television and broadband internet.
There are times where the tenant can request for some of the above bills
to be included in the rental amount as a package.
7.
Repairs and Maintenance
The tenant is responsible for maintaining the leased premise. The tenant
will have to take up service contract for items such as
air-conditioning, gardening, pest control or pool servicing. The Tenant
will also carry out minor repairs at own costs. In a standard IEA
agreement, the tenant will only be responsible if the amount of the
repair does not exceed S$100 to S$200 depending on the housing type.
Major repairs are under the landlord's responsibility provided that the
damage or malfunction of appliances is not caused by the tenant's
negligence.
Step Five : Tenant’s Payments
1.
Security Deposit and Advanced Rental
You will need to prepare the rest of the security deposit and advance
rental upon signing of the Tenancy Agreement.
For 1 year lease : 1 month's deposit and 1 month's advance rental.
For 2 years lease : 2 month's deposit and 1 month's advance rental.
Minus the goodfaith deposit (if applicable) that you have paid when
signing the Letter of Intent.
2.
Stamp Duty
The Tenancy Agreement will have to be stamped by the Inland Revenue
Authority of Singapore. Only after the Tenancy has been stamped then it
can be submitted as a legal and valid evidence in court to resolve any
disputes that may arise in the future with your landlord. This is to
protect the interest of both contracting parties.
The stamp duty is usually borne by the tenant and computed as follows
|
(rental amount x 12) |
Round up to nearest dollar then multiply by the no. of
years of lease |
+ $2 for duplicate copy |
+ $4 for admin fees |
|
250 |
3.
Agency Service Fee payable by Tenant
a)
One year Tenancy term
The agency service fee payable is half month rental
b)
Two years Tenancy term
If
the rental amount of the apartment / house you are renting is above
$2,500, NO agency service fees will be payable by the tenant.
c) If
the rental amount is exactly $2,500 or less, the service fee payable will be
half month rental
Step Six : Taking Over of Premises
The landlord or his agent will prepare an Inventory List on or before
the day of handing over. The PUB will have to be turned on by this day.
Check off the items listed in the inventory.
Check all electrical appliances, air-con, lightings, water heater etc to
ensure that they are in good working condition.
If
there is anything not working or working unsatisfactory, note it down on
the inventory list. Allow the landlord or his workmen to rectify the
defects within a reasonable period.
Home sweet home !!
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