Private Condominium / Eligible Executive Condominium
Announced by Minister Lawrence Wong on 6 Feb 2017, it is now officially illegal to rent out whole unit or rooms for a period of less than 3 months, unless approved by Urban Redevelopment Authority (URA). Also, you can only rent to a maximum of 6 unrelated tenants in a private condominium / executive condominium, down from the previous maximum of 8 unrelated tenants.
This new rule will take effect on 15 May 2017. On and after 15 May 2017, private residential properties can only be rented out to no more than six unrelated persons. However, existing tenancies that accommodate seven or eight persons will be allowed to run their course until the cut-off date of 15 May 2019. After this two-year transition period, the occupancy cap of six unrelated persons will apply regardless of any existing tenancy agreements.
What are unrelated tenants?
At this point of writing, we are unable to find the official definition of “unrelated tenants”, if you know the official definition, do let us know. We will also update this once we have it. Before that, from our understanding from the ground, “unrelated tenants” refers to colleagues, friends, or complete strangers etc. And that would mean “related” refers to family members, i.e., related by blood, marriage, adoption or legal guardianship.
Can I rent out to a family with more than 6 members?
Yes. The occupancy guideline does not apply if the entire unit is occupied by a family with no subletting involved. Reference: https://www.ura.gov.sg/uol/guidelines/development-control/change-use-premises/sections/yv-Permissible-Uses/Landed-Housing/subletting
Can I rent out to a family with more than 6 members, including a domestic helper?
Yes. The domestic helper has to be directly employed by the family.
Can I rent out property with 3 months lease and have a clause that allows early termination?
We are aware that there some landlords renting out their private property with the minimum contractual terms of 3 months lease but added an no penalty early termination clause to circumvent short-term leasing. We strongly advise against that as there are risks involved. Plus, these risks outweighs the rental income you can get from the short term rental.
So, if you are still using AirBnb or doing short rental, it is time for you to move into long-term leasing. You do not want to be penalised for unauthorised rental, it’s simply not worth it.