In recent months, Singapore has rolled out new rules and regulations for renting out one’s HDB or Private Property. To save you time, we have categorised this article into HDB & Private, please click on the relevant link below to jump right into the subject of your interest:
From 1st January 2017, you can no longer rent your whole HDB to non-Malaysian work permit holders from the manufacturing sector. You will only be allowed to rent out your rooms to these people.
I am currently renting out my entire HDB to non-Malaysian work permit holders from the manufacturing sector. Will this new rule affect me?
Yes. With this new rule, you will not be able to renew the lease with your existing tenants who are non-Malaysia work permit holders from the manufacturing sector.
Can I rent my entire HDB to non-Malaysia work permit holders from other sectors?
You are not allowed to rent the entire flat to non-Malaysian tenants who hold work permit from construction, manufacturing, marine, and process sectors.
Can I rent out my entire HDB to a company?
Yes. You can rent out the entire HDB to a company but you have to ensure the occupiers or the company’s employees residing in your HDB must have valid passes and the new rule applies.
Since I cannot rent out an entire flat to non-Malaysian work permit holders from construction, manufacturing, marine, and process sectors, can I rent out all my rooms through individual room rental?
No. There are maximum numbers of bedrooms you can sublet based on your flat type. For a HDB 3-room, you can only rent out 1 room. For HDB 4-room and bigger, you can only rent out a maximum of 2 rooms.
To maximise rental income, there are landlords circumventing the rules and regulations. You are strongly advised not to circumvent the rules and regulations. HDB does conduct regular checks to take enforcement action against unauthorised subletting and it’s not worth the risk.
For your information, the above FAQs are answered based on the assumption that you are eligible to rent out your HDB. If you have further questions regarding the new rules, do let us know by using the comment form below or you may check out HDB for detailed rules and regulations on renting your HDB.
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.
With his love for numbers and data, Edwin has provided valuable insights to his clients and readers to empower them to make better-informed real estate decisions.
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