| Q1: |
What
are the types of lease practiced in Singapore? |
|
There are 2 types of lease practiced
here. The first type is the fixed term tenancy, where there is a specific
commencement and terminating date. The second type is known as the period
tenancy, where the lease continues to be valid every week, until the
landlord serves notice to the tenant to terminate the tenancy.
|
| Q2: |
Do
I need to have my lease in writing? |
|
If you are renting the place for less
than 3 years, the law does not require you to have a written tenancy
agreement. However, it is advisable to have a lease in writing even
if they are only renting the premises for one or two years, to avoid
any dispute regarding the terms of lease with your tenants.
|
| Q3: |
What
are my obligations as a Landlord? |
|
In addition to those obligations stated
in the Tenancy contract, the law does imply the following obligations
for the Landlord:
a) For quiet enjoyment of the land by
the tenant
b) Not to "derogate from his grant"
or act in such a way as to frustrate the purpose for
which the property was to be let.
c) For furnished premises, the landlord
must ensure that the premises are fit for human
habitation at the start of the tenancy
d) Pay all property taxes and quit rent
(if any)
e) Be responsible for external repair
and insurance
|
| Q4: |
What
are my Tenant's obligations? |
|
Generally your Tenant's obligations include:
a) To pay rent "without any deductions
whatsoever"
b) Responsible for internal repairs
c) Not to make any alterations without
the landlord's prior consent
d) To use premises for the permitted
purposes only
e) Not to assign or sub-let any part
or all of the premises without the landlord's prior consent
f) Obligation to pay all taxes and rates
for which the landlord is not liable
g) To allow the landlord access to view
the state of the premises if there is a covenant
to repair
h) Not to sub-let or assign the lease
without the landlord's prior consent, which shall not
be unreasonably withheld.
|
| Q5:
|
What
actions can I take if my tenant fails to pay rent? |
|
If your Tenant has failed
to pay rent for a continuous period (depending on what was stated in
the Tenancy contract),you can obtain a writ of distress from the Court
which authorizes the sheriff to seize and sell goods inside your property
and recover rent (and legal costs) from your Tenant. You also have the
right to re-possess the property.
|
| Q6: |
How
much should I pay my agent for getting a Tenant to rent my property? |
|
Generally, landlords will pay the agent
the amount of 1 month rent for a 24 month lease. For a 12 month lease,
half-month rental is payable to the agent.
|
| Q7: |
Do
I have to pay a commission to the agent if I am the Tenant? |
|
It depends. You only pay if the rental
is below $2,500 per month.
|
| Q8: |
Who
pays for the stamp duty? |
|
The Tenant pays for it.
|
| Q9: |
What
is the "diplomatic clause" in a tenancy agreement? |
|
It is a clause which allows the tenant
to legally end a fixed term lease before the full term, if the tenant
has to leave Singapore for good.
|
| Q10: |
Can
I claim part of the commission I paid to the agent, if the tenant uses
the diplomatic clause to end his lease? |
| Unless
you had prior agreement with the agent in writing, it would be almost
impossible for you to claim any money paid out to him.
|
| Q11: |
Will
I be required to vacate the property if my landlord sells it before the
end of my lease? |
|
If you have signed a fixed term tenancy,
you will just need to pay the rent to the new owner. If your lease is
a periodic tenancy then the new owner is entitled to give you a notice
for the same period of your tenancy to leave the property.
|
| Q12: |
Are
my rental proceeds taxable? |
|
Yes. They are taxed as income and after
deducting property tax, repair and maintenance costs, interest payments
to the banks and the like to generate income for the property.
|
