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Lease Renewal vs New Lease

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Renewal types

  • Renewal option in TA — original TA includes a clause giving the tenant a unilateral right to renew on stated terms (e.g. another 12 months at market rent or +5%). Rare in Singapore residential rental.
  • Mutual renewal — both parties agree to extend, with a fresh TA. Most common scenario.
  • Holding over — tenant stays past lease end with landlord's implicit consent. Usually a month-to-month tenancy is implied at the previous rent until either party gives notice.
  • New lease — fresh negotiation, possibly different terms / rent / period.

Side-by-side comparison

AspectRenewal (fresh TA)New lease
PartiesSame landlord, same tenantMay differ
PropertySame propertyMay differ
RentOften increased to market rateNegotiated fresh
DepositCarried over (top-up if rent up)Paid in full at signing
Stamp duty0.4% on new term and rent0.4% on new term and rent
Inventory listOften same; review for changesFresh inventory required
Diplomatic clauseCarried over or renegotiatedNegotiated fresh
Agent commissionOften half of new lease commission, negotiableFull commission (typically 1 month)
ReinstatementNot required (continuing tenancy)Required at end of new lease

Renewal negotiation

Typical timeline: 2 months before lease end, parties begin discussion. Landlord proposes new terms (often with rent revision). Tenant either accepts, counter-proposes, or signals exit. Renewal completes at least 1 month before lease end to allow stamping and any deposit top-up.

Rent revision is the main negotiation item. Where market rents have risen since the original lease, landlords push for increases; tenants push back citing comparable rents in the area and the value of an existing, uncomplicated tenant.

Worked example — renewal with rent increase

  • Original lease: $3,500/month, 12 months. Deposit: 1 month = $3,500.
  • Renewal: $4,200/month, 12 months. New deposit requirement: 1 month = $4,200.
  • Deposit top-up: $700 (= $4,200 − $3,500).
  • Stamp duty: 0.4% × ($4,200 × 12) = $201.60.
  • Agent commission (if applicable, often half on renewal): ~$2,100 (half of one month).

Related guides

Frequently asked questions

What's the difference between a lease renewal and a new lease in Singapore?▾

A renewal extends or replaces an existing TA between the same parties for the same property. A new lease is a fresh agreement — often with different terms, possibly different parties, or different property. Most 'renewals' in Singapore involve signing a fresh TA (with updated rent) rather than just extending the old one, so they attract fresh stamp duty.

Do I pay stamp duty again on a lease renewal?▾

If a fresh TA is signed: yes, full stamp duty on the new term and rent. If the original TA contains an explicit renewal option exercised on the same terms (a rare scenario): the renewal may be treated as a continuation and no additional duty may be payable — but most arrangements end up as a new TA. In practice, expect to pay fresh stamp duty on every renewal.

What happens to the security deposit on renewal?▾

Typically the deposit is carried over to the new term. If the rent has gone up, the landlord may request a top-up to bring the deposit to 1 month per year of the new lease. If the rent has gone down, the deposit is usually not refunded — the landlord keeps the higher amount.

Can the landlord refuse to renew at the end of the lease?▾

Yes. Unless the TA contains a binding renewal option, neither party is obliged to renew. The tenant must vacate at lease end (or earlier per agreement). 'Holding over' (staying past lease end without consent) exposes the tenant to a daily holdover rent (often double the contracted rent) and possible court action.

Should I sign a 1-year or 2-year lease?▾

A 1-year lease gives flexibility but means stamp duty (0.4%) is paid annually and possible rent increases on each renewal. A 2-year lease locks in the rent for the longer period (good in a rising market, bad in a falling one) and amortises the stamp duty effort over more months. Many tenants choose 2-year leases with a break clause at 12 months as a compromise.