Leasing Private & HDB
Tenancy Agreement · Stamp Duty · HDB Subletting Rules · Non-Citizen Quota · Key Tenancy Clauses
4.5aPrivate Residential Rental Rules
| Rule | Private Residential | HDB (whole flat) |
|---|---|---|
| Minimum tenancy period | 3 months (consecutive) | 6 months |
| Prior approval required | No (free market) | Yes — HDB prior approval |
| MOP requirement | None | 5 years MOP must be served |
| Non-citizen quota | No specific quota | Yes — NC subletting quota applies |
| Short-term rental (Airbnb) | Not allowed (min 3 months) | Not allowed |
4.6aHDB Subletting Rules
Whole Flat Subletting
- → MOP of 5 years must be fully served
- → Must obtain HDB prior approval
- → Minimum subletting period: 6 months
- → Non-citizen (NMNC) quota applies to block
- → Maximum occupancy limits apply by flat type
Room Subletting (Owner Still Occupying)
- → Can be done during MOP
- → Only need to notify HDB (no prior approval)
- → Owner must continue to occupy the flat
- → NC quota does not apply to room subletting
HDB Tenancy — Maximum Lease Terms by Tenant Type
| Tenant Profile | Min Period | Max Period |
|---|---|---|
| Singapore Citizen / Malaysian Citizen | 6 months | 3 years |
| Non-Malaysian non-citizen (e.g., PRs, other foreigners) | 6 months | 2 years |
4.5bTenancy Agreement & Stamp Duty
Stamp Duty on Tenancy Agreement
Rate: 0.4% of total rent for the lease period
Example: 2-year lease @ $3,500/month
Total rent = $3,500 × 24 = $84,000
Stamp duty = $84,000 × 0.4% = $336
Must be paid within 14 days of signing (30 days if signed overseas). By convention, usually paid by tenant.
Lease > 4 Years — AAR Formula
For leases exceeding 4 years (or of indefinite duration), a cap applies:
→ AAR (Annual Average Rent) includes: base rent + furniture/fittings charges + advertising/promotion + maintenance/service charges
→ Exemption: If AAR ≤ $1,000 → stamp duty is EXEMPT
Example: 5-year lease @ $4,000/month
AAR = $4,000 × 12 = $48,000
Stamp duty = 0.4% × 4 × $48,000 = $768
(If total rent method: $240,000 × 0.4% = $960 — cap saves $192)
4.5cKey Tenancy Agreement Clauses
| Clause | Purpose & Effect | Protects |
|---|---|---|
| Diplomatic Clause | Allows early termination if tenant is relocated overseas by employer. Typical: after 12 months + 2 months notice. | Tenant (expatriate) |
| Reinstatement Clause | Tenant must restore property to original condition at lease end — remove all additions/modifications. | Landlord |
| Handyman / Repair Clause | Tenant bears cost of minor repairs up to a fixed threshold (e.g., $150–$200 per repair). | Landlord |
| Option to Renew | Gives tenant the right (but not obligation) to renew the tenancy on agreed terms before expiry. | Tenant |
| Quiet Enjoyment | Landlord guarantees tenant won't be disturbed in their use of the property. | Tenant |
| Break Clause | Either party can terminate the tenancy early by giving a specified notice period (e.g., 2 months). | Both parties |
4.5dTypical Lease Deposit Structure
| Item | Typical Amount | Purpose |
|---|---|---|
| Security Deposit | 1–2 months rent | Held by landlord against unpaid rent, damage, or breach |
| Utilities Deposit | 1 month or fixed sum | Covers utility bills if tenant defaults (sometimes waived) |
| Advance Rent | 1 month rent | First month's rent paid upon signing |
| Stamp Duty | 0.4% of total rent | Tax payable on tenancy agreement (usually paid by tenant) |
4.5eLetter of Intent (LOI) & Good Faith Deposit
The Letter of Intent (LOI) is a precursory document prepared by the tenant's RESbefore the formal Tenancy Agreement (TA) is signed. It is marked “Subject to Contract” — meaning it is not yet legally binding.
| LOI Clause | Content |
|---|---|
| Monthly Rental | Agreed monthly rent (inclusive/exclusive of maintenance charges, furnished status) |
| Lease Term | Duration (e.g. 12 months) + option to renew period |
| Commencement Date | Start date of tenancy |
| Payment Terms | Deposit months + advance rent |
| Good Faith Deposit | Cheque attached — financial token to demonstrate genuine intent |
| Security Deposit | Amount to be paid upon signing the full TA |
| Diplomatic Clause | After minimum X months, tenant can terminate with Y months notice if employment in SG ceases |
4.5fProperty Condition Report (PCR)2027 · New · 4.5.9
The Property Condition Report (PCR) documents the state of the leased premises at handover (move-in) and again at handback (move-out). It is the primary evidence used to resolve disputes over security deposit deductions for damage or missing items. The 2027 syllabus explicitly requires RES to know how to prepare a PCR.
| Section | What to record |
|---|---|
| ① Landlord Information | Full name, NRIC/UEN, contact, agency representative (if applicable) |
| ② Tenant Information | Full name, NRIC/Passport, contact, employer (for foreign tenants) |
| ③ Dates | Move-in date · Lease commencement · Move-out date / handback date |
| ④ Property Address | Full unit address including block, unit, postal code |
| ⑤ State of the Property (overall) | Cleanliness · Painted condition · Floor / ceiling / windows / doors condition · Lights working · No visible defects or leaks |
| ⑥ State of Each Room | Living · Dining · Master bedroom · Common bedrooms · Bathrooms · Kitchen · Balcony / yard — record condition per room (walls, floor, fixtures, lights, taps) |
| ⑦ Furniture (if furnished) | Item-by-item inventory: sofa, dining set, beds, mattresses, wardrobes, study desks — condition + photos |
| ⑧ Appliances / Equipment (if provided) | Aircon units (with model + serviced date), washing machine, fridge, oven, water heater, TV — confirm working + record serial numbers |
Best practice — RES role
- ·Attend the joint walkthrough at move-in with both landlord and tenant
- ·Take date-stamped photographs / video of every room, furniture item, and appliance
- ·Both parties sign and date the PCR — each retains a copy
- ·Repeat the process at handback — compare against move-in PCR to assess fair wear-and-tear vs damage
⚠ Why this matters
Without a signed PCR, security deposit disputes routinely fall on whoever has the burden of proof. The PCR is the landlord's evidence for damage claims, and the tenant's evidence that pre-existing defects were not caused by them. Most disputes that reach Small Claims Tribunal hinge on whether a PCR was completed.
Section Quiz
4.5–4.6 — Leasing: Private & HDB
13 questions · 90 seconds each · exam-style difficulty