Top 5 Tourist Attractions in Singapore
Top 5 Tourist Attractions in Singapore Singapore, a vibrant city-state located in Southeast Asia, is known for its diverse culture,...
Read More
TLDR
When it comes to understanding property jargon, it’s crucial to familiarize yourself with the specifics of a Tenancy Agreement (TA) in Singapore. This legal document outlines the rights and obligations of both landlords and tenants, covering aspects such as rental payments, property maintenance, and clauses like the “Exclusive Possession” and “Fair Wear and Tear.” Prospective tenants should pay close attention to the details in the TA and be aware of clauses that may allow them to break the lease, such as the diplomatic clause. For landlords looking to add clauses, seeking advice from a property agent or lawyer is recommended to avoid misunderstandings. Understanding the nuances of a TA is essential, as not all agreements are the same, ensuring a smooth rental experience for both parties.
Every once in a while, I like to take some of the confusion out of property jargon and demystify it for all.
Today, let’s focus on the Tenancy Agreement (TA) – the legal document that establishes the agreement between a landlord and tenant, detailing all their rights and obligations, as well as any potential repercussions for not following the agreement.
In Singapore, the Tenancy Agreement is not as standardized as in some other countries, giving rise to an array of peculiar terms.
For instance, some Tenancy Agreements forbid the consumption or cooking of certain foods, while others may even prohibit activities like running a business or mining Bitcoin from home.
Nevertheless, the Council of Estate Agencies (CEA) has provided a template document, although its use is not mandatory. This may change in the near future; for now, it is possible to create another Tenancy Agreement with unusual terms.
Prospective tenants should never jump to conclusions about the TA, but should instead pay close attention to the details!
The TA serves as an agreement between the landlord and tenant, outlining the details of the lease for the property.
What is in the TA?
A tenancy agreement will usually include the following:
The details of the tenants and landlords.
Tenant’s covenants: The tenant pledges to abide by their commitments: such as, but not limited to, regularly paying rent, maintaining the unit in a clean state, and refraining from subletting the premises illegally.
Landlord’s covenants: The landlord pledges to respect their tenants’ privacy by not entering the unit without permission, keep the unit in a sound structural condition, and return the security deposit when the lease expires, among other promises.
In Singapore, the tenant is typically responsible for covering the costs of utilities like electricity, water, and Wi-Fi.
Tenants typically assume responsibility for repairs up to a certain limit (generally S$150 – S$300) – after that, landlords take over and cover the rest.
Please provide the specifics on when and how the rent needs to be settled.
A tenant may be able to break the lease due to certain clauses, such as the diplomatic clause, or any other situation that permits them to do so.
It pays to be mindful that not all TAs are alike; thus, you may find differences. No matter if you have experience renting a home in the past, don’t assume that everything is the same – it’s best to always be prepared!
If you’re a landlord wishing to add an extra clause to your Tenancy Agreement, you may want to seek advice from a property agent or lawyer. Don’t forget to make the clause clear to potential tenants to avoid potential misunderstandings in the future!
Here are some of the clauses to watch out for:
The “Exclusive Possession” Clause
“The ‘quiet enjoyment’ clause is an essential component of the Tenancy Agreement – it guarantees that the tenant will be able to use the premises without any disturbance from the Landlord!”
Tenants have the right to deny entry to the premises, as if it were their own – even to the landlord! Consequently, should the landlord wish to enter the residence to make renovations or showings, they must seek permission from the tenant.
The “Fair Wear and Tear” Clause
Tenants have a responsibility to keep the house and its contents in great shape – unless the damage is caused by normal wear and tear, in which case they are not responsible.
Furthermore, the landlord cannot keep a portion of the security deposit to cover any of these damages – for instance, if the kitchen sink pipe breaks because it is two decades old, it’s not on the tenant to fix the issue.
But, if the tenant attempts a DIY repair and something goes wrong, then the responsibility to repair the damage lies with them.
The meaning of fair wear and tear is open to interpretation, however, it is expected that common sense is used.
To illustrate, the landlord can’t ask the tenant to redecorate the entire condo simply because a few patches of paint have peeled.
The Diplomatic Clause
The diplomatic clause is a lifesaver for those from overseas who have to unexpectedly end their rental agreement in Singapore – for reasons such as a job relocation, dropping out of university, or any other reasons.
With this clause, all that’s required is a two month notice period prior to departure and, usually, the clause is only valid after a tenant has been living in the property for twelve months or more.
The “Right of Re-entry” Clause
If a tenant breaches any of the conditions of the lease agreement, the landlord has the right to end the tenancy. The most common cause is failure to pay rent on time; the Tenancy Agreement should clearly set out the terms, including what happens if rent is not paid within 21 days of the due date.
Landlords have the right to end the lease if the tenant breaches any of the conditions.
Be on the alert for tenancy agreements with abnormal or omitted clauses. For instance, if the TA states that the landlord can retake the property if you fail to pay rent (with no time frame specified), you could be evicted even if you are a single day late with the rent!
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 : Nationalities Of Prime Property Buyers in Singapore
Singapore, a thriving city-state known for its stable political climate, excellent infrastructure, and strong economic fundamentals, has long been an...
Read More
6 Reasons to Think Twice Before Hiring a Friend or Family Member as Your Agent
TLDR In Singapore, hiring a friend or family member as your property agent can be risky. Disclosing sensitive financial details...
Read More
5 Impacts Of The Singapore Government’s Cooling Measures On Property Investing
The Singapore government has implemented several cooling measures over the years to regulate the property market and prevent it from...
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Singapore's property market has been a hot topic of discussion for many years, with its resilience and growth attracting both...
Read More
Will New Launch Condos See a Drop in Prices Soon?
TLDR The real estate market in Singapore is experiencing a trend of lackluster bids for prime properties in various locations....
Read More
Retiring in Singapore? Here’s Where to Find the 5 Best Property Investments for Comfort and Security!
Retirees have unique needs when it comes to property investments. They require properties that offer comfort, security, and easy access...
Read More
Top 5 Rules for Investing in Singapore’s Property Market – Expert Insights!
Investing in Singapore's property market has long been considered a lucrative and stable investment option. With its robust economy, strong...
Read More
Maximize Your Property Investment: 5 Questions to Ask Your Real Estate Agent in Singapore
Buying a property in Singapore can be a daunting task, especially for first-time buyers. It is important to have a...
Read More
Top 5 Places to Buy Local Art in Singapore
Singapore, a melting pot of cultures and traditions, is not only known for its breathtaking cityscape, delectable food, and shopping...
Read More
Why The URA Master Plan Matters For Your Property’s Potential
TLDR The URA Master Plan entails significant shifts like the relocation of Paya Lebar Airport or creation of Punggol Digital...
Read More
Top 5 Factors : Singapore Real Estate Investing vs Stocks and Bonds: Which is Better?
Investing is an essential aspect of wealth creation and financial planning. With a plethora of investment options available, it can...
Read More
Top 5 Things to Do in Singapore on a Rainy Day
Singapore, the beautiful island city-state, is known for its sunny weather and stunning attractions. However, even in this tropical paradise,...
Read More
5 Most Affordable Areas to Invest in Property in Singapore
Singapore is known for being one of the most expensive cities in the world, particularly when it comes to property...
Read More
Calculating Your Property’s Annual Value in Singapore 2024: A Simple Guide!
TLDR Understanding your property's annual value is crucial for determining property taxes in Singapore. The annual value is based on...
Read More
Should We Reconsider the ABSD Rates?
TLDR We explore the need to reevaluate the current Additional Buyer's Stamp Duty (ABSD) rates in Singapore, considering their impact...
Read More
Snag a Sentosa Condo for 40% Off? Should You Consider It!
TLDR The Residences at W Singapore Sentosa Cove has slashed prices by over 40%, but there are important details to...
Read More
5 Reasons Why Condos Are The Best Real Estate Investment in Singapore
Investing in a condo in Singapore is a popular choice for both locals and foreigners. Condominiums offer a range of...
Read More
Don’t Miss Out: Take Control of Your Life in Your 30s and 40s
TLDR The stages of wealth management vary from ages 30 to 80, with different focuses and considerations at each stage:...
Read More
