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What to Consider When Renting Out Private Residential Properties

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Ohmyhome

Do you want to maximise the earning potential of your property? You can rent out your entire condo or just a room. Before you start looking for tenants, keep in mind that there are clearly defined rules about renting out private properties in Singapore.

4 things you need to know about becoming a landlord in Singapore

1. What is the Maximum Occupancy Cap for residential property?

The Singapore government has set a maximum occupancy cap on all types of residential property. Only six unrelated persons can reside in a property at once.

But we have to qualify what “unrelated” means. Unrelated persons are anyone who is not part of the same family. Note that domestic helpers are part of the same family unit. Therefore, a family of six with two domestic helpers is not covered by the occupancy cap.

Now let’s look at what it would look like if you rented out part of your flat. Let’s say you have a family of three: you, your spouse, and one child. If you rent out your condo with your family still residing there, you can only accommodate up to three more unrelated persons as per the occupancy cap.

2. Can I build partitions in my rental property?

If you are serious about renting out your residence, you may consider building partitions to protect the privacy of your family. You may do so as long as it does not change the basic setup of the property as a self-sufficient residential unit. This means everyone should have access to the basic features of the home such as the dining area and the kitchen.

3. Should I register tenants?

Generally, you do not need to register your tenants with the Urban Redevelopment Authority (URA). However, if you rent out your property to an employer who will use it to house foreign employees, the employer has to update the Ministry of Manpower about these employees’ addresses.

4-things-consider-when-renting-out-private-property-singapore-swimming-family

4. Can I offer short-term accommodations?

You are not allowed to offer short-term accommodations If you are going to rent out your property, it has to be in terms of long-term residence. This means your tenant must rent and occupy your property for three consecutive months or longer.
Legally, you can’t convert your property into a bed-and-breakfast or list it on a “home-sharing” platform. Otherwise, you will get fined.

These rules are meant to ensure the safety, privacy, and security of residents, both tenants and landlords.

Interested in earning rental income? Here are some DIY marketing tips for landlords that will help you attract prospective tenants. Make sure you take photos that show your property in the best light.

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