Renting a home in this red hot property climate in Singapore may seem like the end of the world with the notoriously high rental rates. It also doesn’t help that affordably-priced rental units are flying off the shelves, people are throwing money, beating competition, and paying deposits without even viewing the rental apartments.
We’re living in a landlord’s market.
Take a look at the rising interest rates and you’ll see that HDB rents have been rising for 24 consecutive months up to July 2022, while condo rent prices have been increasing for 18 months straight.
The median rental price for a 4-room HDB flat in central Singapore costs a whopping $3,050 per month from April to June 2022.
Need to find the cheapest rent in Singapore? Here are seven tips to help you lower your rental price:
1. Check Out Nearby Rentals for Cheaper Prices
Sometimes, choosing a unit just one MRT station away from your desired location will reap you significant savings that will definitely add up if you’re looking for a long-term rental contract.
For example, you may want to stay in Bishan because of its relatively close proximity away from the CBD, and the convenience of sitting on both the North-South Line (NSL) and the Circle Line (CCL). If you look at the rental prices for Bishan, the median price for a 4-room flat is $2,600 for the second quarter of 2022. But compare it to Ang Mo Kio that’s just a stop away, it stands at $2,400 for a 4-room flat.
Just one MRT station away, you get to save about $200 per month, which translates to $2,400 per year. In exchange, you can just add about five to ten minutes of extra commuting time. But if you ask me, that’s pretty worth it.
2. Look At Rent Quantum Price instead of PSF
When shopping around for a house to rent, you may be tempted to seal the deal for a unit with a very low PSF. But if your unit is large, your rental may come up to a price much more expensive than the normal market price.
Consider an HDB flat that is $6 psf for a 300 sq ft one-room flat. That comes up to about $1,800 per month. But if you were only to compare psf and choose a flat that is only $4 psf but with a room area of 500 sq ft, that amounts to $2,000 a month, having you spend an extra of $200 per month!
Also, when looking at homes, sometimes you might want to purchase one home over the other because of the extra 50 sq ft. If you’re looking at a psf of about $5, that will amount to an extra $250 per month. But if you really think about it, the extra room won’t really make much of a difference especially if you’re renting a larger unit.
In such cases, is the $250 truly worth it? Or are you better off saving the extra few hundred?
3. Share Rental Apartment with Roommates
If you’re one who values privacy and having your own space, renting out an entire unit may be quite important to you.
However, if you’re on a budget, having roommates will make more financial sense if you share the rent between two or three of you and rent a larger unit.
You can consider negotiating and getting the master room instead with an en-suite toilet, so you won’t have to share the common toilet with your flatmates.
Take a look at the rental rates now and you will see that the average rent price is about $2,000 for a 1-room HDB flat. But if you rent a 3-room flat with another roommate, the average rent now is about $3,200, making it $1,600 per person per month.
For extra savings, a 4-room flat would cost you about $3,600, making it only $1,200 per person if you have two other flatmates.
4. Get Unfurnished or Partially-Furnished Rentals Instead
It is no secret that renting a fully-furnished apartment complete with a TV, washing machine, fridge and sofa will come at a higher price.
Not many people will realise that moving in with furniture in place also has some hidden costs — damaging any of them will subject you to losing a portion of your security deposit as well.
However, sometimes it may make more financial sense to do so, especially if you’re renting a home for a short-term stay. Purchasing all these appliances and furniture won’t be worth it at all.
However, if you’re moving in with your family for the long haul of a few years, you can consider sprucing up the home with your own furniture, so you can style the home to your desired aesthetic.
5. Ask Landlord or Property Agent to Cover Maintenance Costs
Before you sign a lease, it’s extremely important to read through the clauses carefully. If you’re renting a room, it is common practice for your landlords to be covering some costs:
- Utility charges like water and electricity charges, internet, cable subscriptions, condo maintenance fees etc
- Maintenance/repair fees for items within the apartment
- Air-conditioner servicing
However, if you’re renting as the main tenant, you might have to bear these costs yourselves, which might greatly add to your financial burden.
Just think about it, servicing your aircon can cost upward of $400 to about $800 a year. There’s no harm asking in if your landlord can bear these costs with you, or if they are open to splitting the expenses.
On top of that, landlords can actually claim utilities and Wi-Fi tax deductions, so having them bear these costs can become a win-win situation for both of you.
6. Be the Rental Unit’s Main Tenant and Sublet
If you look around, there are actually rental contracts that allow you to sign on as the main tenant and sublet other rooms to other tenants. This creates a way for you to reduce the amount of rent you’re paying if you can mark up the price a little to cover a portion of your rent.
However, this runs the risk of you having to pay even more than you need if you do not manage to find other tenants to sublet to. So do check if it’s a financially wise decision before you commit to it. If you personally think that the rent for a single room is within your budget, maybe it will give you a greater peace of mind just going ahead with a single room.
But before you do so, make sure you check with your landlord and your contact to make sure you don’t run into any legal issues and risk being evicted. It’s also important to note that there are some rules you can’t break, like erecting partitions, ensuring that each person has at least 10 square metres of space and not exceeding eight people living in the same unit.
7. If You Just Sold Your Home, Rent Back Your Own Unit
Yes, you read it right. If you’re looking for a home to rent because you’ve just sold off your place and your new abode won’t be renovated in time, you can try to make a deal with the next homebuyer to rent out your place. This will allow you to stay past your possession date, if you know that the new owners are in no rush to move in.
This is the best case scenario if you can’t find another house in time, without paying higher premiums for the last minute notice. Besides, you’re already so used to your own space and location, might as well make the best of it! You can always offer a lower purchase price in exchange for staying in your home for a couple more months to save on temporary accommodation and extra storage fees.
There’s really no harm in asking. If you are engaging a property agent, you can also ask them to help you negotiate as well and come to a consensual agreement that can benefit both parties.
Rental in Singapore – A Beginner’s Guide
Also, arm yourself with the basic knowledge of renting in Singapore before you go for house viewings – just so you’ll know how to negotiate with the landlords and their property agents:
1. Rental Price: Depends on Location
Price of rental can vary widely depending on location and the type of housing you choose. Renting a room in a public housing (HDB) versus a private (eg. condominium) one can vary by two to three times the rent.
For example, rental price for a HDB room can vary between $900 to $2,000, with the latter price usually seen for the ones in close proximity to the CBD or town area. If you are looking to rent an entire HDB flat, prices will depend on the number of rooms within, as well as the location and proximity to public transport.
Rental for a whole HDB flat can range between $2,000 to $4,000.
For condominiums, room price starts from $1,500 and go up to $3,000 for a central location in a new apartment with fancy facilities, such as swimming pools, gymnasium and sauna facilities. Similar to HDBs, prices for renting the entire condo ranges widely, from about $3,000 for a small studio apartment up to a neat $10,000+ for a penthouse.
Four things to consider before you rent:
- Budget
- What do you prioritise? Location, facilities, or privacy?
- Do you need the whole apartment, or just one room?
- Lease term: How long do you need to rent for?
By thinking through these four criteria, it should help you to narrow your search, especially now that you can apply multiple filters on the numerous property websites online.
2. Rental Rules and Regulations in Singapore
While we do not want to bore you with legal terms regarding a rental contract, there are generally three key rental regulations you must know in Singapore:
- Diplomatic or Repatriate Clause
- Rental Clause
- Rental Legality
Diplomatic or Repatriate Clause
The clause is a safeguard for foreigners in the event that one is no longer employed or is relocated during the lease period. You can terminate the lease after a year by giving 2 months’ notice under this safety clause. The standard lease period here in Singapore is 2 years and do note that most landlords will only include the diplomatic clause if the lease lasts more than a year.
Rental Clause
The rental clause basically lists all the items related to your lease. This includes the length of the lease and any kind of payments you need to make during this period. To sum it up briefly, these includes:
- Term of lease and termination clauses
- Rental payment + any utility charges
- Property inventory
- Any maintenance or repair fees for items within the apartment or your room
The common practice here is to provide a 1 month deposit for a 1-year lease and 2 months’ deposit for a 2-year lease. Utilities can either be shared between you and your housemates or provided for by the main tenant. In terms of condominium maintenance charges, the norm is for the landlord to bear the costs.
Rental Legality
Many foreigners may not know that HDB owners are only allowed to sublet their entire flat after a minimum 5 years occupancy. Some owners try to go around this clause by locking up one of their room doors to consider it “occupied” by them. As a tenant, you can request for the letter of eligibility to sublet the flat from the owner.
If you are looking to rent on a short term basis without a work pass, do note that you are not legally allowed to rent a HDB room for less than 6 months.
Some home owners may not be familiar with these rules so if you are unsure and do not want to get into trouble, it might be better to engage a real estate agent who will be able to give you advice on your tenancy agreement.
Part of this article first appeared on Singsaver.
