How to Rent Out HDB Room Without an Agent

To help with household expenses, 69-year-old William Chan did what many HDB flat owners do - monetise his asset by renting out a spare room in his three-room HDB flat. In the span of four years, three tenants have come and gone, and none of them registered with the HDB.

53-year-old homeowner Tan XL, on the other hand, has been leasing out two bedrooms in her five-room flat and keeping one room as a storage space while she and her family were living in her parents' flat.

Both William and Madam Tan have unknowingly been flouting the HDB's regulation. Over the years, it can be hard to keep up and comply with the latest HDB subletting rules and its changes. Read on to find the answers you've been looking for before you become a "landlord".

Content

• Do I need to inform HDB if I want to rent my flat?
• Can I rent out my HDB room?
• Who can rent my HDB room?
• Who is not allowed to rent my HDB room?
• Minimum rental period: 6 months
• Maximum rental period: 2 or 3 years
• Can I sublet my rental HDB or condo?
• Can I rent my house before MOP ends?
• Responsibilities of a landlord
• Tenant damaged my property
• Wall painting: Landlord or tenant pay?
• Tenant late with rent
• Use deposit to pay last month rent
• Break rental contract halfway

Do I need to inform HDB if I want to rent out my flat?

Well, you don't actually "own" the unit, you only own the lease for 99 years. Technically, HDB is the real landlord.

This differs from private properties built on 99-year leasehold land; such owners actually own the land for the period of the lease.

Once you have fulfilled the Minimum Occupation Period (MOP) of five years, you are free to sell and profit from your flat.

Fun fact: HDB's Minimum Occupation Period (MOP) used to be three years if you bought an unsubsidised flat without getting a CPF grant before Aug 30, 2010.

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Can I Rent Out My HDB Room?

If you live in a one-room or two-room HDB flat, you are not allowed to rent any bedrooms in your house at all.

For 3-room HDB flats, you're allowed to rent just one bedroom. For 4-room or bigger HDB flats, you're allowed to rent two bedrooms. Most of us may not know this, but each HDB flat should only house up to six people at any time.

If you are only subletting a room, you don't need HDB's approval to do so. However, you nede to inform HDB within seven days after your tenant has moved in or out. This includes any renewals, and changes to your tenants' particulars.

Make sure you continue to live in the flat with your tenants or your rental will be revoked immediately.

Can I Rent Out My HDB Store Room or Bomb Shelter?

No, the living room, bomb shelter, or utility rooms in your HDB flat cannot be rented out.

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Who Can Rent HDB Flat?

You are allowed to rent a HDB flat in Singapore if you are a:

• Singapore Citizen
• Singapore Permanent Residents
• Foreigners with Employment Pass
• Foreigners with S Pass
• Foreigners with Work Permits*
• Foreigners with Student Pass
• Foreigners with Dependant Pass
• Long-Term Social Visit Pass

If you are a foreigner, your pass must have a validity period of minimum 6 months.

*For Work Permit Holders from the Construction, Marine and Process industries, you can only apply for HDB rental if you are a Malaysian citizen.

Landlords should check tenant's immigration status

Before renting out your HDB room, it is your duty to verify your potential tenant's immigration status at the Immigration and Checkpoints Authority's iEnquiry website, and if their passes are valid at the Ministry of Manpower's website.

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Who Is Not Allowed To Rent HDB?

Surprisingly, there are many of us who are not eligible to rent HDB rooms in the open rental market! You are not allowed to rent a HDB room if you are:

• Work Permit Holders from the Construction, Marine and Process sectors who are not Malaysia Citizens
• Owners of HDB flats*
• HDB public rental flats tenants*
• HDB flat owners who are eligible to rent out their own HDB flat (must rent out own HDB too)
• Executive Condominium owners (still serving 5-year minimum occupation period)
• Tourists

If you are a HDB owner, or if you've got a HDB public rental flat under your name, you are exempted from this rule and can rent another HDB flat if you are divorced or legally separated.

However, only one of the divorced or legally separated spouse is eligible to rent a bedroom from another HDB flat owner.

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Minimum Rental Period in Singapore: 6 Months

The minimum rental period in Singapore is six months. You cannot rent any HDB, condominium, or landed property for three months in Singapore.

Short-term rental in Singapore is illegal and will land you in hot waters if your neighbours snitched on you.

Subletting on a short-term basis via websites such as Airbnb is strictly not allowed in HDB flats.

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Maximum Rental Period in Singapore: 2 or 3 Years

Previously, owners could rent out their whole HDB flat for three years per application, regardless of the nationality of the tenants. However, the rules have been revised regularly.

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Can I Sublet My Rental Apartment in Singapore?

Is it legal to sublet a rented HDB or private property in Singapore? Yes, on certain conditions.

Renting out your HDB flat or private property, or even a spare bedroom, can generate attractive passive income.

With the new hefty seller’s stamp duty aimed at curbing speculators, some private property owners may also prefer to sublet instead of flipping their property to avoid a dent in their profits.

Propnex group district director Kelvin Fong and Marcia Lai, director of Faith Property Network, explain 11 misconceptions you need to first understand before you draw up that lease agreement:

Minimum Occupation Period (MOP) Must Be Cleared

To rent out the whole flat, make sure you satisfy the condition of a three- or five-year Minimum Occupation Period (MOP).

For owners of a non-subsidised flat bought off the open market without a housing grant – if your application to purchase was dated before Aug 30, 2010, you need to live there for three years, or five years if your papers were received after this date.

Those who bought a flat directly from the HDB or enjoyed a housing grant from the CPF board must first fulfil the MOP of five years.

Foreigners Must Have Legal Immigration Status

Make sure foreign tenants have valid papers – Employment Pass, S Pass, Work Permit, Student Pass or Dependent Pass.

“Take note of the expiry date and make sure it is valid throughout your tenancy,” says Kelvin.

Keep within the maximum number of six tenants allowed to occupy your home.

Take note that you cannot rent out your flat to owners of Executive Condominium units who have not met their five-year MOP, or to those who own or rent out their own HDB flats. The only exceptions are if the potential tenant is divorced or legally separated, or is eligible to sublet his or her own flat.

Finally, remember to get the HDB’s approval before you rent out your unit. Submit your application at www.hdb.gov.sg.

It costs $20 and allows you to sublet your flat for three years.

Your tenant must also pay stamp duty to the Inland Revenue Authority of Singapore.

The same MOP rules apply to Executive Condominium owners who have taken a grant or bought it directly from HDB.

Only 3-Room & Bigger HDB Flats Can Rent

You are allowed to rent out rooms if you own a three-room or larger flat. For three-room flats, you can sublet one room and for four-room units or bigger, two rooms.

Although you don’t need to seek approval from the HDB, you are required to register your tenant’s details within seven days of subletting a room.

The other rules regarding your tenant’s property ownership status and valid papers for foreigners still apply. “Do take note that your tenant must still pay stamp duty for room rental,” says Kelvin.

Can I Rent My Condo Room? Can.

You don’t have to seek approval from any government agency to sublet private property but do ensure that the duration of your tenant’s work permit is valid to avoid running afoul of immigration rules.

Again – make sure your tenant pays stamp duty.

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Can I rent out my HDB before MOP? No.

"A property agent told me that as long as I lock one bedroom door, I can sublet the rest of my HDB unit before the Minimum Occupation Period (MOP) ends. Is this true?"

No. This is against HDB rules and they can confiscate your unit,” warns Marcia Lai.

The landlord has to physically live in the home if he is subletting his rooms, or fulfill the five-year MOP and other requirements if he opts to let the whole unit.

Homeowner Mrs Liang XL, 34 years old, feared she’d lose her five-room HDB flat when she received a warning letter from the HDB for subletting it illegally.

“I’d thought that as long as I kept one room for my occasional use, it was okay to rent out the rest of the house! Fortunately, because I had fulfilled the MOP of five years, the HDB officer advised me to apply for approval and let me off with a stern warning."

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Responsibilities as a landlord in Singapore

"What are the responsibilities of a landlord, and vice versa?"

The landlord should not disturb the tenant unnecessarily and cannot ask to collect rent before the due date, says Marcia. Make sure all fees borne by the owner are duly paid.

“One tenant who rented an HDB unit was annoyed to come home to a court notice stuck on the gate,” recalls Marcia. “It was issued by the Town Council – turns out the owner had not paid the conservancy fees for months.”

“The tenant must also heed the tenancy agreement, including important terms like ensuring that only registered occupiers are allowed to stay on the premises,” advises Kelvin. “They are not to sublet or sub-divide the unit to lease to others.” If the landlord decides to sell off the apartment, the tenant must also allow pre-arranged viewings.

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Tenant Damaged My Property: What Can I Do?

What happens if my tenant damaged my furniture or electrical appliances?

The rental contract generally comes with a warranty period of one month. All repair costs within the first month are borne by the owner.

After this, the tenant has to bear the first $150 (or depending on the amount agreed by both parties) of repair costs, while the landlord takes care of the rest. For appliances that cannot be fixed, the landlord has to replace it at his own cost.

If your unit comes with air-conditioning, the tenant must get it serviced every quarter, says Marcia. “But if it is beyond repair and the tenant has receipts to prove that he has fulfilled the servicing requirements, he has the right to ask for a replacement.”

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Should Landlord or Tenant Pay For Wall Painting?

My tenant wants me to repaint the walls at my cost, but this was not requested in our contract. Am I liable to pay?

No, says Kelvin. “Any request from the tenant must be accepted by the landlord in the contract. After it is signed, the landlord is not liable to pay for such requests. The tenant must also seek the landlord’s approval if he wants to repaint the walls at his own cost, and must return the apartment to its original condition when he hands it back.”

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Tenant Always Late With Rent: Can I Charge Interest?

My tenant often pays his rent late. Can I impose an interest fee?

“Most contracts state that a 10 per cent interest fee per annum will be charged once the rent is overdue for more than 14 days,” says Marcia.

In one extreme case, a tenant defaulted on his rent for three months despite receiving a Letter of Demand from the landlord’s lawyer that required him to pay up within seven days.

On the eighth day, Marcia accompanied her client to the police station to make a report before evicting the tenant. “Having a police report in hand protects the landlord in case the tenant creates trouble.”

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Use Security Deposit to Pay Last Month Rent

My tenant has asked to use his security deposit to pay and offset his final round of rent. Is this allowed?

Some landlords who let out their room or unit without hiring an agent think there is no harm in doing so.

However, when your tenant hands over the room or unit, you should check against your inventory list and take note of damages or missing items. The security deposit is your safety net to cover the necessary repairs or replacements before you refund the rest.

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Break Rental Contract Halfway

I've signed a one-year contract with my tenant. What happens if one of us wants to back out halfway?

This hinges on how the tenancy agreement is worded. “If you broke the contract and your tenant now has to rent a similar property at a higher cost, you must compensate the difference and for any expenses incurred when they shift to the new place,” says Kelvin.

If your tenant bails out early, he must find you a replacement tenant for the remaining period of the lease. If the new tenant is paying lower rent, your first tenant must cover the difference.

What about the agent’s commission? If this clause is provided for in the contract, the party that defaulted has to reimburse the pro-rated commission to the other side. “Landlords can take these costs out of the security deposit,” says Marcia.

What happens if your tenant has to terminate his contract because he loses his job in Singapore or is posted abroad? This depends on whether you have agreed to a diplomatic clause in the contract and if he can show documented proof from his company.

If he gives sufficient notice as stated in the contract, he is free to leave without incurring any charges.

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