Becoming a landlord is one of the good passive ways to make an income. In Singapore, one must, however, contemplate on a couple of things to ensure you are not breaking the law. Before we get to that, it is wise to know some of the questions landlords must ask themselves before renting out their property.
How much can my property fetch monthly?
Money is a top priority if you are renting your property. In Singapore, you will not struggle with this question a lot as there is a consolidated rental price by URA and HDB. All the information you need is here www.hdb.gob.sg and www.ura.gov.sg. It is, however, important to note that these prices do not touch on attributes such as floor level, condition, and furnishing of the property and view of the property.
Should I furnish my property before renting out?
If your property is unfurnished, it best to leave it that way as it will fetch more tenants. From there you can furnish the house upon tenant request rather than having to remove if the tenants have their furniture. If you rent your furniture, you will add between 10 to15percent of your monthly rent.
Which cost will I incur for renting out my property?
Landlords often rent out their property and deduct the financial cost to arrive at the monthly rent. It is good to the point that there are unaccounted costs which come when you rent out your property, e.g., repair cost more so for an old building.
Apart from those questions, which other things should you know when renting out your property in Singapore?
Only Singapore citizens can sublet their HDB flat
To do so, you are required to fulfill minimum occupation period before leasing your entire HDB flat. According to HDB, the minimum occupancy period is 5 years and if you bought the flat from open without a housing grant, the minimum occupation period stands at 3 years.
It illegal to rent out your home for a less than 6 months
Whether is private residential properties, HDB flats or individual rooms renting your property should be more than 6 months. People to it anyway but technically they are breaking the law.
You can only rent out a spare bedroom if your house is 3 rooms or bigger
If you own a 3 –room flat or bigger, you are free to rent out the spare bedroom. You have to register your property subletting with HDB within 7 days of renting the room.
Singapore Non-citizens renting a spare bedroom or entire HDB flat must hold a valid pass of more than 6 months.
If renting out your property ensure the non-citizen tenant has valid employment ass, work permit, study passes, long-term social visit passes, dependent passes or s passes. According to current rules and regulation, tourists are not allowed to be subtenants of HDB flats. Also, only Malaysian work permit holder from marine, construction and process sectors can rent your HDB flat. To avoid breaking the law always check the validity of your non-citizen tenant document online to verify their legitimacy.