How To Rent Out Your Property in Singapore Without an Agent?

This post was originally posted on Planner Bee.

Renting out your property in Singapore can be a lucrative venture, and the good news is, you don’t always need an agent to do it! With the right tools, platforms, and knowledge, you can handle the entire process yourself, saving on commission fees while staying in full control.

Here’s your step-by-step guide to renting out your property in Singapore without an agent.

Understand legal requirements

Before you start searching for tenants, ensure you fully understand Singapore’s property rental laws. These rules exist to protect both landlords and tenants. Failing to comply with these regulations could lead to fines or even legal action.

1. Minimum rental period

The minimum rental period depends on the type of property:

• HDB flats: Rentals must be for at least six months. Short-term rentals (such as Airbnb or other homestay platforms) are strictly prohibited.
• Private properties: Rentals must have a minimum period of three months, unless special permission has been granted by the Urban Redevelopment Authority (URA).

This distinction ensures proper housing standards and prevents residential areas from turning into de facto hotels.

2. Eligibility to rent out

Not all property owners are immediately eligible to rent out their units.

• HDB flats:Owners must meet the Minimum Occupation Period (MOP) of 5 years. Only Singapore Citizens can rent out their entire flat, while Singapore Permanent Residents (PRs) are restricted to renting out spare rooms. Non-citizen tenants must hold valid passes such as an Employment Pass, S Pass, or Student Pass, valid for at least six months.
• Private properties: There’s no MOP requirement, but all rentals must comply with URA guidelines.

3. Occupancy regulations

The number of occupants in a unit is capped:

• HDB flats: A maximum of six tenants.
• Private properties: No more than six unrelated persons, including tenants and landlords, per unit.

These rules ensure a comfortable living environment for all residents in the building or neighbourhood.

Read more: Singapore Guide on Regulations of Renting a Property

Get your property ready for rent

A well-prepared property can significantly reduce the time it takes to find tenants and maximise your rental income.

1. Property maintenance and presentation

First impressions matter when it comes to attracting tenants. You can ensure your property stands out by addressing common wear-and-tear issues, such as leaky faucets, peeling paint, or loose tiles. Consider upgrades like modern light fixtures or energy-efficient appliances to make the property more appealing.

A spotless property creates a positive impression. Professional cleaning services can be worthwhile if you’re short on time.

Consider whether to rent your property furnished or unfurnished. Furnished properties can attract a higher rental price but may have a smaller pool of potential tenants.

2. Setting the right rental price

Without an agent’s guidance, researching market rates becomes crucial to securing tenants quickly.

You can make use of platforms like Ohmyhome, PropertyGuru, 99.co, or SRX to find rental listings for similar properties in your area and research rental rates.

Consider factors such as the location, proximity to MRT stations, nearby schools, and the condition of your unit.

Last but not least, be realistic.Setting your asking pricing too high might deter potential tenants, while going too low could result in unnecessary losses.

Read more: Will Singapore Condo Rental Prices Drop in 2024?

Market your property

Once your property is ready, it’s time to market it effectively to attract potential tenants.

Marketing is key to attracting the right tenants. Fortunately, several DIY-friendly platforms make this easier than ever. For example:

• Ohmyhome: A user-friendly app that connects landlords and tenants directly, allowing you to list your property for free and chat with interested renters.
• PropertyGuru: One of Singapore’s largest property portals, where you can showcase your property with photos and detailed descriptions.
• 99.co: Known for its comprehensive search filters, this platform helps tenants find properties tailored to their needs.
• Carousell: A popular marketplace where you can list your property under its real estate section.
• Facebook: Join groups like “Singapore Expats Housing” to post your listing and reach a larger audience.

Such platforms allow you to showcase your property with photos, descriptions, and rental terms. Remember to use bright, clear photos that showcase your property’s best features and include essential details like rental price, size, location, nearby amenities, and available move-in dates. Mention any standout features, such as proximity to MRT stations or newly installed appliances.

Read more: For Home Sellers and Landlords: DIY or Engage Property Agent

Screen potential tenants

Choosing the right tenant is critical to ensuring a smooth tenancy.

A tenant might look good on paper, but it’s always wise to dig deeper. Verify their employment and income details to ensure they can afford the rent. Check their immigration status if they’re foreign tenants, as non-citizen tenants must meet HDB or URA eligibility requirements. If possible, speak to their previous landlords to understand their history as tenants.

You may also wish to arrange an in-person viewing with potential tenants. This not only allows them to see the property but also gives you an opportunity to gauge their suitability.

Draft a tenancy agreement

A clear and comprehensive tenancy agreement protects you and your tenant. Include the following:

• The lease duration, start and end dates, and terms for renewal.
• The monthly rent amount, payment method, and due date.
• Details on the security deposit and conditions for its return.
• Responsibilities for utilities, repairs, and maintenance.
• Rules for subletting and early termination of the lease.

Consider consulting a lawyer or using templates provided by trusted sources to ensure the agreement complies with Singapore’s laws.

Manage the tenancy

Your role as a landlord doesn’t end once the tenancy agreement is signed.

Good communication is key to a positive landlord-tenant relationship. Be approachable and address tenant concerns promptly. Maintain an open line of communication for addressing issues like repairs or disputes.

Use communication channels such as WhatsApp or email to keep conversations documented. Clear communication can prevent minor issues from escalating into major disputes.

Additionally, it is recommended to collect a security deposit (usually one to two months’ rent) before the lease begins. Ensure the terms for its return are clearly documented in the tenancy agreement.

Establish a reliable system for collecting monthly rent. Bank transfers are a secure and convenient option. It’s also a good idea to keep detailed records of all payments and transactions.

It is also recommended to schedule periodic inspections (with prior notice) to ensure the property is in good condition and tenants are adhering to the agreement.

Read more: What Are a Condo Landlord’s Duties and Responsibilities?

Fulfil your tax obligations

Rental income in Singapore is taxable, and fulfilling your tax obligations is essential to avoid penalties.

Declare your rental income annually when filing your Income Tax Return. The amount declared should include any rental payments received, less any allowable deductions.

You can deduct certain expenses from your taxable rental income, including:

• Property tax: The annual property tax levied by the government.
• Mortgage interest: The portion of your mortgage payments that goes towards interest.
• Repairs and maintenance: Costs incurred to maintain the property in a tenantable state.

Keep receipts and invoices for all expenses, as these may be required during audits.

Read more: How To Calculate Property Tax Using Annual Value and Property Tax Rate

Renting out your property without an agent might sound daunting, but the process is entirely manageable with the right tools. There are platforms that make marketing straightforward, while readily available templates and resources simplify legal documentation.

Omitting the need to pay the agent’s commission fees means you save a significant amount and have direct control over tenant selection and property management.

With proper planning, you can create a steady stream of passive income while offering tenants a comfortable and secure home.

Happy renting!