Asked by Anonymous
Asked on 25 Sep 2018
Curious on the financial, legal, or practical aspects such as tax implications, permits, contract terms, etc. Bit more background - I'm single PR and waiting for my citizenship application result. If successful, I'll be eligible to purchase resale HDB under Single Citizen scheme. Current plan is to purchase a 3-room flat then rent out the extra bedroom while still living in the master. Would like to hear if this is a workable plan. Thanks!
Top Contributor (Sep)
Sorry to tell you this.
Only Singapore Citizens are allowed to rent out the HDB flat.
Singapore Permanent Resident flat owners are not allowed to do so.
The above is the RIGHT way.
If u catch what i meant.
Hope my reply helps.
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I'm staying with my sis and she has two rooms rented out recently. The first thru my agent friend and the second thru a friend recommendation so we DIY.
Before you do anything, best to go down to HDB branch office to check you and your tenant eligibility to rent.
For the first tenant, we just list out our rental criteria and leave it to my agent friend to help me get all things done including viewing and negotiating the price. Getting an agent really help since it's our first time renting out. The only thing we do once we gotten the tenant's detail is to go to HDB website to register the room rental (latest by 7 days after she moved in) and you need to pay $10. You will receive an instant reply once approved.
For the second tenant, with experience from the first, we DIY. We use the TA template from the first on my second tenant. We did all our due delligence check on our second tenant making sure her eligibility to rent and her pass and permit are allowed to rent by going down to HDB branch office to verify. Then when I gotten her details, I went straight to register with HDB for the room rental and paid another $10. When my second tenant shift in, I proceed to help her pay rental stamp duty (bound by tenant and there's a dateline to pay).
As for income tax, we have yet to come to it so will share once we experience it.
HDB has too many rules and regulations so if you are not sure just go down to check with them.
Even tho there's extra income, we are still getting use to strangers around the house and adjusting ourselves.
All the best to your rental journey.
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26 Sep 2018
Top Contributor (Jun)
Yes there's tax involve as you need to submit the tenant details to HDB within 7 days.
When you declare personal income tax, you need to declare this as rental income.
Tenancy contract you can get agent to do or find a template online. CASE has some sample template. There's GST and stamp fee involve which is chargable to tenant. Note that if you do not stamp the tenancy contract with HDB (by paying stamp fees and getting the stamp number etc) , it is not legal binding and hence it is not recognize under the law in case of dispute.
Eligiblity can read here at HDB website:
3 room HDB max stays 6. So minus yourself maximum can rent out to 5 pax.
The minimum rental period for each tenant must be 6 months per application. You are not allowed to rent out your bedrooms on a short-term basis, as it may disrupt the living environment and pose security concerns for our residents.
The maximum rental period is:
Other T&C, read:
It is a workable plan since if you rent out to 2 pax and collect about $700 to $800, you can use it to cover your HDB installment. The rental landlord charge tenant usually include utilties, broadband etc typically according to market practice.
So your actual net income is less than this as you also have to cater for tax payable.