Renting a room or a whole apartment is not as simple and straightforward as checking into a hotel, primarily because it’s for a much longer period. Lucky are those who have found a fair and reasonable landlord, but we’ve all heard enough landlord-tenant dispute stories to not want to be caught in the middle of one ourselves.
This is where the Tenancy Agreement comes into play. It cannot be stressed enough that this important document must only be signed after careful examination of its clauses. This is to ensure that, should any dispute arise during the course of your tenancy, you have your rights well protected.
Nobody wants a landlord-tenant relationship to come to this but it happens often enough
If this is going to be your first time renting a property in Singapore, here is a list of the most common items that you will find in a tenancy agreement:
- Date in which contract is signed
- Actual date of moving in
- Rental duration (minimum 6 months, usually 1 – 3 years)
- Option to renew the lease after the rental period is over
- Landlord and tenant’s legal full name, NRIC/passport/FIN number and permanent address (in Singapore or home country)
- Tenant and occupiers’ nationality and immigration status
- Diplomatic clause and Reimbursement clause
- Address of the rental property
- Rental amount, due date and payment grace period
- Payment of utilities and subscription/licence fees, if any
- Other miscellaneous fees such as agent’s commission and stamp fees
- Security deposit
- List with details (brand, serial number etc.) and condition of all items in the property
- Use of premises and its up keeping
- Tenant’s covenants (to pay rent, to not sublet, to repair, to allow the landlord to enter for specific reasons)
- Landlord’s covenants (to provide premises that is well suited for human habitation, and to provide “quiet enjoyment” and “exclusive possession” of the premises)
- Notices
- Termination of lease
- Suspension of rent
- Anticipatory breach
Don’t be rushed into signing the tenancy agreement. Read every line carefully.
While most of these details are fairly standard, there are those that you ought to pay careful attention to so as to ensure that they are not worded to your disadvantage or omitted altogether. Here are a few of such items.
The diplomatic and reimbursement clauses
The diplomatic clause is especially important if you are a foreigner who has come to Singapore for the sole intention of employment. Let’s say you’ve signed a three-year lease. With the vagaries of today’s market, what happens if your employer’s business folds or they decide to transfer you to another country or, worse, they decide to let you go during this 3-year period?
Alternatively, it may be you who decide to leave Singapore for extenuating personal circumstances? Wouldn’t you be caught in a bind should you have many months to go before your lease is up?
As a safeguard, you should request that a diplomatic clause be included in your tenancy agreement should there not be one in the first place. Basically a diplomatic clause allows you to give up your lease of the property before the lease period is official over without having to pay a heavy penalty. The penalty portion will come under the Reimbursement Clause.
Amongst others, both clauses will stipulate how much notice period you should give your landlord (typically two months), how much you should reimburse the landlord (typically a portion of the agent’s fees for the remaining period of the lease), and that this diplomatic clause can only be effected after how many months of rental (usually 12 months).
The security deposit
Remember when you were about to check out of a hotel and they keep you waiting while they send someone up to check your room? That’s because they wanted to make sure you’ve left the room in the same state as when you checked in. That is, no missing towels, hairdryers or television sets (!), otherwise you will be billed for those missing items.
Be civic-minded: Leave it the way you found it
Well, the same goes for when you rent someone’s property. To protect themselves from runaway/negligent tenants, it is only fair that landlords request for a security deposit. Usually the amount depends on the length of lease, such as a month’s security deposit for one year’s rental, two months for two years and so on.
This deposit will be refunded in full upon satisfactory inspection of the premises, and deducted accordingly otherwise. It can even be used to offset any unpaid rents, but cannot be used in lieu of rent during the course of renting the premises.
Maintenance of the premises
Though these cases don’t frequently happen, we’ve heard or read of landlords who unscrupulously set out to cheat their tenants. To avoid being caught in such a disadvantaged position, take precaution by taking stock of the condition of the premises and its effects right from the outset.
By this, we mean to take photographic proof. Ask the landlord for a grace period (usually one month) whereby you can document the state of the premises, furniture and furnishings. Be sure to be totally fastidious in doing this. Leave no stones unturned. You certainly don’t want to end up paying for something that is of no fault of yours, such as ugly cigarette burnt marks on the sofa when neither you nor your family smokes.
Supposing that your landlord plays fair, then how do you want to come to an agreement on the maintenance of the premises? When a light bulb blows, does that come under yours or your landlord’s purview? How about when the washing machine breaks down? The carpet seems worn after three years of occupancy?
Let’s go through them one by one. In the case of the light bulb and washing machine, let’s be reasonable too. If the landlord didn’t give you some junk to begin with, as a tenant, you should also understand that every household item has its limits too. If the malfunction is within reason and within your means, be a gentleman (or lady) and pay for it. There’s no point being overly petty because, as they say, what goes around comes around.
But if the bill of the repair work is pretty hefty, usually there’s an agreement between the landlord and tenant as to how much each should pay. As a ballpark, the tenant may offer to foot $150 of the tab while the landlord takes the rest. Make sure that this is put down in writing to avoid future arguments.
Now, how about the carpet or curtain that has lost its former glory? Again, this boils down to how both you and the landlord want to play. For the reasonable minded, we understand that nothing in this world remains in its original pristine condition after a period of time, especially if it is subject to continuous use or exposure to the elements. In such cases, having a clause stating that the landlord would not fault the tenant for items that have lost their lustre due to “fair wear and tear” is but only reasonable.
Alterations and additions
In the above section, we discussed the maintenance of the premises, which ideally is to keep it at its “as is” condition. Now let’s look at the opposite.
How about tenants who go to the far end in “making themselves feel at home”? For instance, they may decide to take down a wall to make the living room more spacious or decide to install some racks that involve drilling? If you’re such a tenant, watch out for the “alterations and additions” clause, if any. You don’t want to do something that will give rise to complications with your landlord somewhere down the line.
Even in the absence of such a clause, it doesn’t hurt to check with the landlord first before doing anything. It saves any ugly arguments later on.
If you are only renting a room, there may be certain things that you want to check with your landlord before moving in. For example, the use of their fridge for small items, the use of their washing machine or yard to hang your laundry. All these small matters may snowball into big pain points if not addressed. Remember, what you want should be a win-win situation; an agreement, not an argument.
“Quiet enjoyment” and “exclusive possession”
Earlier on in this article, we mentioned the above two terms. So, what do they mean?
They may be the legal owners but landlords still cannot come and go as they please
Simply put, the premises still belongs to the landlord even though now you’re renting it. Does that mean that the landlord can come and go as he/she pleases? Of course not, right? That would be a clear invasion of privacy. Just as the landlord wouldn’t want you to mess with his/her house and belongings even though you’re renting it, likewise you – the tenant –do not wish for someone to rummage through your belongings too.
This is what is meant by “exclusive possession”. No one, not even the landlord, is permitted to enter the premises without your express consent.
As the law works both ways, how about protecting the rights of the landlord? In such a case, there should be a clause stating the circumstances in which the landlord can enter the premises, such as for inspection, renovation/repair works, or viewing by prospective tenants. Other than these circumstances, the place is all yours for your “quiet enjoyment”.
The right of re-entry
Having said the above, there are of course cases where landlords have the right to enter the premises without your express permission, even going to the extent of evicting you. These would be cases of non-payment of rent, using the premises for purposes other than its original intent, or any other activity that goes against the terms of the agreement. So, make sure, you read your agreement carefully before signing it. Clear any doubts and ask for changes to clauses if necessary.
When all has been settled, it’s finally time for you to move in to your new home; your home away from home. Welcome to Singapore!
In this article, we’ve highlighted the clauses you need to take note of before signing that tenancy agreement. If you want to know more, schedule a visit with us or book a free consultation with our trusted and renowned representatives.
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