Rental agreement – Sample Rental Agreement Singapore

Rental agreement

Tenancy Agreement

Following the Letter of intent is duly signed. The landlord will prepare the Tenancy Agreement. Any legal fees incurred for the drawing up of the agreement is usually borne by the tenant. Nonetheless, if the landlord’s agreement is acceptable, there will generally not be any legal fees involved.

If the landlord or the landlord’s agent is using the common IEA agreement, it need to be fine. Your agent will then guarantee that the Tenancy Agreement is fair and unbiased.

You will will need to prepare the rest of the security deposit and advance rental upon signing of the Tenancy Agreement. For 1 year lease – 1 month’s deposit and 1 month’s advance rental. For two years lease – 2 month’s deposit and 1 month’s advance rental. Minus the goodfaith deposit (if applicable) that you have paid when signing the Letter of Intent.

These are the essential terms you ought to take note of when signing the Tenancy Agreement:

1. Diplomatic or Escape Clause and Reimbursement Clause

Check for this clause. This clause is to secure guard you if in the event you are no longer employed, transferred to other countries, you can terminate the lease after 12 months by giving two months notice. Thereafter, the security deposit will be refunded to you. Please note that most landlords will only include the diplomatic clause if the lease is a lot more than a year.

In a normal Singapore Tenancy Agreement, there is normally the reimbursement clause together with the diplomatic clause. This clause states that if you physical exercise the diplomatic clause, you will have to reimburse component of the commission the landlord had paid to his agent.

The cause behind this clause is that the landlord had paid the full 1 month’s agent commission for a two years lease but if you terminate the lease by exercising the diplomatic clause, hence unable to total the full 2 years, you will have to refund the pro-rata commission. Given that landlord grants the diplomatic clause, they will usually demand reimbursement clause to be included in the tenancy agreement.

2. Public Utilities, Telephone and Cable Tv

The installation charges and the monthly bills for the following services are the tenant’s responsibility:

SP Services – the water and electricity supply. City gas – piped gas in chosen regions. Singapore Telecom- residential telephone line. Starhub Cable Vision (SCV) – cable television and cable broadband web.

Although at occasions the tenant can request for some of the fixed bills to be included in the rental quantity as a package.

three. Repairs and Maintenance

The tenant is responsible for sustaining the leased premise, carry out minor repairs at very own costs. In a regular agreement, the tenant will only be responsible if the quantity of the repair does not exceed S0 or S0.

Only main repairs and upkeep would be the landlord’s responsibility provided that the harm or malfunction of appliances is not induced by the tenant’s negligence.

The tenant will have to take up service contract for items such as air-conditioning, gardening, pest control or pool servicing.

4. Rental Amount

Check the rental amount. Occasionally the landlord will divide the rental amount into a. rental of premises, b. rental of furniture and fittings, c. maintenance fees. Just make sure it adds up to the appropriate quantity that you have agreed.

5. Stamp Duty

In Singapore, Tenancy Agreement will require to be stamped by the Inland Revenue Authority of Singapore. Only right after the Tenancy is stamped then it can be thought to be a valid contract as evidence in court for any disputes that may arise in the future with your landlord. This is to protect the interest of both parties. The stamp duty is normally borne by the tenant.

Computation of the stamp duty fee:

One YEAR LEASE OR Much less

(rental amount x 12)
250

then round up to the
nearest dollar and

+ for duplicate copy

More THAN One YEAR to 3 YEARS LEASE

(rental quantity x 12)
250

then round up to the nearest dollar then multiply by two and

+ for duplicate copy

A lot more THAN 3 YEARS LEASE

(rental quantity x 12)
250

then round up to the nearest dollar then multiply by 4 and

+ for duplicate copy

6. Term of Lease

The standard lease period is 1 year or more, with or with out an solution to renew the lease.

Inventory

The landlord will prepare an Inventory List on or prior to the day of handing over. Check the items listed in the inventory. Check all electrical appliances, air-con, lightings, water heater and so on.

If there is something unsatisfactory, do not panic, note it down on the inventory. Even brand new houses have defects, therefore be understanding and permit the landlord to rectify it inside a reasonable period.

Commission

Depending on the duration of the lease, the commission payable to the realtor is – Half a month’s rent for one-year lease and One month’s rent for two-year lease.

Tenant and landlord should guarantee that an invoice from a licenced genuine estate agency is issued to them. Upon payment, do not pay cash straight to the realtor, rather, situation a cross-cheque payable to the realtor’s agency according to the invoice.

We charge the following commission (plus the prevailing Goods &amp Services Tax):
When rental value is S$ three,000 or below Tenant / Landlord – .five month commission for 1 year lease and 1 month commission for two year lease.
When rental cost is above S$ three,000
Tenant – .5 month commission for 1 year lease Landlord – .five month commission for 1 year lease and 1 month commission for 2 year lease.