 INFORMATION
FOR EXPAT TENANTS -
HOUSING AND DEVELOPMENT (HDB)
APARTMENT RENTAL SYSTEM IN SINGAPORE
Last updated:
01 Sep 2006 |
Research supported by
Asiahomes Internet. This Singapore real estate research report on the HDB system is
sponsored by Asiahomes Internet.
This webpage was published in 1999 and has been updated.
Email from South America
Sun Mar
07 19:56:26 1999
Sat, 06 Mar 1999 08:42:21 -0300
DEAR SIRS,
MY HUSBAND AND I LIVE IN .... BUT HE GET
A JOB IN SINGAPORE AND WE WOULD
LIKE TO RENT A HDB APARTMENT. AS WE HAVE NO KIDS YET, ONE BEDROOM OR TWO
IS ENOUGH FOR US.
WE JUST GET MARRIED , SO WE WOULD LIKE SOME PRIVACY, SO WE WOULD LIKE TO
KNOW IF WE CAN RENT A HDB ONLY FOR BOTH OF US OR WE HAVE TO SHARE WITH
ANOTHER PEOPLE. AS WE BOTH FOREIGN WE ARE TRYING TO UNDERSTAND
HDB SYSTEM YET. IF YOU CAN HAVE US
SOME IDEA ABOUT PRICES WE WILL BE GLAD.
Expats relocating to Singapore to note:
1. If they rent units
with "one
room locked",
they are violating Singapore
Government regulations if the Owner does NOT reside in the apartment. HDB
officials may be knocking at your doors, usually in the evenings if there
are complaints of
illegal
subletting.
2. Try to rent an HDB apartment with official approval, otherwise you may
face sudden eviction or blackmail. Unfortunately, there are very few units
with official approval. Such approval is given to a few Owners who
are:
living abroad or have to live and work in their shop houses or look
after ill parents by living in the parent's residence. It may be
better to rent a private apartment. Rents have dropped to as low as
S$1,200 for older private apartments. Contact
judy@asiahomes.com for details.
3. The
HDB system
(in reply to the
abovementioned email) is that foreigners can rent HDB bedrooms,
not the whole apartment if the
Owner does not have official
approval. In this situation, the Owner must be sharing
the apartment with the tenants or landlords.
Most foreigners, especially newly married, don't like this arrangement.
Therefore, the Owner "locks one room" to show the HDB official that he is
only subletting the one or 2 bedrooms and this is perfectly legal
if the Owner really lives in the apartment.
Some Owners do go back a few times a week but most don't. The HDB has
publicised in the newspapers some years ago that they do not recognise the
"locked one room".
However, it will need private investigators and surveillance to prove that
the Owners have sub-letted the whole apartment. Realtors had had been
warned by the HDB officials, the biggest Landlord in Singapore that their
licences will be revoked if they are involved. Nowadays, the wordings
"locked one room" no longer is advertised.
How are Owners caught?
3.1 Complaints from neighbours to the HDB. Most Singaporeans don't do that
unless the illegal Tenant of the apartment is a nuisance.
3.2 Tenants renting
the "locked one room" opens a utilities account in Tenant's name.
3.3 The rent for the
"locked one room" apartment is higher than if one room is sublet.
3.4 The penalty is
the loss of the apartment and this had happened before.
3.5 Many foreigners will rather not be involved in breaking Singapore law
and since the rent of private properties have dropped by at least 30% in
most cases, the tendency is to rent private housing. They are worried that
they may lose their employment passes or work permits by participating in
illegal subletting. However, HDB apartments are still much cheaper to many
expatriates and are value-for-money. Some of the 3-bedroom and maisonettes
are really spacious and there are so many amenities, markets and shops
within the neighbourhood.
3.6 Some Caucasian
wives dislike being the only foreigner in HDB neighbourhood and have heard
of horror stories of urine smell inside elevators. The majority of HDB
elevators nowadays do not have urine smell.
3.7 It is very risky for HDB owners, especially older folks and children,
to lift a long bamboo pole of wet clothing out of the HDB kitchen window
and then swing it and pull it back to fit it into the pole holder. One may
over-stretch and fall down the apartment block.
It is hoped that the new generation of HDB architects may resolve this
problem of having to hang clothing on bamboo poles but this is the
cheapest method of drying clothes, using sunlight.
3.8 It is better to
rent the newer units, less than 5 years old.
UPDATE IN 2003 - Relaxation of the
HDB flat renting rules
1. Since Jan 1, 2003, an owner who is NOT receiving an HDB subsidy
or loan for his HDB apartment, has lived for at least 10 YEARS in a flat
bought on the RESALE market can lease out the whole unit. Around 15,000
HDB owners are eligible to lease out their entire units under this scheme
but very few do so.
2. Around 7,400 flats were given approval for a full lease at end of Dec
2002 based on criteria in
living abroad or have to live and work in their shop houses or look
after ill parents by living in the parent's residence.
3. There are around 738,000 HDB flats at end of Dec 2002.
4. A single HDB bedroom rents around $200. A 3-bedroom HDB flat rents
around $1,000 - $1,500 depending on size, location and quality.
There are around 783,000 HDB flats at end 2002.
UPDATE IN 2004 - Relaxation of the
HDB flat renting rules
HDB owners can rent out
their apartments even though they have received an HDB subsidy or loan for
his HDB apartment. It is best to phone the HDB or consult your housing
agent as regards the latest ruling. HDB charges a fee, around $20, to
approve the leasing of the whole HDB apartment as well as informing the
Comptroller of Property Tax.
UPDATE IN 2006 - 2007 Relaxation of the HDB flat renting rules
HDB owners can rent out
their apartments with HDB approval. Best is to get professional advice
from the housing agent or go to the HDB to get the latest ruling.
SERVICES
PROVIDED BY ASIAHOMES.COM -
HOUSING AND DEVELOPMENT BOARD (HDB)
APARTMENT/CONDO/HOUSE MANAGEMENT FOR ABSENTEE OWNERS OVERSEAS
|
Our housing agents
manage HDB and other condos for absentee owners. Many Singaporeans have to
work overseas and will need a housing agent to professionally manage their
apartments especially in monthly checks for illegal occupants, attending
to queries from the government authorities, collection of rentals,
advertising for tenants and making sure the apartment is well maintained
and providing a monthly e-mail report to the owners.
Our management fees start from S$150 per month and may be up to S$300.
This fee includes monthly inspection and check on illegal occupants and an
e-mail report to the owners. An exclusive management and marketing
agreement is required. Minor repairs and advertisements for rental at
least once per week are payable in advance by the owner. Additional
apartment or house visits are charged at S$30 per visit.
We try to minimise expenses for the absentee owners. Owners are advised to
use their own contractors for minor repairs. Do contact
judy@asiahomes.com if you need
rental housing or rental housing management.
Asia USA Realty |
