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Last updated: 12 Jul 2000

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1998 Case study updated by AsiaHomes Internet
Renting a brand new condo.
How much should the furnishing allowance be?

Client: English couple, mid 30s, no children
Budget: S$4,000 - $6,000.
Husband’s office: Raffles Place. Regional office.
Apartment wanted: UE Square Condo, 3+1, rectangular layout, sunshine. After 20 viewing, decided on a 15th floor UE Square 3-bedroom at $5,500 fully furnished

Email query from expat:

Am I right in assuming that the letter of intent is adequate until March or do I need to sign off on lease now? I only question this from a legal standpoint since the company will not be registered until March 6th?

Also, on the furnishings. Mrs Yeo seemed to indicate that for the $5,500 she would include some furniture such as beds and she mentioned something to me about a sofa bed for the 3rd bedroom...

Let me have you acct details if you are going to give Mrs Yeo a cheque and I will wire deposit to you


From: David Sing [SMTP:drsing@asiahomes.com]
Sent: Thursday, February 12, 1998 5:57 AM
To: SE
Subject: Re: Lease UE Square

The Letter of Intent is subject to contract and conditions and therefore is not adequate. The lease contract will be preferred because it spells out what are the conditions and has the safeguards.

Is there a name for the local company? We can put it inside the contract.

Please take time to think about inventory list and write down what you want in the Letter of Intent given to you by the Landlord and I will talk to them. I thought you wanted your own bed?

The client was took the high floor (rarely available in UE Square Condo to date  (November 1998) as many units were still not released by the Developer or the Owners had gone for holidays or could not be bothered.
  • The Letter of Intent was not adequate as it was subject to contract. The Owners could then put in unreasonable terms such as $2,000 rental budget or insist on providing old furniture, as a higher offer might be waiting. The co-owner might have objections.
  • The UE Square Owner took the prospective tenant for dinner and both had a satisfactory happy understanding as regards the amount   furnishing. I was not present.  It was the start of a good landlord-tenant relationship.
  • The $12,000 rental budget was meant for the items listed so that the Englishman (being a foreigner) and the regional manager would have furnishing befitting his status. The lights were delivered on the day of viewing and I advised that it be returned so that the Tenant could pick his choice.
  • The first-time Landlords had considerable expenses in furnishing apartment, but then "quality furnishing" will attract next Tenant.
  • This case has to be properly advised as the Tenant relies much on the realtor. In this case, if the Landlord insists on an insufficient $6,000 budget, I would recommend the Englishman to seek another apartmetn.
  • Many Landlords provide a furnishing budget is 80% of 2 months’ rental or 2 months’ rental but much depends on what the rental amount would be. 

    The budget usually would not include curtains, lighting, washing machine and refrigerator in most cases.  In this case, $12,000 budget includes the washing machine, dryer and refrigerator.
  • It is extremely risky renting a brand new condo and leaving the Owner to purchase the living, dining and bedroom sets as I know of at least one case given the poor quality stuff, although rental accepted was above market rate.

    My client said "he could get better quality furniture if he could wait to rent UE Square Condo later" as he paid $4,000 for a 2-bedroom in Parkwing 2nd floor in November. At that time, few units were available as the temporary occupation permit was just issued.
  • To help other expatriate new-comers, a copy of the tenancy agreement (approved by Landlord’s lawyer) and real case queries from the client are attached below.

An example of a tenancy agreement used.


AN AGREEMENT made February 13, One thousand nine hundred and ninety-eight between Ms …… & Md …., Singapore 437913, (hereinafter called "the Landlord") which expression shall, where the context so admits include the person for the time being entitled to the reversion immediately expectant on the term hereby created and YYYl Corporation, 9 Raffles Place, #2X-WW, Republic Plaza, Singapore 048619 (hereinafter called "the Tenant") which expression shall, where the context so admits, include the successor in title and assigns.


1. The Landlord agrees to let and the Tenant agrees to take all those premises known as UE Square, 205 River Valley Road, Parkwing #15-WW, Singapore 238274 (hereinafter called "the demised premises") and such of the furniture and fittings in or about the demised premises as per inventory annexed (hereinafter called "the furniture") from March 14, 1998 to March 13, 2000 for a term of two (2) years (hereinafter called "the said term") at the monthly rent of Dollars Five Thousand and Five Hundred (S$5,500) apportioned as to Dollars Three Thousand and Three Hundred (S$3,300) for the demised premises, Dollars One Thousand and Eight Hundred (S$1,800) for the furniture, and Dollars Four Hundred ($400) for maintenance and car park fees, clear of all deductions payable in advance on the 14th day of each calendar month by electronic payment (GIRO), the first of such payments to be made on February 12, 1998 to be applied as good faith deposit which will form 50% of the March 14, 1998 payment due. On or before March 10, 1998, the other 50% will be paid.

2. The Tenant hereby agrees to do the following:

2.1 To pay the said rent at the times and in manner aforesaid.

2.2 To deposit with the Landlord on the signing of this Agreement on or before March 10, 1998 the sum of Dollars Eleven Thousand (S$11,000) by way of security for the due performance of the Tenant's covenants hereunder which sum shall not be used to set-off against rent and shall be refunded to the Tenant without interest on the expiration of the said term on due performance as aforesaid otherwise the said sum deposited shall be credited against any loss or damage suffered by the Landlord arising from the Tenant being in default of any of his obligations hereunder and if the deposit shall not be sufficient to cover such loss or damage then the Tenant shall on demand pay to the Landlord the difference between such loss or damage and the said deposit.

2.3 To pay all charges for water, electricity and gas consumed in the demised premises payable to the competent authorities in respect of the demised premises and all charges for the telephone/s, cable television installed therein.

2.4 To observe all regulations rules and restrictions as to user or otherwise of the demised premises as shall have been made or imposed from time to time by the Developers or Management Corporation of UE Square of which the demised premises form part and keep the Landlord indemnified against any breaches thereof by Tenant.

2.5 To keep the interior of the demised premises and the Landlord's fixtures, furniture and fittings therein in good and tenantable repair and condition throughout the tenancy (wear due to fair and reasonable use and damage by fire to be excepted, save where the insurance moneys are rendered irrecoverable in consequence of the gross negligence of the Tenant).

2.6 To keep and deliver up the furniture and the said effects in as good a condition as they are now in (allowing for the reasonable use and wear thereof) and not to remove any part thereof from the demised premises and, if at the termination of the tenancy any of the furniture or said effects shall have been broken, damaged, lost, or rendered useless, to replace with articles of the same sort and equal value to those broken damaged lost or rendered useless and repair such furniture or said effects as shall be damaged or pay to the Landlord the amount or value of the loss or damage.

2.7 Not to make or permit to be made any alterations (structural or otherwise) to the demised premises without first obtaining the written consent of the Landlord and upon the expiration or sooner determination of the said term to restore the demised premises to their original state and condition.

2.8 Not to assign, sublet or otherwise part with or share possession of the demised premises or any part thereof for all or any part of the said term without the written consent of the Landlord, which shall not be unreasonably denied. This provision shall not apply to Tenant's families and guests.

2.9 To use the demised premises as a residence and not to do or permit to be done upon the demised premises anything which in the opinion of the Landlord may be or may become a nuisance or annoyance to or in any way interfere with the quiet and comfort of the occupants of adjoining premises or any other adjoining occupier or the neighborhood and not to use the same for any illegal or immoral purpose.

2.10 Not to keep or permit to be kept on the demised premises or any part thereof any material of a dangerous nature or the keeping of which may contravene any local structure or regulation or by-law or in respect of which an increased rate of insurance is usually or may actually be required or the keeping of which may cause the fire policy in respect thereof to become null and void.

2.11 Not to fix or install any further or additional electrical points and electrical appliances in or about the demised premises without the prior written consent of the Landlord, Developers or Management Corporation of UE Square and/or the relevant authorities and upon such consent being given to carry out the same at the Tenant's own cost and expense and in compliance with all conditions imposed on the Tenant in respect of such consent. To clarify the foregoing, personal computers and related peripherals are not considered to be electrical appliances for purposes of this section.

2.12 To permit the Landlord and respective agents with or without workmen or others at all reasonable times to enter the demised premises, accompanied by Tenant or Tenant's representative, to view the state and condition thereof and within fourteen (14) days after the Landlord and the person or corporation managing the Condominium shall have given to the Tenant or left on the demised premises a notice in writing of any defects, decays, or wants of reparation found thereupon in accordance with the obligations herein contained well and substantially to repair and make good the defects, decays, or wants for which the Tenant is liable under the terms of this Tenancy Agreement. Provided that if the Tenant shall not within fourteen (14) days after service of such notice commence and proceed diligently with the execution of the works specified as aforesaid it shall be lawful for the Landlord the person or corporation managing the Condominium known as UE Square and their respective agents and workmen to enter upon the demised premises and execute such repairs and works and the reasonable cost thereof (which expression shall include but not be limited to all legal costs and surveyors' fees and other expenditure whatsoever attendant thereon) shall be a debt immediately payable by the Tenant to the Landlord.

2.13 Upon the receipt of any notice, order, direction, or other thing from the Government or any competent authority affecting or likely to affect the demised premises whether the same shall be served directly on the Tenant or the original or a copy thereof be received from any other person whatsoever, the Tenant will so far as such notice, order, direction, or other thing or the Act, regulations, or other instrument under or by virtue of which it is issued or the provision hereof require Tenant so to do comply therewith at his own expense and will forthwith deliver to the Landlord a copy of such notice order direction or other thing. Clarifying the foregoing, Tenant shall comply with any legitimate request made by any legitimate authority relating to Tenant or Tenant's responsibilities under this Agreement; Landlord shall comply with any legitimate request made by any legitimate authority relating to Landlord or Landlord's responsibilities under this Agreement.

2.14 Not to do or permit to be done anything whereby the policy or policies of insurance on the demised premises against damage by fire or any other risks may become void or voidable or whereby the premium thereon may be increased and to repay to the Landlord all sums paid by the Landlord by way of increased premiums and all expenses incurred by the Landlord in or about the renewal of any such policy or policies rendered necessary by a breach or non-observance of this covenant.

2.15 To yield up the demised premises at the termination of the tenancy in such good and substantial repair as shall be in accordance with the conditions and stipulations herein contained and with all locks keys and fastenings complete.

2.16 To pay and make good to the Landlord all and every loss and damage whatsoever incurred or sustained by the Landlord (including all legal and surveyor's costs in respect of the service of notices or proceedings) in consequence of every breach or non-observance of the Tenant's obligations herein contained;

2.17 To pay the Stamp fees for this Agreement and a duplicate.

2.18 Not withstanding anything contained therein minor repairs of less than $100/occurrence shall be payable by the Tenant. Any amount exceeding or equal $100/item shall be payable by the Landlord unless the defect or damage was caused by the Tenant in which event the Tenant shall bear the cost of such repair. Minor repairs such as the replacement of electric bulbs, except for those not easily available, during the tenancy shall be borne by the Tenant.

2.19 Air conditioners to be serviced by the Tenant.

3. The Landlord hereby agrees to do the following:

3.1 To pay the mortgage (if any), condominium fees, assessment, property tax and surcharge thereon (if any) and car park fees and related car parking charges in respect of the demised premises.

3.2 To keep the demised premises insured against loss or damage by fire and in the event of such loss or damage (unless resulting from some grossly negligent act of the Tenant in consequence whereof payment of the insurance shall be refused and subject to the provision for termination hereinafter contained) to rebuild and reinstate the damaged property. And if the demised premises shall in consequence of such damage be unfit for occupation or use for the purpose aforesaid the said rents or a just and proportionate part thereof according to the nature and extent of the damage sustained shall abate and be allowed to the Tenant from the time of the destruction or damage until such time as the demised premises shall be rebuilt and reinstated or until the date of expiry of a notice of election by the Landlord under Clause 4.2 hereunder. Provided that in case of any disagreement as to the amount of the abatement or the period for suspension of all or any part of the rent the matter shall be determined by a surveyor approved by the Landlord and the Tenant.

3.3 That the Tenant paying the rent hereby reserved and observing and performing the several terms and stipulations on the Tenant's part herein contained shall peacefully hold and enjoy the demised premises during the tenancy without any interruption by the Landlord or any person rightfully claiming under or in trust for the Landlord; and

3.4 To agree to the conditions as stated in the Letter of Intent dated February 11, 1998 and reproduced below:

The conditions are:

  1. The tenant's employee, Mr SE will get an employment pass and will be able to set up the Singapore branch of the Company.
  2. Half a month rental as a good faith deposit to be paid tomorrow and the other half on confirmation that the Singapore branch has been approved by the Singapore Government. The Landlord agrees to refund the deposit if Mr SE is unable to get an employment pass and the Singapore branch formation is not approved.

As agreed, the Landlord, prior to the commencement of tenancy, will provide the following:

  1. to provide and install grilles/netting to surround the air condition compressor.
  2. to provide lighting of Tenant's choice but at a reasonable budget from the Landlord.
  3. to provide one new family-sized refrigerator.
  4. to install shower-curtain rail for the master bedroom's bathroom.
  5. to provide a new washer and drier (front loading, American size).
  6. to ensure all electrical, plumbing and sanitary installations are in good working order.
  7. to clean the entire apartment before commencement of tenancy.

4. Provided Always and it is expressly agreed as follows:

4.1 If the rent hereby reserved or any part thereof shall be unpaid for fourteen (14) days after becoming payable (whether formally demanded or not) or if any condition or stipulation herein contained on the Tenant's part to be performed or observed shall not be so performed or observed or if the Tenant being a company shall enter into liquidation whether compulsory or voluntary (save for the purpose of amalgamation or reconstruction of a solvent company) or have a receiver appointed of its undertaking or if the Tenant shall become bankrupt or enter into any arrangement or composition for the benefit of his creditors or suffer any distress or execution to be levied on the Tenant's good then and in any of the said cases it shall be lawful for the Landlord at any time thereafter and notwithstanding the waiver of any previous right to reenter upon the demised premises or any part thereof in the name of the whole and thereupon this tenancy shall absolutely terminate but without prejudice to the rights of action of the Landlord in respect of any antecedent breach of this Agreement by the Tenant.

4.2 If through any cause whatsoever the demised premises shall be destroyed or so damaged as to become unfit for occupation or use for the purposes aforesaid without substantial rebuilding the Landlord may at the Landlord's discretion in lieu of rebuilding or reinstating the same elect to treat this tenancy as at end and reenter upon the demised premises on giving to the Tenant not less than one (1) month's notice

4.3 Notwithstanding anything herein contained the Landlord shall not be liable to the Tenant nor shall the Tenant have any claim against the Landlord in respect of any damages to the Tenant's belongings or any injuries to the Tenant, members of his family and his guests whilst in the demised premises or in or around.

4.4 The Tenant shall during the three (3) months prior to the termination of the term hereby created, upon notice to Tenant from Landlord or his agents, and during such hours as may be convenient to the Tenant, admit the Landlord or his agents together with such interested parties to view the demised premises for the purpose of re-letting. Similarly if at any time during the said term, the Landlord is desirous of selling the demised premises, any such sale shall be subject to this Agreement, the Tenant shall, upon receiving advance notice from the Landlord or his agents and during such hours as may be convenient to the Tenant admit the Landlord or his agents and such interested parties to view the demised premises.

4.5 In the event that Mr SE, Regional Manager, SE Asia, who is occupying the demised premises at the commencement of the tenancy is deported from Singapore, refused permission by the Singapore Government to reside in Singapore, or transferred or relocated from Singapore to another country, or is no longer in the employ of the Tenant, the Tenant shall, subject to satisfactory documentary evidence to be furnished to the Landlord, be at liberty to terminate the term hereby created upon giving to the Landlord two (2) months' notice in writing or by payment of two (2) months' rent in lieu of notice, provided twelve (12) calendar months shall have lapsed from the date of commencement of this Agreement and upon the expiry of any such notice, this Agreement shall cease and determine but without prejudice to the rights of the Landlord in respect of any antecedent breach by the Tenant of any of the terms and conditions hereof.4.6 Any notice required to be served under or in any way in connection with this Agreement shall be sufficiently served on the Tenant if left addressed to the Tenant upon the demised premises or if forwarded to the Tenant by registered post at his last known address in Singapore and shall be sufficiently served on the Landlord if delivered to the Landlord personally or sent to the Landlord at the above mentioned address by registered post. A notice sent by registered post shall be deemed to be given at the time when in due course of post it


Upon execution of this Agreement, Landlord will supply the Tenant the following furniture and fittings if not already present in the apartment.

  • Air conditioning of whole apartment.
  • Ceiling lights in all rooms & mirrors in bathrooms.

Master Bedroom.
New day and night curtains.
New wardrobe cupboard.
Shower rod in bathroom
Divan king-sized bed and mattress.

Bedroom 2 and 3.
New day and night curtains.
New wardrobe cupboard.
Divan queen-sized bed and mattress..
Sofa bed.

Blinds or curtains
New family-sized Refrigerator.
Cooker and hob.
Combi-microwave Oven

Dining Room.
New day and night curtains.
Dining table with 6 chairs.

Living Room
New day and night curtains
3-seater sofa set and 2 armchairs.
One coffee table.
25-inch TV.

Utility Room
New Washing Machine, American size, front loading.
New Dryer, American size, front loading.

Frame or netting to enclose the air conditioner compressor or a metal frame support to elevate the compressor, subject to further discussions with the Tenant.. (Tenant has a small dog that might be blown off by the hot air from the compressor or become a hot dog!).

Additional items, if not listed above, will be provided by the Landlord as stated in the box below:

The Landlord has agreed to provide

  • a budget of $3,500 for the Tenant to choose the lighting for the apartment at the Landlord's approved lighting shop.
  • a budget of up to $12,000 to the Tenant' to choose items which will include the following items which are estimated to cost as follows:

Family-siezed Refrigerator $2,000

Washer and separate Dryer front loading, American size $2,200 (as at July 10, 2000).  
$1,200 for European sized ones.

Combined-microwave oven $800

Vacuum cleaner and ironing board $500

25-inch TV $1,000

Divan king-sized and queen-sized bed and mattresses and sofa bed $3,400

High back, half leather sofa set for 3 seater and 2 armchairs $2,000

Dining table and six chairs plus large coffee table $2,200. Can get one set with glass top for around $1,500.


Signed by the Landlord:




In the presence of : __________________


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