Once you have decided on take up a property, to do the rental documentation, you would need to prepare the following:

• Photocopied passport / IC

• Photocopied employment pass  (if required)

• One month's rental for the goodfaith deposit

We will then prepare the necessary documents for you such as the Letter of Intent ( LOI )and Tenancy Agreement.

A)  Letter of Intent ( LOI )

The Letter of Intent is a document stating your intention to lease the premises and your proposed requirements to the landlord. It normally include the following clauses:

1. Goodfaith Deposit

This is the booking deposit, usually equal to one month's rent to confirm the booking of the proposed Tenancy. After the landlord signed the Letter of Intent and accept this deposit, he cannot rent the property to other party. This deposit will become part of the security deposit or advance rental after the Tenancy Agreement is signed.

2. Security Deposit

The amount of the security deposit is usually stated in the Letter or Intent. The market practice in Singapore is usually one month's rent for every year of lease. It will only be payable upon signing of the Tenancy Agreement. When the term of the lease ends, the deposit will be refunded without interest. However, the landlord reserves the right to deduct from the deposit all reasonable costs and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.

3. Term of Lease

The standard average lease period is usually 2 year, with an option to renew the lease for another 1 year. For the lease renewal option, the landlord would normally require that you give 2 or 3 months' advance notice of your intention to renew. Most landlords will not accept leases that are less than 1 year.

4. Diplomatic Clause

This clause is to protect the Tenant in the event that he is no longer employed and or need to be transferred to other countries midway through the Tenancy period. With the clause, he can terminate the lease after 12 months by giving 2 months notice and the security deposit will be refunded. The market practice is that most landlords will only include the diplomatic clause if the lease is more than a year.

5. Your other Requirements

Ensure that all your requests and requirements are stated in the Letter of Intent. Once the landlord had agreed and signed on the Letter of Intent, he is bound by the agreement to accede to your requests.

Partially furnished apartments or house usually only comes with basic furnishing such as curtains and lightings. Although the house may be partially furnished at the time of viewing, you can always request the landlord to fully furnish it or request him to get certain items that you need.

Fully Furnished tenancy means the apartment or house you are renting include basic furnishing mentioned above plus all the main furniture and the essential electric appliances such as refrigerator, washer and dryer.

The level of furnishing required are always negotiable on a case to case basis and it eventually determine the final rental amount.

B)  Tenancy Agreement

After the Letter of Intent is duly signed, the landlord or the agent will proceed to prepare the Tenancy Agreement.

The prospective tenant will need to prepare the rest of the security deposit and advance rental upon signing of the Tenancy Agreement minus the goodfaith deposit paid earlier.

For 1 year lease - 1 month's security deposit and 1 month's advance rental.

For 2 years lease - 2 month's security deposit and 1 month's advance rental.

Important Clauses to take note when signing the Tenancy Agreement are:

1. Diplomatic and Reimbursement Clause

As mentioned above, this clause is to protect the Tenant in the event that he is no longer employed and or need to be transferred to other countries midway through the Tenancy period. With the clause, he can terminate the lease after leasing for 12 months by giving 2 months notice and the security deposit will be refunded. The market practice is that most landlords will only include the diplomatic clause if the lease is more than a year.

In a typical Tenancy Agreement, there is usually the reimbursement clause together with the diplomatic clause. This clause states that if the tenant exercise the diplomatic clause, he will have to reimburse part of the commission the landlord had paid to his agent. Since landlord grants the diplomatic clause, he would normally ask for the reimbursement clause to be included in the tenancy agreement.

2. Public Utilities, Telephone and Cable Television

The installation charges and the monthly bills for the following services are under the Tenant's responsibility:

• SP Services - the water and electricity supply

• City gas - piped gas in selected areas ( if applicable )

• Singapore Telecom- residential telephone line

• Starhub Cable Vision (SCV) - cable TV and broadband internet access

3. Maintenance and Repairs

The Tenant is responsible for maintaining the premise and carry out minor repairs at his own costs. In a standard Tenancy Agreement, the tenant will only be responsible if the amount of the repair does not exceed S$100 or up to S$300 depending on the type of apartment or houses.

Major repairs fall under the Landlord's responsibility provided that the damage or malfunction of appliances is not caused 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 if applicable.

4. Term of Lease and Option to renewal

The standard lease period is 2 year with an option to renew the lease for 1 year subject to an adjusted rental to be agreed upon.

5. Stamp Duty

In Singapore, Tenancy Agreement will need to be stamped by the Inland Revenue Authority of Singapore. Only after the Tenancy is stamped then it can be considered 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 usually borne by the tenant.

Computation of the stamp duty fee:

We will assist the landlord will prepare an Inventory List on or before the day of handing over.

Check the items listed in the inventory. Make sure all electrical appliances, air-con, lightings, water heater etc are in good working condition.

If there is anything that is unsatisfactory, note it down on the inventory. The landlord will then rectify it within a reasonable period to the Tenant's satisfaction .

Depending on the duration of the lease, the typical commission payable to the Property agent is :

Half a month's rent for one-year lease and

One month's rent for two-year lease.

Do send us an email or call us at +65 62727 800 if you need any assistance or clarification on the above.

You may also contact us by filling up the simple form here.