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Renting Out Your Property in Singapore Basic Guide
Singapore has an active rental market given the high number of foreigners and expats who work and study in the country. As such , it is important to take note of some prevailing practices and policies in Singapore as an landlord.
Property investors have a wide selection of professional real estate agents to handle the leasing of their properties. The agent’s commission is paid by the landlord. The standard commission is one month’s rent for every 24-month lease term. The term of lease typically ranges from 12 to 24 months, with an option to renew upon expiry of lease.
A deposit of two months is required for every 24-month lease term. This amount will be refunded to the tenant at the end of the lease term subject to the apartment being returned in good condition.
When a unit is leased out, a Letter of Intent and Tenancy Agreement are signed by the tenant and landlord. The terms and conditions of lease are stated in the agreement.
Income derived from letting out a property in Singapore is subject to income tax. Rental income includes rent of premises, maintenance, furniture and fittings. The deductible expenses are as follows:
- Interest on mortgage loan.
- Property tax.
- Cost of maintaining the property.
- Agent’s commission, advertising and legal expense of getting a tenant.
- Cost of renewing a lease.
For taxation details, please visit www.iras.gov.sg.