Due to a stronger Singapore dollar against the Malaysian ringgit, many Malaysians would move to Singapore to work there.
To easily commute to their workplaces, some would rent a place and stay in Singapore. Foreigners make up the bulk of renters in Singapore, with expats having taken out leases for 65% of rental properties in the market in year 2020.
The Singapore government imposes strict rules and regulations when it comes to renting to protect its homeowners and cultivate a well-balanced living environment for them. This is especially if you’re leasing a HDB flat or bedroom, which is public housing developed by the government for its citizens to enjoy affordable and quality housing.
For example, there is a non-citizen quota for HDB rentals, which caps the number of foreigners living in HDB flats to 8% at the neighbourhood level and 11% at the block level. However, in view of the close cultural and relation ties between Singapore and Malaysia, this quota does not apply to Malaysians, which gives you more flexibility in choosing a rental property.
Types Of Properties You Can (And Cannot) Rent
As a foreigner, you have the option to rent certain HDB flats or private residential premises including condominiums, landed residential properties, terrace houses, semi-detached houses, bungalows and residential units in shop houses.
As HDB flats are built with the purpose to provide Singaporeans with affordable homes, they are significantly cheaper to rent compared to private residences. There are a few layouts for HDB flats, from 1-room, 2-room, 3-room to 4-room flats. Depending on the location of the HDB flat, the rent will vary accordingly. You can check the average rental price of HDB flats in different locations on HDB’s website.
Typically, the nearer the HDB’s location to central regions, the more expensive rent would be. For example, according to HDB’S rental statistics, the average rent of a 3-room flat in Central is S$3,200 per month in Q4 2024. On the other hand, 3-room HDB flats with the lowest median prices in 2024 were in Woodlands at S$2,500, which is S$700 cheaper.
As mentioned, foreigners can rent certain HDB flats. Foreigners are allowed to rent a bedroom or an entire HDB flat from Singapore citizens who have fulfilled the minimum occupation period (MOP) of five years.
There are certain flats that you won’t be able to rent. For example, Singapore PRs are not allowed to rent out their flats. In addition, Prime and Plus flat owners cannot rent out their flats even after meeting the MOP of 10 years. Prime and Plus flats tend to be built in attractive locations and have a higher market value.
If you have a larger budget, you can also rent private residences. According to Singapore Global Network, the monthly rent of studio apartments range from S$1,700 to S$6,700, depending on the location. On the other hand, the rent of a three-bedder situated outside of the city centre ranges from S$3,800 to S$7,200. It may be more worthwhile to rent a larger place and share the rental costs with multiple housemates.
Requirements To Rent
There are strict regulations in place when it comes to renting HDB flats. Fortunately, given the close cultural ties between Singapore and Malaysia, some leeway is given to Malaysian renters.
Foreigners who want to rent a HDB flat or bedroom will need to fulfil one of the following conditions.
- Is a Singapore Permanent Resident (SPR)
- Holds an Employment Pass (EP), S Pass, Student Pass, Dependent Pass, Long-Term Social Visit Pass or Work Permit
Work permit holders from the construction, marine and process sectors, who want to rent a HDB flat must be Malaysians.
Renters need to make sure that their work passes have a minimum validity of six months at the time of the application by the flat owner.
There are additional restrictions to renting an HDB flat if you already own a property in Singapore. You must not be the owner of an Executive Condominium unit where the five-year MOP has not been met.
Rental Regulations
Now that you know if you’re eligible to rent in Singapore, you may want to know about the rental regulations you need to adhere to including rental duration and number of occupants.
If you’re renting a HDB flat or bedroom, you must rent it for a minimum period of six months. Flat owners can apply to rent out their flat or bedrooms for a maximum period of three years per application if their tenants are all Singaporeans or Malaysians.
For rentals of an entire HDB unit, you will need to adhere to the following limitations on the number of occupants allowed.
- 1-room or 2-room: 4 occupants maximum
- 3-room: 6 occupants maximum
- 4-room or bigger: 8 occupants maximum
Depending on the size of the flat, owners are also allowed to rent out only a certain number of bedrooms.
- 1-room or 2-room: Not allowed
- 3-room: 1 bedroom
- 4-room or bigger: 2 bedrooms
For those renting a HDB flat, the owner will need to register you as an authorised tenant who is allowed to stay in the property. You can check your status as an authorised tenant on e-HDB Services.
If you want to rent a private residence, there are also regulations set in place albeit less strict that owners and tenants must adhere to.
Firstly, tenants need to stay in a property for a minimum duration of three months. If the private property is smaller than 90sqm, the number of people who are not part of the family unit renting the property is limited to six people. Domestic helpers are considered as part of the family unit.
You can check with your Management Corporation Strata Title (MCST) if you’re required to register your tenant.
You can find a place to rent yourself or engage the services of a real estate agent. If you’re seeking the services of an agent, you can check with CEA’s Public Register to verify the identity of your property agent and protect yourself against scammers.
Before committing to any lease, you should make a physical visit to the property you intend to rent and ensure that the person you’re renting from is the rightful owner.
You can request for documentations as proof of ownership. If you’re renting a HDB flat, you can also take a step further and ask for documentations stating that the owner has received eligibility to rent out the flat.
Signing The Tenancy Agreement
As with renting a property in many parts of the world, you will need to prepare and sign a Tenancy Agreement. The Tenancy Agreement is important as it has all the terms and conditions that dictate the rental of the property including payment method and your responsibilities as a tenant.
For HDB rentals, you will need to pay a deposit that is worth a month’s rent for a 1-year tenancy and two months’ rent for a 2-year tenancy.
Within 14 days of signing the agreement, tenants are required to pay stamp duty, which is equivalent to 0.4% of the total rent throughout the lease period. For example, if your rent is S$2,700 per month for one year, your total rent will be S$32,400. This means will need to pay a stamp duty of S$129.60.
Typically, rent is to be paid once a month. The first payment should be paid on the first day of tenancy with following payments to be made on the same day the next month.
You’re advised to pay the rent and deposit by cheque for proof of payment.
Read Also: Renting In Malaysia, Working In Singapore: How Feasible Is It For Singaporeans
