Room Rental Woes in Singapore - How to protect yourself.

Here in Singapore, room rental or even whole unit rental are not uncommon. It is simply another avenue for home owners to make additional income apart from their full time job.

But many of a time, if you ever tried researching online, you will find that many landlord experience difficult and stubborn tenants. And some of them are even trying to play around with the agreement and bringing in additional pax and only paying for what was agreed on initially. It is a common problem faced by landlords all over the world.

There are many rules and regulations that are set and they varies from country to country and in some places, even state to state. In Singapore however, the rules and regulations/ Terms & Conditions, is usually made and agreed between the two parties - Landlord and Tenants. Therefore, it wouldn't be a surprise to discover that there aren't many information and solutions available when it comes to rental disputes in Singapore.

Whenever dispute arises, these disputes must first be mitigated between the two parties. Try talking it out. Usually the tenant will comply. Stay firm but not rude. As much as we would like to resolve the matter, we do not want to offend the tenant which may cause you more problems.

When talking fails, the next step is to bring it up to the Small Claims Tribunal Court. This may be a time consuming process and cost you money. And to avoid this, the best solution is prevention.

3 Things to know before renting out your property.



TERMS & CONDITIONS

Always.... ALWAYS... write up a black and white Terms & Conditions for the tenant to agree and sign on upon successful agreement on the rental deal. The good thing about room rental in Singapore is that, The Landlord usually has the upper hand (of course! that's your property we're talking about).

Therefore, always indicate clearly in your rental conditions for things that are allowed and disallowed.

For example, things like:

• no guest/friends/relative visits
• tenants must take full responsibility of any damages done to furnishings and structure provided to them during the rental period. 
• tenants must maintain good level of hygiene to premises
• premise rented out must be free from pests throughout the rental period.

the list goes on depending on your requirements that the tenant has to comply. So, sit down and properly think it through. Also, ensure that there are 2 copies - one for you and one for your tenant. In case things do go wrong, BOOM! You are protected by the agreement.

And for those tenants that are frowning to this, no one is forcing you to take up on the agreement. Therefore, if it is not to your liking, walk away. There are many other places around.

Below are 3 things a Landlord in Singapore should know before renting out your property.

LATE PAYMENT OF RENTAL FEES

Another common problem everywhere in any businesses. This is a point to indicate in your Terms & Conditions. A payment date must be indicated and the tenant must pay the rental fee in FULL by the due date. Any late payments must be made within 7 days after the agreed payment date.

One important point to take note is that, as the Landlord, you have the right to take actions against the tenant if payment is not made within 7 days of the due date. And also, you have the right to reject any partial payments offered by the tenant. Any partial payment received by the Landlord will be considered as payment successfully RECEIVED - making you lose the leverage of any claims of late payment by your tenant.

Do indicate this requirement fully and clearly in your Terms and Conditions.

SHOULD I ENGAGE AN AGENT WHEN PUTTING OUT MY UNIT/ROOM FOR RENT?

It is really up to you. Agents are able to screen potential tenants that suites your requirements. They will prepare the Terms & Conditions, but please read it through and ensure that you are protected by it.

A good agent will help you in times of disputes with your tenant. Notice I mentioned good? This is because in Singapore, Agents are not obliged to handle any disputes between the Landlord and Tenant. Their job is to only source out and find tenants for you. But a good agent will also know that in business, a loyal returning customer is always a big asset.

They can also act as the initial third party for you to communicate any unhappiness with. They will then be able to help you by sending gentle reminders to the tenants.

The downside to engaging an Agent? It is the agent fee that is usually 50% of a month rental fee which has to be paid upfront by the Landlord. I would count this a minor fee if you have a good agent. Believe me, they will save you a lot of time and stress.

If you rather not engage any agent, keep in mind that you have to do everything yourself. That is when a solid Terms & Conditions comes into play.

While the Terms & Conditions is always there to protect you, as a Landlord, exercising some flexibility is always encouraged as nobody wants a negative environment especially if you are only renting out a room. Mutual understanding and respect between both Landlord and Tenant is always favored by everyone.

Lastly, enjoy the extra income and also enjoy meeting new people!