What are some of the expenses you need to prepare for when renting a property in Singapore?
Let’s assume you are going to rent a studio apartment for SGD$2,800 for a period of 24 months.
Prior to renting:
- Deposit: 2 month’s rent for 2 years lease – SGD$5,600 (Deposit amount is 1 month’s rent for 1 year lease)
- Agent fees: If you have engaged an agent to represent you, you may need to pay commission of 1 month’s rent for a 2 year lease or 0.5 month’s rent for a 1 year lease: $2,800 + GST 1 month’s rent in advance: $2,800
- Stamp duty: 0.4% of your total rent (0.4% x ($2800 x 24 months)= $268.80)
Moving in:
- Security deposit for moving in: Condos typically collect a $1000 cheque as security deposit when your movers are coming in. They usually do not bank in the cheque.
- Movers: Charging by number of trucks and trips, it’s between $300 – $600 for a typical 1 bedroom shift
- Deposits for utilities: You would need to set aside security deposit for your utilities and internet subscriptions
During stay:
- Minor repair clause: Most tenancy agreements include a minor repair clause of between $150 to $300, so if you run into any defects such as a loose hinge, the first $150-$300 of any such repair is on you. Expect to make at least 3 – 4 such repairs during the course of your stay
- Aircon servicing: I’d advise engaging the servicing company recommended by the landlord, as the landlord will trust them and will not second-guess any recommendations they make, such as the need to perform chemical cleaning. This costs between $30 – $40 per unit per trip. For a studio with 2 A/C units, this will work out to $60-$80 per servicing
- Utilities and internet: This will work out to be around $100 for a studio to $1000+ for a landed housing. A standard fibre connection plan works out to around $60/month.
- After stay: At the end of your stay, you will need to reinstate the property to the same state as when you took over. Some of the common expenses are:
- Professional cleaning: $300 – $500
- Curtains cleaning: $100 – $300
- Minor repairs: $200 – $500
We recommend running through defects with landlord’s representative 1 – 2 weeks before the endof the lease so you have some time to rectify any defects on your own terms.
If you require any assistance to lease out your property or to search of a property, feel free to get in touch via the contact form below.