A Guide To Renting Out Private Property - Singapore 

Risks and considerations

If you don’t want to end up on Channel News Asia, here is what you need to know before renting out your property:

Short-term accommodation 

When it comes to private residential homes, the properties must be rented out for at least three (consecutive) months. This means properties cannot be rented out on a daily or weekly basis. There have been many cases, such as the one above, where agents have let tenants stay in the accommodation for short-terms only resulting in heavy fines. 

The URA (urban redevelopment authority) believes that frequent tenant turnover “changes the residential character” of the home, as well as causing “disamenities” to neighbouring residents. 

Occupancy Cap 

Another aspect that landlords should watch out for is the occupancy cap. In Singapore, this comes with a stringent set of regulations. If there are more than six persons living in the property it is deemed illegal. The URA clearly states that the occupancy of any more than six unrelated persons is against the law. In this case, unrelated persons refer to anyone who is not part of the same family unit (domestic helpers are treated as to the family unit). This rule also applies to any tenant who sublet their rooms to other individuals. As the landlord, you need to make sure the tenants are aware of this. That includes not taking deals that are too good to be true (read, a company wanting to house their workers and paying $5,000/month is definitely hosting 12 workers in your home, well above the occupancy cap… money does not grow on trees, even in times of crypto! Haha)

Incorrect reconfiguration and partitioning

Be aware that there shouldn't be any reconfiguration that would go against the nature of the property. You are free to plan partitionings of rooms however just make sure that it doesn't compromise the essential features of the property. Such as the living or dining room area as well as the kitchen. 

Illegal Immoral activities 

Using the property for immoral illegal purposes is also against the URA regulations. Tenants occupying the unit should not be practising any unlawful activities or creating a nuisance to any other occupiers of the properties nearby. 

How to rent for sharing

If you think your property is suitable for sharing, and would bring you a higher return than renting it to a family, here are a few tips on how to find the right partner for you to work with:

Using a Coliving Company

Maximising Occupancy vs Monthly Rent Price

Landlords should be able to maximise the amount of rent received over the life of the property. Agents earn a commission per transaction based on the rent per month. 

This could create a conflict of interest; an agent may keep a place empty for months to chase a higher rent-based commission. Coliving companies earn revenue based on actual rent earned through occupancy, so their interests are more aligned with the landlords.   

Ongoing support

A property agent will help with the selling or renting of property and take care of the paperwork related to the transaction. However, they don’t do property management. This is where good coliving companies will support you end to end and give you peace of mind. For example, at Casa Mia Coliving we offer an exceptional aftercare solution to landlords. We have the people and technology to take the hassle out of having to decorate and furnish. We also manage the maintenance issues, and upkeep of the home. 

Risks and separation of responsibilities

Agents will act on your behalf. Meaning, that their actions will affect you too. On the other hand, if a coliving operator is handling your property all of their actions are accounted for by themselves (meaning you are off the hook and not responsible if someone decides to do something illegal).

Additionally, any established coliving operator with good operating processes will have screening and onboarding practices to make sure that they know who the tenants are and what they do and minimise the risk for the landlord of having someone running illegal activities out of their home.

Agent Fees

One final note, when dealing with a property agent, remember that they can only represent either the landlord or the tenant, not both. In a sub-letting situation, make it clear that they work for you and cannot charge fees to the tenants…. Thus, they cannot collect commissions from both parties.

Company selection

• When you go through a coliving operator it is a real company, not just one person who is renting out a couple of properties here and there. This in itself should give a sense of security. If you do decide to deal with just one person, watch out for those who overpay or offer a lot of cash upfront. If it's too good to be true, there is a reason.
• Make sure they are familiar with the location of your property. A quick check of their portfolio will help you assess this. 
• Are your goals for your property aligned with their ideas? You can see their existing homes to see whether their designs are to your liking. 

FAQ: Renting Out Property in Singapore – Key Risks and Best Practices

1. What are the rules regarding short-term rentals in Singapore?

Private residential properties in Singapore must be rented for a minimum of three consecutive months. Short-term rentals (daily or weekly) are prohibited by the Urban Redevelopment Authority (URA). Violating these rules can result in hefty fines, as seen in cases where agents allowed short-term stays against regulations.

2. Why is there an occupancy cap on rental properties in Singapore?

The URA limits the number of unrelated occupants in a property to six persons. This rule prevents overcrowding and maintains the residential character of neighborhoods. Violating this cap, such as subletting rooms to more tenants than allowed, is illegal and could result in penalties.

3. Can I partition my property for more tenants?

Any modifications to a property must retain essential living spaces like kitchens and living rooms. While partitioning is allowed, altering the property’s core features to fit more tenants could breach URA guidelines, risking legal action.

4. What are the risks of tenants using the property illegally?

Landlords are liable if tenants engage in illegal activities or cause disturbances. It’s crucial to perform tenant screening or work with reputable operators like Casa Mia Coliving, which have strict onboarding processes to reduce such risks.

5. How can coliving help maximize rental income?

Unlike agents who may leave properties vacant to secure higher rents, coliving operators focus on maintaining occupancy, aligning their interests with the landlord’s goals. This helps achieve better long-term rental returns through consistent occupancy.

6. What ongoing support do coliving companies provide?

Coliving operators, such as Casa Mia Coliving, offer end-to-end management, including furnishing, maintenance, and tenant management. This reduces the hassle for landlords and ensures properties are well-maintained and generating income consistently.

7. What are the risks of working with property agents?

Agents act on behalf of landlords, but their actions can impact landlords directly. In contrast, coliving operators take full responsibility for tenant management and compliance, insulating landlords from potential legal issues.

8. Can agents represent both landlords and tenants?

No, property agents can only represent either the landlord or the tenant, not both, to avoid conflicts of interest. In subletting situations, landlords must ensure that agents don’t collect fees from both parties.

9. How do I select the right coliving operator for my property?

When choosing a coliving operator, verify their portfolio and familiarity with the property’s location. Ensure their vision aligns with your goals, and watch for red flags like overly generous offers. Reliable operators like Casa Mia Coliving bring professionalism and transparency to property management.

10. How can I partner with Casa Mia Coliving?

Landlords interested in maximizing their rental income through coliving can contact Casa Mia Coliving for partnership inquiries. Their team offers tailored solutions and professional management to ensure smooth operations and consistent returns.

If you are a landlord and are looking to partner with us, please feel free to reach out here. Should you have any questions we would be happy to assist, you can find out more information about Casa Mia Coliving here.