What are the duties of tenant in the contract of lease?
Reading Time: 7 minutes Show
The Story In 60 Seconds
How is a tenancy defined?According to the definitions set out in the Rent Control Act, a “tenancy” is a legal agreement which temporarily transfers the lease for a piece of land or property from the landlord to the tenant. In exchange for a certain amount of money over a designated period of time, the tenant would have exclusive possession of the land or property. However, this does not include the letting out of furnished rooms. Generally, the duties of the landlord and tenant would be listed in the terms of the tenancy agreement, and if either side fails to uphold those terms, then it could potentially lead to the termination of the tenancy. Types of Tenancy in SingaporeThere are four main types of tenancies in Singapore:
Under Singapore’s legal system, residential tenancy agreements are only allowed to take the form of either leases or licenses.
Under Singapore’s legal system, residential tenancy agreements are only allowed to take the form of either leases or licenses.
If you are planning to rent out your property, do note that the government has special regulations regulating both private property and Housing and Development Board (HDB) flats. Generally, private residential properties must be rented out for at least three consecutive months; while HDB flats have a minimum subletting period of 6 months per application each subtenant. As with any contract that you may sign, it is important to be aware of the terms of the tenancy agreement. Moreover, this document will also help to pre-emptively address any areas of future disputes that may arise over the course of the rental arrangement. In general, a residential tenancy agreement will give the tenant the right to “quiet enjoyment and exclusive possession” – i.e. the landlord must allow the tenant to occupy the premises exclusively, without any intrusions or disturbances caused by outsiders. But in turn, the tenant must agree to pay regular rent, and if required, agree not to sub-lease the premises to other people. Aside from basic information detailing the amount of rent, the period of rental, and other relevant details pertaining to the landlord and tenant in the property, the agreement should also include clauses stipulating such topics as:
If you wish to obtain a standard template for a tenancy agreement, you may find a version written by the Consumers Association of Singapore (CASE) here. In addition, you should take note of some clauses that are quite important:
Renting out your residential property as a landlord can be a win-win situation for both you and your potential tenants – especially if demand for rental apartments in Singapore picks up. However, it is equally important to look out for your own interests – whether you are a landlord or a tenant – which is why timely legal advice is necessary if you want to draft a tenancy agreement that fairly protects you. Frequently Asked QuestionsQuestion 1: What is the tenant’s liability if the tenant wishes to terminate a fixed term tenancy before the tenancy expiry date?If the tenancy agreement is for a fixed term of 2 years, and if the tenant prematurely terminates the agreement after 1 1/2 years, the landlord will be entitled to claim rental from the tenant for the unexpired 6 months. It is therefore in the tenant’s interest to find a substitute tenant, with the consent of the landlord. The landlord is also under a duty to mitigate his loss by finding another tenant as soon as possible. Question 2: Is the tenant entitled to use the security deposit to offset rental towards the end of the tenancy?No. The security deposit held by the landlord is to cover the entire period of the tenancy. The tenant should not use this security deposit to offset rental due and payable to the landlord during the notice period given for the termination of the tenancy. Question 3: Should all tenancy agreements be accompanied with an inventory?It is advisable for the Tenant to insist on an Inventory. This will be a record of the items in the rented premises as well as the condition of the said items. At the expiry of the tenancy and during the handover, the tenant should not be in a position where the landlord holds the tenant liable for damage to the items, which in fact had existed at the beginning of the tenancy. Question 4: Can a landlord lock the tenant out of the leased premises if the tenant is late in paying rent?Most tenancies agreements give the tenant a grace period of 7 days to pay rent. Late payment interest may also be included in the tenancy agreement. If rental is not paid after the grace period, the tenant is in breach of the tenancy agreement, which gives the landlord the right to forfeit the lease and bring it to an end. However, if the tenant does not peaceably vacate the premises, the landlord should apply for an order of possession before re-entering the premises by, for example, locking up the premises. Have a question on your residential tenancy agreement?If you would like to seek legal advice on your tenancy agreement, you can do so by booking a Quick Consult one of our practicing lawyers. With Quick Consult, you can check out in minutes and for a transparent, flat fee of S$49, the lawyers will call you back on the phone within 1-2 days to answer your questions and give you legal advice. Alternatively, you can request a quote from Lucy Netto. This article is written by Lucy Netto from Netto & Magin LLC and Tang Chee Seng from Asia Law Network. This article does not constitute legal advice or a legal opinion on any matter discussed and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and practice in this area. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article. You may be interested in these articles:
Lucy NettoLucy Netto graduated from the University of London and was admitted to the Honourable Society of Lincoln’s Inn in 1982 and admitted as an Advocate & Solicitor of the Supreme Court of Singapore in the same year. She was appointed a Commissioner for Oaths in 1996 and as a Notary Public in 2000. She was actively involved in legal practice from 1982 to 1994 when she left to lecture law. Since her return, she has been continuously in active practice. All along, while in practice, she has handled property matters, conveyancing, family matters, Probate and personal injury cases. She also does a great deal of solicitors work such as preparing contracts, wills, Powers of Attorneys, etc. She represents clients in the Court of Appeal, High Court, State Courts, Family Justice Courts on matters involving serious issues of law. She has also represented clients in the Syariah Court and Appeal Board. She continues to be actively involved in solicitors and general litigation work. More Posts What is the most important responsibility of a landlord?Want to be a landlord?. Managing tenants. The relationship you have with a tenant may last for years so it's important to manage that relationship professionally and cordially. ... . Warranty of habitability. ... . Property maintenance. ... . Abiding by housing laws. ... . Evictions.. What are tenants responsibilities?Here is a list of common tenant obligations and responsibilities. Pay rent when due. Be considerate of the landlord's and other tenants' rights. Not destroy, damage or deface the premises, or allow anyone else to do so.
What is stamp duty for tenancy agreement?If the lease period is 4 years or less, computation of stamp duty is 0.4% of total rent for the period of the lease. If the lease period is more than 4 years or any indefinite term, computation of stamp duty is 0.4% of 4 times the AAR for the period of the lease.
Who pays stamp duty landlord or tenant?Generally, tenants are responsible for making the stamp duty payment, unless otherwise agreed by the landlord, and can check the amount payable via IRAS' website. The party paying the stamp duty should also check that the duty is fully paid by requesting the stamp duty certificate.
|