Renting out your spare room or the entire house is a great way to make passive income. What does it mean to be a landlord? Is it just about knowing all the terms and conditions in the Tenancy Agreement? Read on to find out more about subletting in Singapore!

Know who is eligible to rent your property

You can rent to Singapore Citizens and Singapore Permanent Residents, subject to the other conditions above. For foreigners, they must possess at least one of the following:

1) Long term social visit pass
2) Student pass
3) Work permit
4) S-pass or other employment pass

Landlords have to verify the records of the tenants, so do ensure you sight the original passports and ICA issued documentation and retain a copy for your records.

Rules regarding your eligibility to sublet your private property

Owners can rent out their units once it receives the Temporary Occupation Permit (TOP). The occupancy cap is 6 unrelated tenants regardless of the size of the property.

Rules regarding your eligibility to sublet your HDB flat

There are more rules regulating HDB rentals. Firstly, you have to be a Singapore Citizen who has fulfilled the Minimum Occupancy Period (MOP) before you can sublet the entire flat. Currently the MOP is 5 years regardless of whether you purchased a BTO or a resale flat. There is also the non-citizen quota and industry sector quota for tenants, hence do check the prevailing quota for the current month via the HDB website.

The maximum number of tenants for a 2-room flat is four and for 3-room or larger flats, it is six tenants. All flat owners must also obtain HDB’s prior approval before renting out their flats or bedrooms. All sublets need to fall between the minimum lease period of six months with maximum lease period of 24 months (if your tenant is a Malaysian, the maximum lease period can be increased to 36 months).

Last but not least, tenants are not allowed to be tenants or owners of other HDB flats unless they are divorced or legally separated (in this case only one party can rent a HDB flat from another flat owner), or owners who are eligible to sublet their whole flat.

Ensure that your fixtures are in good condition

Most experienced landlords know that ensuring that the lightings, faucets, showers, built-in appliances, and built-in carpentry are in good condition. This will help to speed up the process of getting a tenant. Tenants will want to rent units that are problem-free to reduce any potential issues between both parties. 

Engage an experienced real estate agent

You can choose to DIY or engage a real estate agent to streamline the processes and paperwork. The agent will advertise the unit and conduct the viewings saving you precious time and reduce the vacant period. The tenancy agreement will be drafted by the agent to protect your interests.

Do speak to a few real estate agents and find out how they can best meet your needs. Good luck!