Tenancy agreement

Rates and thresholds change. The current figures are kept in one place: the Singapore property rules reference.

A tenancy agreement covers the essentials, the monthly rent and payment date, the lease term (commonly one or two years with an option to renew), the security deposit (commonly around one to two months' rent depending on the lease length), who pays for what (utilities, minor repairs, MCST or conservancy charges), and any special conditions such as a diplomatic clause allowing early termination under specific circumstances.

Once both parties agree terms, the tenancy agreement is signed and stamp duty becomes payable to IRAS, calculated on the total rent over the lease term, and due within 14 days of signing for an agreement signed in Singapore. The security deposit and any advance rent are collected at signing, and the agreement typically references an inventory list documenting the property's condition and included furnishings at handover, which matters later when the deposit is returned.

Landlords and tenants commonly rely on a generic downloaded template without adjusting it for the specific unit, missing an inventory list, no clear clause on who pays for what repair, no diplomatic clause when one side expected one, which leads to disputes later that a clearer agreement would have avoided. Stamp duty is sometimes overlooked or paid late, which can attract a penalty from IRAS. Renewal terms are sometimes left vague, causing friction near the end of the lease term over whether a renewal option was actually agreed or just discussed informally.

Before signing, check that every material term discussed verbally, rent, deposit, lease term, who pays what, any special clause, is actually written into the agreement rather than assumed, confirm stamp duty is paid within the required window, attach an inventory list that both parties sign off on, and spell out any renewal or early termination conditions rather than leaving them to be worked out later.

As an illustrative example, a landlord and tenant who verbally agree that the landlord will handle aircon servicing, but never write it into the tenancy agreement, can end up disputing the point months later when a unit needs repair and both sides remember the conversation differently. A clear tenancy agreement removes that ambiguity by stating exactly who is responsible for which category of repair and maintenance from the outset, and it is worth confirming early who will arrange and pay the stamp duty, since in practice this is usually agreed between landlord and tenant even though IRAS holds either party liable if it goes unpaid.

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.