Renting as a housing option in Singapore is a common thing for people who cannot afford to purchase their own homes. Singapore citizens, Singapore Permanent Residents (PR), and foreigners have many renting options available in the country. Renting may not be a big problem to some, but for others, they may encounter difficulty with landlords and their rental contracts. Sometimes tenants can get confused with many terms cited in a rental contract, therefore to send some light and ease out the confusion here are a few important rental terms tenants should be aware of;
1. Good Faith Deposit
Upon signing the Letter of Intent (LOI), the landlord will usually request and demand the good faith deposit. This deposit helps in assuring that the landlord will not look for other tenants, between the time you sign the LOI and the signing of the Tenancy Agreement (TA). The standard amount is one month’s rent. The deposit can be refundable or non-refundable depending on the circumstances when rent is not pushed through.
2. Letter of Intent (LOI)
This document specifies the interest of the tenant to rent the unit. The tenant’s agent usually prepares this document. The LOI is submitted together with the good faith deposit and serves as the landlord’s promise to rent out the unit to the specific tenant signing the LOI.
3. Tenancy agreement (TA)
This document sets out the terms and conditions of the lease and is a legally binding document to the landlord and tenant. It is the landlord or the landlord’s agent task to prepare the document. The TA should also contain the agreed-upon terms and conditions that were submitted by the tenant in the LOI. It is the tenant’s duty to check the TA to avoid landlords from adding new terms and conditions that the tenant may not agree on.
4. Security Deposit
After signing of the TA, this deposit is given to the landlord. The deposit is withheld to pay for damages, fees and any unpaid rent by the tenants. It can also be retained if ever tenants break the terms of their lease. The amount of the deposit is usually one month’s rent.
5. Tenant’s Agent
This person is charged with representing the tenant’s side when it comes to renting. The agent helps in making sure that the LOI and TA are fair for the tenant and also negotiate prices for the tenant. The agent also helps out in negotiating terms for the tenant in cases of unavailability.
6. Landlord’s Agent
This person represents the landlord’s interests. They decide if tenants are okay to have a unit rent out and bargain for higher prices. They handle the landlord’s main business when it comes to renting and all aspects of the rental unit.
These are among the many terms one should be familiar with. It is important for one to be aware of the many rental terms in contracts to avoid problems with the landlords and rental agreements in the future.