Guide to Renting Out Your HDB Flat

Singapore Citizens - The entire flat can be rented out after the Minimum Occupation Period (MOP) is fulfilled. Before that, only bedrooms can be rented out.

Singapore PR Flat Owners - Only bedrooms can be rented out.

*When only bedrooms are allowed to be rented out and not the whole flat, it implies that the flat owner must remain residency in the flat i.e. At least one of the bedrooms is occupied by the owner.

Maximum number of tenants allowed if you are eligible to rent out your entire unit:

Valid from 2024 to 2026

Maximum number of occupants allowed if you are eligible to rent out only bedroom(s):

As of 2024 to 2026

*1-room & 2-room flats are not eligible for this category.

Step 2: Check the Market Rental Rates in Your Area

Knowing the current market demand and the past market rental rates in your area will help you make an informed decision on setting the rental price.

The HDB portal provides public access to the past one year of transacted rental information.

Step 3: Advertise Your Flat/Room

This is one of the things that you may have limited resources for if you are handling the process by yourself. That is because, posting on popular platforms like Property Guru requires a subscription, which ranges in the 4 digits at least. Property agents pay for this as part of their profession, on top of that, they have a huge network of clientele and colleagues to publicize to.

Do also declutter your property to take nice photos and videos for the marketing materials.

Step 4: Schedule Viewings

Schedule viewing appointments of your property when potential tenants or their agents respond to your advertisement.

Step 5: Negotiation

This includes not only the rental price but also the furniture, appliances and repainting of the walls etc.

For instance, a potential tenant may request the landlord to be responsible for the replacement of a high-usage appliance if it breaks down within 6 months of moving in eg. the washing machine which has been used by previous occupants.

Step 6: Receive Letter of Intent (LOI) & Good-Faith Deposit

If the potential tenant wishes to proceed after the terms are mutually agreed upon, he/she will give you a Letter of Intent (LOI) with a good-faith deposit to secure the deal.

The good faith deposit is usually equivalent to one month’s rent, and it will become the security deposit later on.

<Important> Do not sign and return the LOI until Step 7 is completed.

Step 7: Check Tenant’s Eligibility, Verify Documents

It is the landlord’s responsibility to verify the tenant’s identity and permit for long-term stay in Singapore.

ICA portal - To verify NRIC, Student Pass or Long Term Social Visit Pass
Ministry of Manpower portal - To verify work permit, S Pass or Employment Pass

Non-Citizen Quota for renting Out of Flat

This quota policy has been put in place to maintain a good ethnic mix in HDB estates.

It is not applicable if you are renting only the bedroom/s or, if your tenant is a Singaporean or Malaysian.

HDB portal - To check the Non-Citizen Quota for your block

Step 8 : Apply for HDB’s Approval

This is done via My HDBPage for renting out the entire flat or bedroom/s.

Min. rental period for each tenant :

__ 6 consecutive months

Max. rental period per approval for Singaporean and Malaysian tenant : 3 years

Max. rental period per approval for foreigner tenant (non-Malaysian) : 2 years

Step 9 : Issue the Tenancy Agreement (TA)

This is a legal contract to be signed by both the landlord and tenant. It serves to safeguard all parties, especially in the event of tenancy dispute. It consists of 3 parts: A) Landlord’s details B) Tenant’s details C) Lease details

Security Deposit. This will also be collected when the TA is endorsed. It is usually a month’s rent for every year of lease i.e. Security deposit for 2 years of lease will be two months worth of rent. The good faith deposit received with the LOI will be converted to a part of this security deposit.

Stamp Duty. This is a tax and is borne by the tenant, unless mutually agreed otherwise. At this moment of writing, it is at 0.4% of the total rent for the entire lease period. Simply log into the IRAS portal to pay for stamp duty.

Step 10 : Prepare Inventory List, Walk-Through & Passing of Keys

Prepare an inventory list with photos and walk through your flat with the tenant. Have two copies of the inventory list endorsed by both you and the tenant and attach it to each copy of the Tenancy Agreement. This helps to avoid future disputes over ownership of items and the condition of fittings and fixtures etc.

Finally, the handover of the keys to your new tenant :)

What’s After?

Typically, there is a 30-day Problem-Free Period Clause in the TA, which states that the new tenant is not responsible for any damages during this period.
Be mindful that the HDB regulations are adhered to throughout the lease tenure eg. No other occupants, other than your tenants, have moved in.
Pay annual income tax for the rental income received.

Should I Engage a Real Estate Agent?

Engaging a property agent can save you time and handle various tasks, including addressing issues during the lease period.

A reliable agent should research the current rental market, create effective marketing campaigns, arrange viewing appointments, negotiate terms, screen tenants, handle paperwork promptly, and provide post-lease support.

They ensure rent is paid on time, compliance with regulations, and assist with lease renewals.

Agent Fees

In Singapore, the common market rate is one month's rent for a 2-year lease and half a month's rent for leases of 1 year or less, + Goods & Services Tax (GST)

Guide to renting out a private property.

Guide to renting out an EC.

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