Q: As we need to rent until we get our flat, how can we get the best deal out of our landlord, given that rentals may not be coming down?
As you try to nail that desired rental unit, be on your guard against scams. There have been cases where scammers impersonated genuine property agents online. A recent one involved dozens of properties listed for attractive rents below market rates. The scammer had a photo of a valid agent’s pass, the agent’s picture and the estate agent’s licence and registration numbers. The red flag here was a fake e-mail address.
Sourcing homes
Mr Eugene Lim, key executive officer of property agency ERA Realty Network, warns against searching for properties via online platforms that are an open marketplace, such as Carousell, Facebook or Instagram. These platforms do not verify the identity of the advertiser.
“Many unsuspecting tenants have lost deposits to scammers who pose as real estate agents,” he says.
Instead, use legitimate real estate platforms, including PropertyGuru, 99.co and SRX.
Huttons Asia leasing specialist Jerry Qi suggests planning ahead. “From the time you view and offer, the unit is usually available only two months later,” he says.
“Start looking at least two months prior rather than doing this last minute. This is one of the most common mistakes that usually result in higher rents because the urgency to find a place will reduce your bargaining position.”
When viewing
Insist on a physical viewing where you meet the agent and view the property. ERA’s Mr Lim says you cannot get a feel of the environment simply by viewing photos, adding: “If the ‘agent’ asks you to place a deposit before viewing, you are likely dealing with a scammer who is impersonating an agent.”
One way of verifying an agent’s identity is to use the Council for Estate Agencies (CEA) portal. Key in the agent’s mobile number in the public register at https://str.sg/i4GE
Before signing the tenancy agreement, tenants can use CEA checklists. These are available online at https://str.sg/i4Ga
What to look out for if it’s an HDB flat
Ms Sharlene Lim, founder and key executive officer of Storeys, reminds those who are on the lookout for an HDB flat to confirm that the owner has met the minimum occupation period or that prior approval from the Housing Board has been obtained. This is unlike private properties where approval is not required.
The minimum tenancy period is six months for an HDB flat and three months for private property.
Also note that if the tenant is a non-Malaysian non-citizen (Singapore permanent resident or foreigner), the landlord will be able to rent out the HDB unit only if the non-citizen quota within the block or neighbourhood has not been hit.
You can get this information from the owner, who can retrieve it via My HDBPage using Singpass.
Know your facts
Hutton’s Mr Qi says a specialised leasing agent can better represent your interests and help put in a good word for you with the landlord. Have an understanding of the current market and know the going rates.
ERA’s Mr Lim adds that agents can show you recent rental transactions, which ERA agents have on their app.
Letter of intent
The next step is the letter of intent (LOI), which is essentially the tenant’s offer to rent.
Make sure all your requests are contained in this letter, such as a fresh coat of paint or new white goods, says Mr Lim. A good-faith deposit typically equivalent to one month’s rent is presented together with the LOI. The landlord evaluates the offer and then accepts or rejects it.
Storeys’ Ms Lim suggests that if the white goods are in bad condition, negotiate for a lower rental for the flat to come unfurnished or work with the landlord on a budget to spend on new appliances.
Tenancy agreement
Once the landlord has accepted your offer, then comes the tenancy agreement.
Solid Rock Properties’ director Nicholas Nah urges tenants to go through the agreement thoroughly. The agreement should include both parties’ contact details, details of what money needs to be paid, when and how to pay, the duration of the tenancy, details of termination and renewal clauses, a repair clause, and who is responsible for the maintenance costs, taxes and other expenses.
Pay particular attention to the clause about security deposit deductions to avoid finding yourself in a spot over normal wear-and-tear costs.
Mr Nah says there have been “cases of landlords refusing to return security deposits or making massive deductions on spurious grounds such as re-tiling an entire floor because of a single cracked tile or chipped corner or polishing the entire parquet flooring due to some scratches”.
One way to avoid all this grief is to take as many photos of the home and all the defects before moving in. Take close-up photos of existing wear and tear to areas in the unit. Make sure these pictures are sent to the landlord and that they are acknowledged before you move in.
Another tip is to follow up with a defects and damage report within the first 30 days of moving in.
“There is no independent body that can settle deposit disputes, so it’s important to ensure you are protected, however nice your landlord may seem,” advises Mr Nah.
Ensure that the contract you sign with the landlord has a cut-off amount on how much you have to bear for repairs and replacement in the “minor repair” clause. It now ranges from $150 to $300.
You can also request to exclude from the “minor repair” clause certain appliances or furniture that may be, say, more than five years old. These conditions have to be negotiated, agreed upon and added to the agreement before signing.
Storeys’ Ms Lim adds that tenants can consider asking for a diplomatic clause in the tenancy agreement. This allows the tenant, as a foreign expatriate, to exit from the agreement, if repatriation is required, without having to pay for the remaining period when the unit is unoccupied.
Signing on the dotted line
Get your property agent to conduct an ownership search to make sure that the unit is in the owner’s name, says Ms Lim. This ensures you are paying the deposit to the rightful owner.
As the tenancy ends, avoid paying extra for repairs
Repair costs are usually deducted from the rental deposit to reinstate the property to its original state when the lease ends.
Ms Lim recommends a pre-inspection session about a fortnight before the lease ends. This allows the landlord to identify and make an inventory of any repair work that should be carried out and establish the amount that should be deducted from the deposit at the handover.
Landlords have a role to play too
Solid Rock Properties’ Mr Nah says renting out a property is akin to running a small business. Landlords should take care of tenants as a business would look after its customers.
Some landlords even give a hamper to tenants on festive occasions as a sign of appreciation, Ms Lim says.
Mr Nah encourages landlords to address repair requests by tenants in a timely manner. Tenants will appreciate the responsiveness and, with a good relationship, there is every chance of a lease renewal or even a rental increase for the landlord. Crucially, if tenants take good care of the property, this will minimise the need for repairs after they move out.
Bottom line
Even if rentals ease, they may not come down by much. Do your homework and all your checks. Make the effort to scrutinise the tenancy agreement with a fine-tooth comb. Ironing out the details first will translate to money saved down the road.
“Source:[Tips on signing that tenancy agreement] © Singapore Press Holdings Limited. Permission required for reproduction”
