Moving to Singapore as an expat is an exciting journey filled with new opportunities and experiences. However, navigating the rental market can be challenging, especially for those unfamiliar with local practices. As an expat who has lived in Singapore since 2019, I have experienced my fair share of rental scams and learned valuable lessons along the way. This guide combines my experiences and those of my friends and colleagues to help you avoid common rental pitfalls in Singapore.
Overview of the Rental Market in Singapore
Singapore’s rental market is diverse, catering to different needs and budgets. There are various property types available, including Housing and Development Board (HDB) flats, private condominiums, and landed properties. Each type of housing offers unique features and caters to a range of preferences, from budget-conscious students to luxury-seeking professionals.
However, the rental market here is quite different from many other countries. Singapore is known for being a landlord-centric market, which often means tenants have to be prepared for less favorable terms. Understanding the dynamics of the market and knowing what to look out for can help you secure a good deal and avoid common scams.
Common Rental Scams in Singapore
When I first came to Singapore in 2018 looking for a place to live, I was naive and did not realize that I was unknowingly advertising myself as an easy target by asking the local real estate agents to help me with my search. It's important to know that Singapore typically follows the "buyer beware" ethos, where you must learn as a consumer what is a scam and what is not, in order to protect yourself.
Here are some common rental scams and pitfalls you should be aware of.
Fake Listings
A prevalent issue in Singapore’s rental market is the use of fake or misleading listings by agents. It’s common for agents to create multiple listings for the same property, each with different descriptions, pictures, and pricing. This tactic is designed to capture the attention of potential tenants by creating a sense of abundance and choice. Sometimes, an owner may even work with several agents simultaneously, leading to further confusion.
The ultimate goal of these agents is to get you to submit a Letter of Intent (LOI) along with a deposit to "secure" the property. Once you've made this initial payment, the waiting game begins as the property owner reviews multiple offers. In many cases, this makes it difficult to negotiate favorable terms since the owner has the upper hand, being able to choose the best offer from several prospective tenants.
Advance Fee Fraud (Deposit Fraud)
In some extreme cases, agents may ask for an advance payment before drafting any contracts, including the Letter of Intent (LOI). They may claim that they don’t want to "waste time" without a commitment. This is a red flag and should be avoided at all costs. These agents are often lying to get your money upfront. If you decide to back out of the deal later for any reason, they may refuse to refund your advance payment, leaving you with little recourse.
Inflated Rental Prices
Inflated rental prices are another common issue in the Singapore rental market. Newcomers, especially expats, might not have a clear understanding of what constitutes a fair rental price for different types of properties and locations. Prices can vary significantly depending on factors such as proximity to public transport, location within Singapore, property size, and the age of the home.
To avoid overpaying, it’s a good idea to visit forums and ask for advice from people who have experience renting in Singapore. Local expat groups, social media communities, and online forums can provide valuable insights into what a reasonable price might be for a particular area or property type.
Misrepresentation of Property Conditions
When I was looking for my first rental, I encountered many properties that were misrepresented in listings. Pictures online can be deceiving, often hiding flaws like mold, broken fixtures, or pest infestations. In one instance, a property looked pristine in photos but was in poor condition upon inspection. Some landlords may also try to convince you to accept these conditions or falsely claim they will fix them after you move in. Make sure you get these promises in writing within the Tenancy Agreement, and specifically make sure that there is a 1 month guarantee for them to fix any issues that you find.
However, be aware that even with that clause, landlords may scare you to not fix certain things by saying that they will charge you to "make it good" when you leave, meaning that once they repaint that wall, etc. they will then ask you to pay for any new blemishes when you leave.
Agents Are (Usually) Not On Your Side
One important thing to note about renting in Singapore is the role of real estate agents and their practices. It’s standard for agents to receive a commission, which is usually one month’s rent split between the landlord’s (seller) agent and the tenant’s (buyer) agent. In most cases, this fee is paid by the landlord. This is typically a much smaller reward than if they were to represent the landlord for a sale, in which they would take 1-2% of the property value as a commission. The reason that agents do rentals, is to cozy up to the landlord in order to eventually represent them for property transactions.
Thus, understand that the seller agent will never be on your side because they are representing the best interest of the landlord and trying to keep them happy, and the buyer agent is only rewarded with a half of one month's rent as commission - and the chance to represent you for a property purchase at some future date. However, as the additional buyers stamp duty (ABSD) makes it very expensive for foreigners to buy property in Singapore, they most likely will not think that long term with you.
Thus, some buyer agents might pressure tenants to pay a months commission directly to the agent or push them towards higher-budget properties to increase their their total compensation. If you feel pressured, don’t hesitate to seek a second opinion or walk away - there is always another unit, and agents that pull these tricks most likely will not be helpful during the duration of your tenancy.
During the tenancy, agents act as the middlemen between you and the landlord. It's better to find an honest agent that will work with you best interest, or not have one at all and build a relationship with the landlord directly.
Singapore as a Landlord-Centric Market
Singapore’s rental market favors landlords, and this can be surprising for expats accustomed to different norms. For example, it is common for tenancy agreements to include a clause stating that the tenant is responsible for minor repairs, typically up to $250 for HDB flats and condos, and up to $500 for landed properties. It's common for landlords to push tenants to cover costs even for things that should be their responsibility, like repairing old fixtures or maintaining appliances that will last beyond the tenant's stay.
Always negotiate these terms before signing the lease and understand what you are agreeing to. Understand what minor repairs covers, and ask for examples in writing so you can bring it up later in case repairs do need to happen. And if you do decide to cover repairs that should be the landlord's responsibility, make sure that you know why you are doing so (eg. to negotiate better rental terms for a renewal of the lease).
Tips for Navigating the Rental Market
Watch Out for Old Buildings
Singapore has a mix of new and old properties, and some older buildings may not be well-maintained. During my search for a place, I came across several run-down buildings that looked decent in pictures but were actually in poor condition. Always visit the property and check for signs of wear and tear, like cracks in the walls, water damage, or outdated facilities. If you’re not comfortable with the condition, it’s better to keep looking or request the landlord for renovations as part of your tenancy agreement.
Use Reputable Platforms and Agents
If you’re looking to find a place on your own, platforms like PropertyGuru are reliable and widely used. This platform allows you to see a wide range of listings and filter them according to your budget and preferences.
For those interested in living with others, Facebook groups can be a good resource, but they come with risks - you will stay with strangers that aren't a good fit with your lifestyle, and it is stressful to vet potential roommates on top of looking for a good place to live
If you're looking for a co-living experience where you can choose the people you want to live with, I recommend Our Family Without Borders, where homes are designed to maximize meaningful connections and create lifelong bonds. Find community anywhere in the world by living with people who are looking for like-minded housemates to grow and level up together.
Insist on Viewing the Property
Never agree to rent a property without seeing it in person. A physical inspection allows you to verify that the property matches the description and is in good condition. During the viewing, pay attention to details like plumbing, electrical fittings, and any signs of damage or neglect. This is also a good time to ask questions and ensure that everything is above board.
Get Everything in Writing
Make sure all agreements and promises are documented in the tenancy agreement. This includes who is responsible for repairs, what appliances and furnishings are included, and any other special conditions. Verbal promises are not enforceable, and having everything in writing protects both you and the landlord.
Know Your Rights and Legal Protections
Familiarizing yourself with local laws and tenant rights is essential. In Singapore, tenants have the right to a habitable living environment and fair treatment. Several agencies, such as the Council for Estate Agencies (CEA) and the Consumers Association of Singapore (CASE), offer support and mediation services if disputes arise.
Frequently Asked Questions (FAQs)
- What should I do if I suspect a rental scam?
If you suspect a rental scam, stop all communication and report the incident to the Singapore Police Force and the Council for Estate Agencies (CEA). It’s also a good idea to inform the platform where you found the listing to prevent others from falling victim. - Are there any government resources to help tenants?
Yes, government agencies like the Council for Estate Agencies (CEA) provide guidance on rental transactions and dispute resolution. The Consumers Association of Singapore (CASE) offers mediation services for rental disputes and other consumer issues. - What are common signs of a fake property listing?
Signs of a fake property listing include unrealistic prices, poor-quality photos, vague descriptions, and requests for advance payments without a viewing. Listings with limited contact information or those asking for personal details upfront should also be approached with caution. - Can I negotiate the terms in the tenancy agreement?
Yes, tenants can negotiate the terms of the tenancy agreement before signing. Common negotiable items include the rental price, lease duration, and maintenance responsibilities. It is important to ensure that all agreed-upon terms are documented in the agreement. However, make sure the LOI has 99% of what you'd be keen to negotiate on in writing. If you argue for something in the TA that you had not mentioned in the LOI, the landlord can consider that negotiating in bad faith and not return your deposit.
Navigating the rental market in Singapore can be challenging, especially for newcomers. By understanding common rental scams and familiarizing yourself with the local rental process, you can protect yourself from fraud and make informed decisions. Always stay vigilant, use reputable resources, and ensure all agreements are documented in writing. With the right precautions, you can enjoy a smooth and secure rental experience in Singapore.
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