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Renting a property in Singapore can seem straightforward at first—just look at the rent, sign the lease, and move in. But many expats and students quickly find out that the actual cost of renting goes beyond the monthly rental fee, which is an unwelcome surprise for any budget.
What Hidden Costs Should I Worry About?
On average, you should budget an additional 15-50% on top of your monthly rent for hidden costs like maintenance, utilities, internet, and unexpected repairs. Let's break down these hidden expenses so you can budget effectively and avoid being caught off guard.
Air Conditioning Maintenance
In Singapore’s tropical climate, air conditioning is essential. What many newcomers don’t realize is that maintaining aircon units is typically the tenant's responsibility, not the landlord’s.
For a typical 1-bedroom apartment with one or two aircon units, servicing costs around SGD 30 to SGD 50 per unit per session. This means you could be paying SGD 60 to SGD 100 every three months, adding up to SGD 240 to SGD 400 per year.
Regular Maintenance
Most tenancy agreements in Singapore require tenants to service air conditioning units every three months. While not mandated by law, this is a standard clause in most rental contracts. If you skip regular servicing and the units malfunction, you may be held responsible for the repairs. On the other hand, regular servicing records could shift the responsibility for major repairs to the landlord.
Utilities (Electricity, Water, Gas)
Utilities are another significant hidden cost that renters often underestimate. For a 1-bedroom apartment, utility costs will typically range from SGD 150 to SGD 200 per month, though this can be higher if you use aircon intensively, which increases your electricity usage.
Electricity
For a 1-bedroom apartment, expect to pay around SGD 100 to SGD 150 per month in electricity, especially if you use air conditioning regularly. Without aircon, the bill might drop to SGD 50 to SGD 80 just for electrical appliances.
Water
Water usage for a single person typically costs SGD 20 to SGD 30 per month, though this can vary depending on your habits.
Gas
If your apartment uses gas for cooking or water heating, expect to pay SGD 15 to SGD 30 per month.
Internet and Cable TV
A reliable internet connection is essential, particularly for remote workers or frequent streamers. In Singapore, most internet and cable TV contracts are 2 years, with a monthly bill. So if you plan to move away before then, keep in mind to transfer these services to the next tenant.
Internet
Broadband packages for a 1-bedroom apartment range from SGD 30 to SGD 60 per month, depending on the speed and provider. If you need faster speeds, expect to pay closer to the higher end of this range.
Cable TV
If you want cable TV, budget an additional SGD 30 to SGD 50 per month. International channel packages will increase the cost.
Pest Control
Pest control is often overlooked by first-time renters. While it's more common for larger homes, some landlords include a pest control clause in leases for smaller units, especially in older or ground-floor properties. Carefully check your tenancy agreement to see if pest control is your responsibility!
If pest control is part of your responsibility, expect to pay SGD 150 to SGD 300 per session, with quarterly or even monthly treatments being common. This could add SGD 600 to SGD 1,200 per year to your expenses. For larger units or those with recurring pest issues, you might need even more frequent treatments.
Repairs
One of the biggest surprises for expats is the expectation that tenants are responsible for many repairs. Most tenancy agreements state that tenants cover the cost of repairs up to a certain amount—usually SGD 150 to SGD 250 for a 1-bedroom unit, and up to SGD 500 for larger properties. The landlord covers anything beyond that amount, but since most repairs fall below this limit, tenants are often left paying for the majority of minor issues.
Minor Repairs
Items like leaky faucets, malfunctioning light switches, and minor plumbing issues typically are considered minor repairs and fall under the tenant’s responsibility. For example, fixing a leaky faucet could cost SGD 50 to SGD 150, which would be entirely out of pocket for the tenant.
In a landlord-centric market like Singapore’s, there is often pressure to cover more repair costs yourself. While major issues like water heater breakdowns or external damage are the landlord’s responsibility, tenants may feel inclined to pay for repairs themselves in order to remain in good standing when it comes time to renew the lease—especially since there is no rent control and landlords are free ask for double the rent.
Furniture and Appliance Maintenance
If you’re renting a fully or partially furnished apartment, you’re usually responsible for maintaining the provided furniture and appliances. If there are any damages, you'll be expected to either repair it immediately or at the end of your lease, depending on urgency and severity.
Furniture
Although wear and tear is expected, significant damage (like broken chairs or scratched tables) may result in replacement costs deducted from your security deposit.
Appliance Repairs
Tenants are typically responsible for repairs caused by improper use or negligence. Fixing or replacing a broken washing machine or fridge could cost anywhere from SGD 100 to SGD 500, depending on the issue.
Stamp Duty
In Singapore, rental stamp duty is payable on any residential lease, provided the annual rent exceeds SGD 1,000 (which most residential properties would easily exceed). The duty is calculated at 0.4% of the total rent for the lease period (up to four years). If the lease is longer than four years, it's 0.4% of four times the Average Annual Rent (AAR), but this is rare.
For example, if you rent a property for SGD 2,500 per month and sign a two-year lease, the total rent over 24 months would be SGD 60,000. The stamp duty is 0.4% of this total, which comes to SGD 240. This amount is typically paid by the tenant, though some landlords may be open to negotiating who covers this cost.
Stamp duty is required to be paid within 14 days if the lease is signed in Singapore, or 30 days if it's signed overseas.
Security Deposits
Most landlords in Singapore require a security deposit of one to two months' rent. While this deposit is refundable, it’s not uncommon for landlords to withhold part or all of it for reasons like property damage or unpaid bills.
Fighting for the return of your deposit can be challenging, as landlords hold the money and disputes are often hard to resolve. The process can be lengthy and costly, and tenants are typically at a disadvantage.
To protect yourself, thoroughly document the property’s condition when you move in. Take photos and make a note of any existing damage to prevent unfair charges later.
Budget Beyond the Rent
When renting in Singapore, it’s crucial to remember that the listed rental price is just the starting point. By factoring in hidden costs like AC maintenance, utilities, pest control, repairs, and more, you can avoid unpleasant surprises and manage your finances effectively. Also, try to negotiate terms in the tenancy agreement, and ask questions so you don't fall for common rental scams.
On average, you should expect to budget an additional 15-50% of your monthly rent to cover these extra expenses in any normal renting situation.
At Our Family Without Borders, we’ve dealt with the frustration of hidden rental costs firsthand. To help our members avoid these surprises, we offer a flat household fee that covers everything—utilities, internet, aircon maintenance, pest control, and even minor repairs. By pooling resources, we benefit from economies of scale, reducing the overall cost for everyone in the community. No extra fees, no surprises—just a simple, transparent way to enjoy your new home without the hassle.
