letter of intent - please give your advise

[rexwrx]

hi all,

i've just received our letter of intent to lease a property. i've got few questions that I'd like to ask whether the conditions stated within are reasonable or not.

here are some:

> security deposit (2 mths rental for 2 years lease). I take it this is ok as they are 2 months' advanced rent, no?

> good faith deposit (2 months rental too) -> i'm assuming this is the BOND? and if so, why is it 2 months? shouldn't it just the 1 month?

> stamp duty to be borne by tenant - ??

> air-conditioning system - "The tenant shall take up a service contract with a reliable air-conditioning contractor and keep the air-conditioning units in good and tenantable repair and condition and to service and maintain the same, once every THREE months at tenants' expense?????

three months? reasonable?


thanks people!

[ksl]

> air-conditioning system - "The tenant shall take up a service contract with a reliable air-conditioning contractor and keep the air-conditioning units in good and tenantable repair and condition and to service and maintain the same, once every THREE months at tenants' expense?????

This would not be acceptable to me, because you have no idea of the quality of service the air con had in the past, this must be a NO NO it is also a fixed item in the property and maybe very old.

You must emphasize that this is the landlords responsibility or the management company and is no doubt included in the premium rental rate charged anyway! Do not sign your life away...

I also wouldn't pay both security deposit and bond though that is just me...

2 months is normal on a 2 year contract, I would believe bond of 1 month.

Make sure you do a complete inventory of all walls, floors and ceilings for damage record with camera, think that they may try to keep your deposits and bond.
It happens very often and you have very limited legal rights as a tenant.

[rexwrx]

> air-conditioning system - "The tenant shall take up a service contract with a reliable air-conditioning contractor and keep the air-conditioning units in good and tenantable repair and condition and to service and maintain the same, once every THREE months at tenants' expense?????

This would not be acceptable to me, because you have no idea of the quality of service the air con had in the past, this must be a NO NO it is also a fixed item in the property and maybe very old.


You must emphasize that this is the landlords responsibility or the management company and is no doubt included in the premium rental rate charged anyway! Do not sign your life away...

I also wouldn't pay both security deposit and bond though that is just me...

2 months is normal on a 2 year contract, I would believe bond of 1 month.

Make sure you do a complete inventory of all walls, floors and ceilings for damage record with camera, think that they may try to keep your deposits and bond.
It happens very often and you have very limited legal rights as a tenant.

ok mate, so ur saying air-conditioning servicing is out altogether. that makes more sense to me. Though i'd probably clean it half yearly.

it's a landed terrace house, so it's a private property. that means landlord shd service them (air conditioning) if they break down, no??


Alright, do we take detailed dated pictures only before we sign the lease agreement, or do I do it now when I'm about to sign the Letter of Intent??

As there'd be a few things to be done (minor clean up and repairs) maybe it's better I take during BOTH letter of intent and lease agreement??

[rexwrx]

does anyone know what this means?

monthy rental $xxx inclusive of monthly maintenance charges and GST (if any) payable monthly in advance.


what's the monthly maintenance charges?

[jpatokal]

does anyone know what this means?

monthy rental $xxx inclusive of monthly maintenance charges and GST (if any) payable monthly in advance.

what's the monthly maintenance charges?

Monthly charges paid by the property owner to the condo management.

Re: air-con servicing, it's quite common to require the tenant to maintain the aircon at their own expense (~$25/unit), although every three months is (IMHO) a little excessive. Try making it every half year? But to "keep the air-conditioning units in good and tenantable (!) repair and condition" -- that is, fix the aircon if it breaks down -- is definitely the landlord's job.

I've never heard of a "good faith deposit" in Singapore, although they can ask for one month's rental in advance.

[macaroonie]

This does sound a bit strange. They can ask for a 2 month 'security deposit' or bond for a 2 year contract, but not a good faith deposit on top of that - i mean what is a good faith deposit anyway when you have paid the security deposit.

I thought that if you sign a 2 year contract, you only need to pay 1 month's advanced rental on top of the security deposit.

With the air conditioning, i know servicing it every 3 months is a bit excessive, but it looks like that is the market practice?

These people sound a bit dodgy... be careful!

[QRM]

We always have the aircon on so servicing them every three months is a must, the filter bungs up pretty quickly making them inefficient.

Our contract states we have to regularly service them by a reputable aircon company, the landlord will carry out the first service and inspection to check for any defects then its our responsibility.

Its the landlord cost should they breakdown or develop a fault.

[rexwrx]

hi guys thanks for all the inputs so far on the air-conditioning etc.

i'm perplexed about this GOOD FAITH DEPOSIT (aka. bond) which is payable on signing Tenancy Agreement.

Now, I've been told that for ONE year lease, Bond is 1 month's rental, for 2 years, is TWO month's rental bond.

and it seems right, no, can anyone please please advise me? it's also written here (although i doubt who's the author):


-> under Good faith deposit (or aka Bond)

now, it (the site above) also says on that point (Bond) that at the end of the 1 year lease, Tenants get FULL refund of the 1 month's bond. However, this is not stipulated in the Letter of Intent that I got.

so should I put it down explicitly on the letter of intent?

seems a bit dodgy to me.

can anyone please advise me? i'm really in need of help.

[rexwrx]

This does sound a bit strange. They can ask for a 2 month 'security deposit' or bond for a 2 year contract, but not a good faith deposit on top of that - i mean what is a good faith deposit anyway when you have paid the security deposit.

I thought that if you sign a 2 year contract, you only need to pay 1 month's advanced rental on top of the security deposit.

With the air conditioning, i know servicing it every 3 months is a bit excessive, but it looks like that is the market practice?

These people sound a bit dodgy... be careful!

hi, yes, my concern is the Security deposit as they are asking for 2 months' rental, however, it seems like the 1st security deposit will be REFUNDED on completion of the 1st year of lease.

as what i understand from here:


does this sound right mate?

[wcs]

I guess a related question is, how many people here ever get the full deposit back? Or are reasons found to let the landlord keep it?

It is my understanding that bonds here are not required to be kept in trust, like they are in Australia. So if the money has gone into someone's bank account, what is the likelihood of them wanting to give it back?

[QRM]

Work on the assumption you will never see the deposit again and you wont be disappointed. Take the total loss of the deposit into the overall rental calculations. If you do get anything back treat it as a bonus.

Your understanding and the Singapore landlords of fair wear and tear will be poles apart. ( a small scratch on a wood floor will mean the whole place has to be sanded etc.)

[rexwrx]

so who gets their deposit back?

i'm running a poll

[macaroonie]

Rexwxr - not this does not sound right at all - i have never heard of anyone needing to pay an extra 2 months good faith deposit and getting it back at 1 yr into the contract. My advice is to stand clear of these people, it sounds so so dodgy!!!!

[rexwrx]

Rexwxr - not this does not sound right at all - i have never heard of anyone needing to pay an extra 2 months good faith deposit and getting it back at 1 yr into the contract. My advice is to stand clear of these people, it sounds so so dodgy!!!!

hi maca, thanks for the advise, i too find that uncommon. however, i've asked as many as 4 different agents and they all seem to agree that it's usually practised in this way, 1 month for 1 year's lease, 2 months for 2 years, first month refunded on expiry of 1st year's lease.

what did you pay on your security depo? 1 mth i take it?

[macaroonie]

You know it's not even the condition that you pay extra deposit and get it back after 1 yr- it just seems like these people are swindling you. If they can get away with this they may try extra tricks down the road. I have never heard of this before and i've met many many agents in my years here.

I would probably find another place and use another agent, more honest, decent ones.

Are you desperate to find a new place or do you have a bit of time on your hands?