tenancy length

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missorange
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tenancy length

Post by missorange » Wed, 13 Jul 2011 3:23 am

hi there...we are contemplating a move to Singapore, and we have been told that rental tenancies are only possible for a minimum for 2 years...is this correct? grateful for any info, thanks.
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JR8
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Re: tenancy length

Post by JR8 » Wed, 13 Jul 2011 3:55 am

missorange wrote:hi there...we are contemplating a move to Singapore, and we have been told that rental tenancies are only possible for a minimum for 2 years...is this correct? grateful for any info, thanks.
Technically I expect you could contract to lease for whatever duration you wished. But in practice 2 years is standard, and requesting/requiring a break-clause is pretty usual too.

See... http://www.singaporeexpats.com/guides-f ... riates.htm
.... re: the break clause/aka 'Diplomatic Clause'

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Post by Venomrush » Wed, 13 Jul 2011 6:18 am

in terms of tenancy length, does having a contract longer than 2 years help to reduce the rental price?
secondly, do landlords allow to increase the price during the contract for reasons such as inflation?

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sundaymorningstaple
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Post by sundaymorningstaple » Wed, 13 Jul 2011 7:05 am

It doesn't help you to get a reduced rental, but it does lock your rental rate in for two years. Of course, that has a possible flip side as well if rental rates fall through the cellar and you are stuck with another years of high rates. But on the other hand, you're locking in the rate during low rental rates could reap you savings for another years.

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SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by Saint » Wed, 13 Jul 2011 8:56 am

I year are readily available but agents will try and tell you they aren't. Basically the agent get more commission for very little work. I always go for a 1 year plus option to renew (1+1) the main reason being I'm not going to a LL, I don't know from Adam, 2 month's rent as a deposit.

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Post by Venomrush » Sat, 16 Jul 2011 4:13 am

just wondering if going through agent will be a good idea for long term contract? as i'm planning 2 years min

i have a feeling they will get the paperwork done right compare to dealing with landlord direct and avoid agent fee.

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Post by x9200 » Sat, 16 Jul 2011 8:24 am

Venomrush wrote:just wondering if going through agent will be a good idea for long term contract? as i'm planning 2 years min

i have a feeling they will get the paperwork done right compare to dealing with landlord direct and avoid agent fee.
The paperwork is minimal. You need to have a tenancy agreement (likely the landlord will have an old agreement you need to read and modify) and later pay the stamp fee. You need to verify the ownership - request it from the landlord. That's about the essentials. Many of the agents are not only incompetent but will also work against you as the commission is linked to the amount of the rental. If you don't know personally any agent who you could trust I would recommend to avoid them as a plague.

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Post by BillyB » Fri, 22 Jul 2011 9:54 pm

Saint wrote:I year are readily available but agents will try and tell you they aren't. Basically the agent get more commission for very little work. I always go for a 1 year plus option to renew (1+1) the main reason being I'm not going to a LL, I don't know from Adam, 2 month's rent as a deposit.
My thoughts to a tee.

Most of the time it's simply an agent ploy - to get that extra 2 weeks commission from the deal - without any consultation with the owner to see if they will accept a 1 year term (in most cases they will). They are happy to see a deal go down the pan rather than take the half the comm's and swiftly move onto the next property they have to let out.

Plus, if you're putting something like 10-20k down - it's capital at risk and also loss of potential earnings. Stick 20k in a FI product, and you'll pull in a few $k off the coupons / interest.

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Re: tenancy length

Post by lukeduke » Fri, 22 Jul 2011 11:34 pm

I am coming out in September and will only need a 6 month rental of a 1 bed place before my family joins me in February. Are 6 month let's achievable?? Thinking east coast way as that is ultimately where we want to live / kids school

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Post by sundaymorningstaple » Sat, 23 Jul 2011 12:10 am

Six months is almost undoable unless you happen to catch someone exercising a dip clause. One Bedroom places, for all intents and purposes do not exist (there are some but the rentals are ridiculous and they are more scarce than hen's teeth, so finding a 6 month'er I wouldn't even think about.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by ukdesigner » Sat, 23 Jul 2011 11:20 am

Have just seen lots of 1 bedrooms advertised recently on that craigs website. They're going for about 4k - 6k a month! That's just crazy crazy prices when you can get a 3 or even 4-bed condo for that money. One even had a picture of the bedroom having a glass wall between the lounge and bedroom.
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Post by vozzie » Sat, 23 Jul 2011 12:20 pm

Just from my own experience ....

We opted for, and got, a 12 month lease in the first year.
At the end of that, we actually asked for, and got, an 11 month lease extension ... to fit in with our travel plans.

I guess the rule is ... if you never ever ask ... you'll never ever get.

By the way, we have a great agent, who does all she can for us, but she was arranged and recommended by our employer.... so I guess she wants to keep that relationship.

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Post by x9200 » Sat, 23 Jul 2011 1:10 pm

I guess it is up to the individual. We normally ask for 2y contract plus 1y option to renew. Yes, there is a risk that the LL may have some appetite on your deposit but then may also have even greater appetite to unreasonably increase the rent after 1st year and moving the apartment always generates a lot of costs and problems. We rather take the risk on the deposit side then this kind of insecurity. Besides, if the 2y + 1y option gets executed we always request to reduce the deposit to 1m only.

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Post by vozzie » Sat, 23 Jul 2011 1:34 pm

Yes, you have made a good point. Our LL asked for a 40% rent increase at the end of the first 12 months. We managed to negotiate it down to a 13% rise.

So, you certainly have to take that into account. But, all things considered, having the option to change apartments at the end of the first year (without penalty) suited our particular situation.

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