Flat-owners in Singapore will be allowed to rent out their flats or bedrooms to non-Malaysian non-citizen residents for a maximum of two years up from the present 1.5 years, announced Housing and Development Board (HDB) today.
The above order will be implemented from January 1, 2019.
The revised tenancy period will apply to all rental applications involving non-Malaysian non-citizen tenants that are received by HDB on or after Jan 1, 2019.
This revision will give flat owners greater flexibility to secure a longer tenancy period with non-citizen tenants who may have work/ immigration passes that are valid for a longer period of two years.
The maximum tenancy period where all the tenants are Singapore citizens and/or Malaysians remains unchanged, at three years.
Flat owners who are currently renting out their flat or bedroom(s) to non-Malaysian non-citizen tenants with HDB’s approval may continue to do so for the remaining approved duration.
Renting Out Flat
A Singapore citizen can rent his flat if he and his tenants meet certain conditions. There are the various eligibility conditions that he and his tenants have to meet, including the Non-Citizen Quota for Renting Out of Flat.
Eligibility conditions for flat owners
Singapore citizens who have fulfilled the Minimum Occupation Period (MOP) can rent out their flats. You can rent out your flat after fulfilling the 5-year MOP. If your flat is non-subsidised (purchased from the open market without a housing grant) and purchased before 30 August 2010, the MOP is 3 years.
If you are the original purchaser, the MOP is computed from the date of purchase of the flat
If there has been a transfer of flat ownership, the MOP is computed from the effective date of the transfer of flat ownership, or the date the owner was included as an authorised occupier of the flat
After a resale of part-share, the owners have to meet a fresh MOP computed from the effective date of resale.
Non-Citizen quota for renting out of flats
Singapore citizens will have to consider the Non-Citizen Quota for renting out of flat if any tenant renting your flat is a non-Malaysian non-citizen (Singapore Permanent Resident or foreigner). The quota is to help maintain a good ethnic mix in HDB estates. Malaysians are not subject to this quota in view of their close cultural and historical similarities with Singaporeans.
The quota is set at 8 per cent at the neighbourhood level and 11 per cent at the block level, and applicable if any tenant renting the whole flat is a non-Malaysian non-citizen (Singapore Permanent Resident or foreigner). If the quota is reached, only Singaporeans and Malaysians can rent a flat in that neighbourhood/ block.