Upfrnt Insights - 2025 Rules and Regulations Landlords Need to Know Before Renting Out Your Property in Singapore

2025 Rules and Regulations Landlords Need to Know Before Renting Out Your Property in Singapore

Renting out properties in Singapore is a profitable investment, but landlords must navigate a complex regulatory landscape to avoid penalties. These guidelines, primarily governed by the Housing and Development Board (HDB) for public housing and the Urban Redevelopment Authority (URA) for private properties, are designed to ensure fair practices and proper use of residential properties. Additionally, other authorities like the Ministry of Manpower (MOM), Inland Revenue Authority of Singapore (IRAS), also play a role. Here’s your updated guide for 2025.

1. HDB Rules for Renting Out Flats or Rooms

Eligibility of Landlords

Citizenship: Only Singapore Citizens can rent out their entire HDB flats. Permanent Residents (PRs) are not eligible.
Minimum Occupation Period (MOP): Landlords must fulfill a five-year MOP before renting out their flats. For flats purchased without subsidies before 30 August 2010, the MOP is three years.).
Loan Payments: Landlords must ensure that their HDB loan payments are up-to-date before applying to rent out their flat.

Rules for Renting Out Rooms

Minimum Occupation Period (MOP): Owners can rent out individual rooms during the MOP but they must continue to be staying in the flat make sure each room lease is at least 6 months. Landlords cannot lock up a room and rent out the rest of the flat without physically staying in it.
Flat Size: Only owners of three-room or larger HDB flats can rent out spare bedrooms. Smaller flats are not eligible.
Original Layout: Only bedrooms that were part of the original HDB construction may be rented out. Partitioned or repurposed rooms are prohibited.

Occupancy Limits

Two-room flats: Maximum of 4 occupants.
Three-room flats: Maximum of 6 occupants.
Four-room or larger flats: Temporarily increased to 8 occupants from January 2024 to December 2026.

Tenant Eligibility

Tenants must hold valid passes with at least six months of validity, such as Employment Passes, S Passes, Student Passes, Dependant Passes, or Long-Term Visit Passes.
Work Permit holders in the Construction, Marine, and Process sectors must be Malaysians if renting an HDB room.
The Non-Citizen Rent Out Quota limits non-Malaysian non-citizen tenants to 8% per block and 11% per neighborhood.

Approval Process

Landlords must apply for approval through My HDBPage or Mobile@HDB before renting out their flat or rooms. The process includes:

Submitting tenant details and supporting documents.
Paying an administrative fee ($20 per whole flat or $10 per bedroom).
Awaiting approval, typically within one to two weeks.
Informing HDB within seven days of any changes in tenant details or when tenants move out.

Notification Requirements: Landlords must notify HDB within seven days of tenancy terminations, subsequent renewals, or changes to tenants’ particulars. This ensures compliance with HDB regulations and helps maintain accurate records.

2. URA Rules for Renting Out Private Properties

Minimum Rental Period

Private residential properties must be rented for at least three consecutive months. Short-term rentals (e.g., Airbnb) are prohibited.

Occupancy Limits

Units smaller than 90 sqm: Maximum of six unrelated occupants.
Units 90 sqm or larger: Temporarily increased to eight unrelated occupants from January 2024 to December 2026.

Partitioning Restrictions

Partitioning works must preserve the property’s nature as a single self-contained residential unit.

3. Tenant Screening Checks

For landlords renting to non-Singaporeans, thorough screening is crucial to ensure compliance with MOM regulations and avoid legal issues:

Verify Immigration Status:
- Check the tenant’s (and occupants') original immigration pass or work pass.
- Cross-check details on the pass against their passport.
- Use the ICA’s online portal to verify immigration passes or MOM’s online portal for work passes.
Confirm Validity:
- Ensure passes are valid for at least six months from the start of tenancy.
- Inspect the holographic lenses on MOM-issued passes to confirm authenticity (e.g., photo reflection and Foreign Identification Number).
Use MOM’s Foreign Worker Tenant Enquiry Service (FWTES):
- Check how many foreign workers are already occupying the property using FWTES.
- Ensure compliance with occupancy limits and prevent fraudulent address declarations.
Optional Employer Verification:
- Contact the tenant’s employer to confirm employment details if necessary.

These steps minimize risks such as illegal subletting, false address declarations, or criminal misuse of your property.

4. Inland Revenue Authority of Singapore (IRAS)

Landlords are required to:

Pay stamp duty on tenancy agreements within 14 days of signing.
Declare rental income as part of person income in their annual tax filings.

5. Penalties for Non-Compliance

Failure to adhere to these regulations can lead to severe penalties:

Fines: Up to $200,000 for illegal subletting in private properties.
Repossession: HDB may repossess flats if landlords breach rules.
Revocation: Rental approvals may be revoked if occupancy caps are exceeded or tenant eligibility is violated.

6. How Upfrnt Helps Landlords Stay Compliant

Navigating these complex regulations can be overwhelming, especially for first-time landlords or those living overseas. Upfrnt simplifies compliance by:

Verifying tenant eligibility through ICA and MOM platforms and our own KYC software.
Assisting on procedures to obtain rental approvals with HDB.
Providing transparent reporting on tenant details, lease agreements, and tax obligations.
Offering proactive property management services such as tenant screening, maintenance support, property inspections and rent collection.

Conclusion

Renting out your property in Singapore requires strict adherence to rules set by HDB, URA, MOM, IRAS. Staying compliant protects your investment while ensuring a smooth rental experience for both you and your tenants.

By partnering with professional property managers like Upfrnt, landlords can navigate these regulations effortlessly while maximizing returns on their investments.

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