Renting a home entails many upfront costs other than the actual rent that can be easy to miss when you’re planning your next move.
We’ve put together a list of the costs that you need to be aware of & things you should take note of whilst renting an apartment in Singapore. This article gives you a breakdown of the costs involved in find a condo for rent in Singapore before, during & after your tenancy.
Know your Budget
Before you start your search for the perfect condo, do have a good idea of your rental budget. List down your current monthly expenses and set aside how much you are willing to spend on monthly rent. Normally, it is advisable that your entire household budget amount to not more than 30-35% of your paycheck. Your household budget should include electricity, TV, internet and other utility bills.
Overall Expenses When finding a Condo for rent in Singapore
A typical lease period for a property in Singapore ranges between 1 to 2 years. However, the preferred lease period that most landlords allow is 2 years.
Here is a summary of tenant costs:
Let’s take an example based on a S$6,000 monthly condo rental. Normally, you’d have to pay an advance rent of S$6,000 (equivalent to 1 month’s rent) upon signing a Letter of Intent .
After this, a refundable deposit of S$6,000 ( equivalent to 1-month’s rent) for a 1-year lease or S$12,000 (equivalent to 2 months’ rent ) for a 2-year lease needs to be paid. The refundable deposit is payable to the landlord upon signing the tenancy agreement in Singapore.
For a one year lease, you would be required to pay the agent representing you, an agency commission equal to half a month’s rent or roughly S$3,000 & an equal amount should you choose to renew your lease. For a 2 year lease, the landlord will pay the agent a fee of S$6,000 (equal to a month’s rent) for a 2-year lease and the same amount upon renewal of the contract. Do note that in the case of a two-year lease, the agency commission paid by the landlord gets split up evenly between the landlord’s agent & the agent representing you.
You will be required to pay a stamp duty tax of roughly S$300 or around 5% per year for a 1-year lease or S$600 for a 2-year lease.
During the Tenancy
During your stay, here’s an estimated breakdown of your monthly tenancy related household expenses.
We recommend you set up a monthly wire transfer so that the funds get wired to your landlord’s account automatically. In our example, this would entail a sum of S$6,000 per month.
For your monthly utility and electricity bills, you can average a budget of around S$300 to S$400 depending on usage. Some utility consumptions are optional, but you can estimate spending around S$50 to S$100 for TV and S$50 to S$80 for internet bills.
For air-conditioner maintenance, you can expect to spend S$150 to S$200 per quarter. Your landlord should take care of the repair costs in case your air conditioner breaks down.
Should you choose to engage a maid, cleaning costs are around S$60 to S$100 per week. If you have minor repairs needed, you can expect to pay at least S$150 to S$200.
End of the Tenancy
Towards the end of your lease, prior to handing your property over to the landlord, you should make sure that everything is in order. This is also fair to both your landlord and the potential new tenant.
Budget around S$300 to S$400 for minor repairs, S$150 to S$300 to have your curtains washed and S$60 to S$100 to get your condo cleaned before handing it over back to the landlord.
Creating a financial plan and budget will help you identify the costs of renting a condo in Singapore. Researching on the property expenses and other incidental costs such as transportation back and forth between your condo and office will help you decide where to live. It is important to know what you are getting into before making a final decision.
How can we assist you?
We can help you with all the essential information & advice you need in looking for the best condo for rent in Singapore. With Greyloft, you will be assigned an experienced and licensed in-house property agent who will assist you throughout the entire process of finding your perfect home. You can get in touch with a Greyloft agent today.
We’ve summed up the information in this article in the following infographic. We hope this helps you whilst searching for a condo for rent in Singapore.