You will be able to list every payment a tenancy agreement commits you to.
Ravi is 30, an engineer who moved to Singapore two years ago on an Employment Pass. He and his wife Meera found a two-bedroom condo unit in Clementi they liked. The agent sent over a tenancy agreement to sign that evening, saying another couple was interested. It was eleven pages long. Ravi read the rent and the address on page one and reached for a pen. Meera asked how much they'd actually be paying before they moved in, and neither of them could answer without going back through the document.
A tenancy agreement commits you to more payments than the rent, and some of them are due before you get the keys. This lesson shows you where each one is in the agreement and what to check, so you can list every payment before you sign.
The money terms usually sit near the start of the agreement. Find these four.
The rent: the monthly amount, and what it includes. Some agreements include furniture, maintenance fees or utilities, and many don't.
The security deposit: a sum you pay at the start, held by the landlord until the tenancy ends, and returned after deductions for unpaid rent or damage. It's often a multiple of the monthly rent. Lesson 7.3 covers how to get it back.
The payment date: the day each month's rent is due, and how you're expected to pay it, such as by bank transfer or GIRO.
Late payment terms: many agreements charge interest on late rent, at a rate stated in the agreement, and some allow the landlord to end the tenancy if rent is late beyond a certain point. Read these lines closely. They're the ones that turn a forgotten transfer into a bigger problem.
Ravi and Meera's agreement, with figures used as an example, set the rent at S$4,200 a month for two years, with a deposit of two months' rent, S$8,400, and the first month's rent due on signing. So before moving in, they would pay S$12,600, plus whatever else the agreement required.
Tenancy agreements in Singapore are subject to stamp duty, which IRAS collects. It's calculated on the rent over the period of the lease. The agreement usually says who pays it. In practice it's often the tenant, but read your agreement rather than assume.
Stamp duty must be paid within a set time after the agreement is signed, and late payment attracts penalties. IRAS's website has a stamp duty calculator for leases and states the current rates and deadline. Work out the figure before you sign so it isn't a surprise, and keep the stamp certificate with the agreement.
If agents are involved, there's commission to pay. Who pays it, how much and when depends on the arrangement between the agents and the parties, and it isn't always set out in the tenancy agreement itself. It's often in a separate letter or agreement with your agent.
Ask directly: who is paying commission, to which agent, how much, and when is it due? Get the answer in writing. If you appointed your own agent, read what you signed with them. If you didn't appoint an agent, check whether anyone expects commission from you at all.
There's a second reason to understand commission, which comes up in lesson 7.2, The diplomatic clause and leaving early. Some agreements require you to repay part of the commission the landlord paid if you end the lease early.
Ravi and Meera hadn't appointed their own agent. The landlord's agent confirmed in writing that the landlord was paying his commission and nothing was due from them.
If the home is an HDB flat, extra rules apply. HDB sets rules on who can rent out a flat, the minimum rental period, the maximum number of occupants, and approvals the owner must get before renting. Tenants have obligations too, such as eligibility to rent. These rules are on HDB's website and they change from time to time.
Check them before you sign. A tenancy that breaks HDB's rules can cause problems for the owner and for you, including having to move out at short notice.
The useful output from all this is a short list: every payment the agreement commits you to, with the amount, the due date and who pays. Write it before you sign, not after.
Ravi and Meera's list read: first month's rent, S$4,200, on signing. Deposit, S$8,400, on signing. Stamp duty, worked out with IRAS's calculator, paid by them within IRAS's deadline. Commission, nothing from them, confirmed in writing. Monthly rent, S$4,200, by the first of each month by bank transfer, with late interest at the agreement's rate. They also noted the amounts they'd be responsible for during the lease, such as minor repairs and aircon servicing, which lesson 7.3 covers.
With the list in hand, they asked the agent for one more day to read the rest, and got it. Have a tenancy agreement you hold or are reviewing open beside you, and go through it for every amount and date.
List every payment in a tenancy agreement you hold or are reviewing, with the amount, due date and who pays.
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