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Lease Agreement or Tenancy Agreement

Before you can move in, a lease agreement, otherwise known as a tenancy agreement, will be drawn up. This is essentially a legal contract between the landlord and the tenant and details the terms of the lease. The duration of the lease is usually 2 years with an option to renew for a further 1 year, based on the then-market rental or a mutually agreed rental amount.

Diplomatic Clause

Most lease agreements will contain a diplomatic clause which enables the tenant to terminate the lease before the end of the lease period. Tenants are usually able to terminate the lease after 12 months with 2-3 months' written notice to the landlord, subject to

(a) satisfactory documentary proof of the occupant being transferred or relocated from Singapore to another country.

Tenant

Usually, when you take out a lease, you are termed the tenant, whilst your family are the occupants. The lease agreement will then be signed by the tenant and the landlord.

Landlord

This refers to an individual who owns one property in a block or complex, or a landed property, or a major developer who owns the entire development.

Rent

This is the monthly amount payable to the landlord for the entire term of the lease. It is usually paid in advance at the beginning of each month or on the date of the lease commencement. In the event that you are renting a private apartment or condominium, this rental amount will usually include the monthly maintenance charge paid to the Management Corporation of your development. This monthly maintenance charge covers costs of maintaining shared compounds and facilities such as security, cleaning and lighting of common areas etc.

Goods and Services Tax (GST)

Introduced on 1 April 1994, the GST was revised is now 7%. The lease of residential properties is exempt from GST but the lease of furniture, fixtures, fittings and maintenance charges is taxable.

Stamp Duty

Stamp duty on the lease agreement is a statutory requirement and is normally paid by the tenant. The amount of stamp duty payable is based on the rental amount and the period of lease.

Initial Deposit

This is a deposit that is paid "subject to contract" when an offer is made on a property, but before receiving the lease agreement. When the lease agreement has been signed by both parties, this deposit will form part of the security deposit which typically consists of 2 to 3 month's gross rental.

Furnishing

Properties can be leased either unfurnished, partially furnished or fully furnished.

Partially furnished properties usually come equipped with air-conditioning, basic kitchen appliances, washing machines/dryer, lighting and drapery.

Fully furnished properties on the other hand include furniture in addition to the items listed above. These would consist of a sofa set, dining set, beds etc. The rent for fully furnished properties will correspondingly be adjusted to reflect the capital outlay for these furnishings.

Agent’s Commission

Commission is payable to the property agency and is usually borne by the landlord. However, if the rent is less than S$2,500 per month, the tenant would need to pay commission as well. Expenses incurred during the viewing process such as petrol, transport, meals etc. are borne by the agent.

Occupant's/Tenant's Responsibility

The tenant is responsible for ensuring that the leased property remains in good condition and minor repairs up to a certain monetary value are usually borne by the tenant. A detailed list of the tenant's responsibilities can be found below:

Landed Property: Maintenance of garden, swimming pool and auto-gate, if applicable, pest-control, telephone/utilities bills, and servicing of air-conditioning units.

Apartment/Condominium: Maintenance and servicing of air-conditioning units, pest-control, and telephone/utilities bills.

Returning of Premises to the Landlord

Upon expiry of the lease, the tenant is expected to return the premises to the landlord in the same condition as the day he received it, subject to fair wear and tear. The landlord will then inspect the premises and check that there has not been a breach of contract. When these are satisfied, the landlord will refund the security deposit to the tenant.

Leaving after your long stay

As you prepare to return to your homeland, we do hope you enjoyed your time in Singapore and found it to be an enriching experience. Leaving a country is no less complex than moving to one, and that is why we've provided you with a handy checklist to ensure that your departure is as smooth as your arrival.

Moving out checklist:

· Check that your passports are valid and that you have all the necessary entrance visas, work permits, residency permits, and inoculations

· Notify landlord, wind up lease, receive your security deposits

· Notify local bank and arrange for transfer of funds

· Notify your children's schools

· Cancel employment, dependent and student passes (Immigration and Checkpoints Authority, http://www.ica.gov.sg, Tel: 6391 6100)

· Disconnect telephone line(s) and arrange for the return of any deposits (SingTel, http://www.singtel.com.sg, Tel: 1609)

· Disconnect gas, water and electricity accounts and arrange for the return of any deposits (Singapore Power, http://www.spower.com.sg, Tel: 1800 284 6600)

· Disconnect cable TV if applicable (Starhub Cable Vision, http://www.starhub.com, Tel: 6873 7373)

· Notify clubs, organizations, subscription services and settle accounts

· Arrange for mail redirection (Singapore Post, http://www.singpost.com.sg, Tel: 6841 2000)

· Cancel any local insurance coverage. Arrange for insurance to cover "all risks" from door to door.

· Obtain family records such as medical, dental, and school reports

· Dispose of unwanted items. Use bulletin boards in supermarkets and clubs, as well as classified ads in the newspapers, or have a garage sale. You can also consider donating your unwanted items to charitable organizations such as the Salvation Army

Please remember to inform all parties of your change in address.

Disclaimer: The information provided above is meant to serve as a guide, please seek professional advice if there are any uncertainties in the transaction.