What Should You Know When Subletting HDB Flat?
Renting out your HDB flat or private property, or even a bedroom can guarantee you attractive extra income. With the new hefty seller’s stamp duty aimed at curbing speculators, some private property owners prefer to sublet instead of flipping their property to avoid a dent in their profits. Following detail what you need to know before drawing up that lease agreement on hdb rental http://www.huffe.com/singapore-hdb-rental.
What do You Need to Know When Subletting Your HDB Flat?
If you want to rent out the whole flat, you must satisfy the condition of a three- or five-year Minimum Occupation Period (MOP). For owners of a non-subsidised flat bought from the open market without a housing grant, if your application to purchase was dated before Aug 30, 2010, you need to live there for three years, or five years if your papers were received after this date. Those who bought a flat directly from the HDB or enjoyed a housing grant from the CPF board must fulfill the MOP of five years.
Ensure your foreign tenants have valid papers like Employment Pass, S Pass, Work Permit, Student Pass or Dependent Pass. Don’t forget to take note of their expiry date and make sure it is valid throughout your tenancy. Keep within the maximum number of tenants allowed to occupy your home. For example, four tenants are allowed in a one or two-room flat, six tenants in a three-room unit and nine in four-room and larger units.
What’s more, you cannot rent out your flat to people own executive condominium units who have not met their five-year MOP, or to those who own or rent out their own HDB flats. The only exceptions are if the potential tenant is divorced or legally separated, or is eligible to sublet his or her own flat.
Finally, remember to get the hdb rental approval before you rent out your unit. Submit your application at www.hdb.gov.sg/MyHDBpage. It costs $20 and allows you to sublet your flat for three years. Your tenant must also pay stamp duty to the Inland Revenue Authority of Singapore. The same MOP rules apply to Executive Condominium owners who have taken a grant or bought it directly from HDB.