LMB Housing Services insists that its business does not operate outside the legal barriers.
LMB Housing Services, a company that leases units at private condominiums and sublets them, said it explicitly informs potential clients and tenants that renting a private property here for less than six months is prohibited.
“Our contracts clearly state that it is illegal to offer leases for less than six months in Singapore. Our website is extremely clear on that too,” LMB’s co-founder Franck Boullier told PropertyGuru.
The company has also been working closely with the Urban Redevelopment Authority (URA) to ensure compliance. In fact, the agency has been inspecting its units over the past few years, and these inspections were found to be satisfactory.
This is in response to a recent report in The Business Times alleging that the company uses clever wording of its tenancy agreements to skirt the URA rules against short-term stays of less than six months.
In particular, the report stated that LMB uses an open-ended agreement that lays down a minimum lease of six months without specifying the last date of stay. It also gives tenants the right to end the lease without incurring a penalty if they submit a termination letter 30 days before departing.
According to the company, its clients are usually professionals assigned here for several months, who cannot commit to one- or two-year leases.
“Some of our customers were involved in building some of the attractions in Resorts World Sentosa, for instance. Others were experts brought in to supervise and control the work on oil rigs. They can be scientists that are involved in research projects, or teachers who are sent here to teach in schools for one or two semesters.
“Because they are working on projects, our customers need to have the flexibility to adjust the end date of their lease,” said Boullier.
He revealed that some condo owners prefer to rent to them as they are happy with how LMB maintains their property. The company also makes it a point to verify that all occupants are legitimate professionals legally allowed to work and stay in Singapore.
Meanwhile, the URA said it needs more time to study the issue on short-term stays, after a public consultation on the issue failed to reach a consensus, reported The Business Times.
However, one vital feedback received is that any revision to the rules should be fair to all market players.
“Currently, regulated accommodation providers such as hotels and serviced apartment operators are subject to various regulatory requirements to ensure the safety and well-being of occupants. They are also subject to business taxes,” added the agency.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
