The minimum rental period for private residential properties has been reduced to three months from six months previously, the Urban Redevelopment Authority (URA) announced last Friday (30 June).
The revision took effect immediately and has replaced the minimum stay duration of six months, which was implemented in 2009.
However, short-term rentals of less than three straight months, including those arranged via online home-sharing platforms like Roomorama and Airbnb, are still not permitted.
For visitors that need to rent for less than three months, serviced apartments and hotels will continue to serve to their needs.
According to the URA, it decided to revise the minimum rental period after holding a public consultation on the issue in 2015, as the majority of the respondents were in favour of a lower duration.
“In recent years, we have observed growing demand from groups seeking accommodation for periods of between three to six months. They include academics and students visiting local Institutions of Higher Learning, and professionals on work assignments.”
“The feedback from this group has been that they prefer private residential properties, considering their choice of locations, range in unit sizes, and financial affordability, over hotels and serviced apartments.”
Furthermore, the URA revealed that it is reviewing potential guidelines to facilitate short-term rentals and is planning to seek the public’s feedback on this matter.
PropNex Realty Chief Executive Ismail Gafoor told TODAYonline that landlords now have the option of leasing their private homes for shorter durations at higher rates as this type of rentals are typically 20 percent more expensive than those with longer durations.
“Nevertheless, most landlords will still prefer a long-term lease due to the security of rental income and ability to avoid the inconvenience of scouting for new tenants frequently.”
This areticle was edited by Denise Djong.