Skirting minimum tenancy rule with early exit clause

Keshia Faculin8 Jan 2018

Residential street in Singapore

Despite the prosecution of two men in December for providing short-term stays via Airbnb, some home rental agencies are still offering short-term accommodations to tenants by including an early termination clause into their contracts, reported Channel News Asia.

This was discovered when the news agency tried to rent units from two accommodation providers.

In responding to a request for a three-week stay, the first company’s staff said it was “not a problem” provided the tenant will sign the termination form during the end of his or her stay.

The company’s agent said in an email that “as per Singapore rules and regulations, the minimum lease duration in residential developments in Singapore is three months but it could be terminated earlier with no penalty if a notice of termination is sent 30 days before the departure date”.

An early termination notice form was even provided by the company.

The second accommodation provider also granted its request for a short-term stay.

Lawyer Amolat Singh said these companies are skirting the minimum tenancy rule by inserting an exit clause. “So I could enter into such an agreement and say: ‘Sorry, after one week I want to quit,’ and that will be acceptable to them,” he said.

The Urban Redevelopment Authority revealed that around 600 properties were investigated between January and September last year.

It noted that companies providing accommodation services are subject to enforcement action once they are found to have violated the regulations.

In the event of such breaches, owners are primarily responsible, while tenants could also be subject to investigation, added URA.

 

This article was edited by Keshia Faculin.

POST COMMENT

You may also like these articles

Property agents who broker short-term leases may lose licence

Some agents are facilitating short-term rentals due to the sluggish housing market. (Photo: Someformofhuman/Wikimedia Commons) Property agents who violate the rules against short-term leases of res

Continue Reading11 Apr 2016

Condos pass by-laws to curb short-term rentals

The government is considering creating a new building-use category for private homes whose owners wish to offer their property for short-term rent.  In light of the growing number of homes offered

Continue Reading8 Feb 2017

Illegal short-term rentals on the rise, neighbours encouraged to report suspicious activity

View of high-end private apartments in the Orchard Road area.UPDATED: More private property owners in Singapore are renting out their units for illegal short-term stays via apps such as Airbnb.Accordi

Continue Reading2 Aug 2017