A 3 month minimum rental period for private homes

It has been confirmed and finally announced formally by the Urban Redevelopment Authority (URA) that the minimum rental period would be made shorter from six months to three months. This statement was formally announced on the 30th of June 2017 in a press release.

 

This this decision has been declared by the Urban Redevelopment Authority (URA) due to a rapid increase in demand by groups and individuals looking for accommodation for very short periods which ranges from three to six months. Students who visit local institutes, professionals on working projects, academics are some other common parties who are included to join in these short term stay in Singapore.

There was a rule established in 2009 over the minimum stay duration rule which is six months.

These groups and individuals who visit the nation for the above mention reasons further went on to state that, they prefer to stay in a private resident property rather than a hotel or short stay guest houses. It is more convenient and beneficial for them to stay in a private home which provides easy access for transportation, there very own choice of location, financially affordable and many more benefits that they gain.

 

A survey which was conducted in 2015 about the short term stay hosted by public consultation was able to show that majority of people who responded of this criteria were supportive towards the minimum stay duration reduction which was stated by the Urban Redevelopment Authority (URA).

 

The URA further went on to mention that a minimum stay of three months would be a sufficiently appropriate limit which would not create an impact or hinder the residential communities.

 

Though the authority has given their green lights on the 3 months minimum rental period, short term accommodations listed in portals such as Airbnb that are less than 3 months are still not allowed

 

Impact on market

Mr. Nicholas Mark who is the head of research and consultancy of SLP international, mentioned that the impact on minimizing the duration of stay in private residential properties rental market will be minimal.

 

It’s because some landlords have already started to lease out their very own residential units to number of tenants who are staying for short periods of less than 6 to 7 months even prior to the announcement of the new rule being imposed.

 

This is definitely a great news for property owners who are looking to rent out their units fast. However, on the flip side, landlords who are not willing to rent their units out for a shorter lease might face more competitions from landlords that are willing to compromise.

 

 

 

 

The changes on 3 months rental stay of private condos/apartments is reflected in the URA website. Check it out from the link below

https://www.ura.gov.sg/uol/buy-property/about/leasing/residential.aspx

 

Learn more about news from link below

http://www.channelnewsasia.com/news/singapore/minimum-rental-period-for-private-homes-cut-to-3-months-8991156

 

 

 

 

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