How to apply/renew HDB rental?

01 Jun 2024 Guide

This is a DIY guide on how you can rent out your HDB, without using a property agent. The process is similar for renewal – you have to repeat all the steps, less finding new tenant.

One of the most important resource is the Tenancy Agreement. CEA provided a standard lengthy template for renting out the whole flat, which covers every detail. As for renting of bedrooms, this is our own template.

The steps

  1. Check eligibility
  2. Post on Carousell, Gumtree, Ohmyhome, etc
  3. Get HDB Approval ($18 for whole flat, or $9 per bedroom)
  4. Sign Tenancy Agreement & collect deposit
  5. Pay stamp duty to IRAS (guide)
  6. Move in & inventory list
  7. Re-contract (repeat step 3-5)

It’s quite easy, as long as you know these steps.

There are 2 authorities in the process: HDB for approval and IRAS for pay stamp duty. You must paying the stamp duty WITHIN 14 days of signing the Tenancy Agreement, or else there will be a minimum of $10 fine.

Do you need an agent?

The market commission rate for an agent is 1 month rental for 2 years contract (half month for 1 year). It is usually payable by the landlord, but can be by the tenant too. If represented by an agent on each side, they need to share (co-broke) the commission.

The value of an agent is having the access to post on property portals such as propertyguru, because non-agent cannot post on the portal. This means much more exposure. For landlord, this might be necessary.

But for tenants, you can browse on propertyguru/others and contact the agent directly. There is less value to engage an agent, unless you need more advise.

A property agent role is to match-make landlord & tenant. After signing the Tenancy Agreement, they have no more responsibility. But most of the time, the agent(s) will assist in all matters that arise during the lease, as an after-service.

This is out of goodwill, so as to maintain a good relationship, especially when it comes to renewal.

How to do renewal?

When it is time for lease renewal, there is ZERO OBLIGATION to use back the agent.

If you can handle the paper work yourself (see the step 3-5), you can save on the commission fees 😁