Common Terms & Practices
This specifies how long the duration of the rental agreement will be. In general, it can range from 2 to 3 years.
Rent free period (Fit-out period):
This period is given rent-free to the tenant for renovation purposes of the property. This period is normally given outside of the lease agreement. Duration of this period is dependent on size of the property.
This charge in general is between $0.5 to $1.2 psf. This figured will be reflected in the TA. The service charge is for the general maintenance of the premises by the landlord.
A security deposit of 3 to 6 months is required by most major landlords. The amount of security deposit is dependent on the tenant’s paid-up capital. This is refundable without interest. The landlord reserves the right to deduct costs and expenses payable owning to any breach in contract by tenant.
Some landlords will require a renovation deposit before renovation works are carried out. This deposit is refundable. Do note that this deposit will be called upon to settle damages incurred during renovation by tenant’s contractors.
Stamp fees are required by Singapore Law for every tenancy agreement of singapore property. This amount is payable by the tenant. The formula on how to calculate the stamp fees can be found on IRAS website.
Administrative and Legal fees:
The tenant is required to pay this fee as part of the preparation for the lease documentation. This fee varies from landlord to landlord and in general is not a high amount. Landlords with their own legal department will waive this fee most of the times.
Utilities and Telecommunications:
Tenant will have to set up their own account with the relevant service providers for utilities and telecommunications These expenses are payable by the tenant. If the property rented is using a spilt-unit system or VRV Air-conditioning, then tenant will have to pay for their own air-conditioning as well.
In general, most office buildings with central air-con, operates during office hours.
Weekdays: 8am to 6pm
Weekends: 8am to 1pm
After office hours usage of air-con can be arranged most of the time. The estimated cost would be $40 to $80 per hour.
Car-park lots are dependent on the size of the unit leased. In general, the ratio would be 1 lot per 1000 to 2000 sqft leased. This ratio varies. Car-park lots are also chargeable and are offered according to availability.
Reinstatement of premises:
All tenants are required to return the unit bare upon expiry of the lease. In some cases, the landlord/in-coming tenant may request for the fittings to remain. Reinstatement works will normally take about 2 weeks.