What is a 'common room' in Singapore?—10 Common Rental Jargons in Singapore You Must Know
Renting in Singapore has its own language.
Are you planning to move into a new rental property in Singapore? Before you get too excited and sign that lease agreement, it’s important that you take some time to familiarise yourself with the different jargon used by landlords and property agents. After all, with Singapore’s high rental rates, it’s best to know what you’re getting. Sure, a lot of these terms might as well be a foreign language—but don’t worry, we’re here to help! In this post, we’ll be exploring a few of the most common rental jargon used in Singapore.
Common Rental Jargons in Singapore You Must Know
1. Good Faith Deposit
A good faith deposit is a small amount of money that the tenant pays to the landlord to demonstrate their genuine interest in renting the property. It signifies the tenant’s commitment and is usually refundable if the tenancy agreement is not finalised. This deposit is a way for the landlord to gauge the tenant’s seriousness and potentially hold the property for them until the formal agreement is signed.
2. Letter of Intent
A Letter of Intent (LOI) is a document expressing the tenant’s intention to rent the property. It outlines proposed terms and conditions, including the rental price, lease period, and any special requests. While not legally binding, it’s a common practice that serves as a basis for negotiations and shows the tenant’s seriousness in securing the rental. The LOI is often used as a precursor to the formal tenancy agreement and helps both parties establish mutual understanding before proceeding with the rental process.
3. Diplomatic Clause
The diplomatic clause isn’t compulsory, per se. It provides flexibility to tenants on fixed-term leases who may need to terminate the tenancy prematurely due to specific circumstances, such as job relocation or early termination of employment.
That’s why the diplomatic clause is usually only applicable to expats living in Singapore. It allows for the termination of the lease without penalties, though it’s usually subject to certain conditions and notice periods. This clause recognizes that unexpected events can occur and provides a safeguard for tenants facing such situations.
4. Security Deposit
The security deposit is a sum of money paid by the tenant to the landlord as a form of security against damages or unpaid rent. It is typically refundable at the end of the tenancy after deducting any outstanding obligations. The refundable security deposit is a protection for the landlord, ensuring the coverage of any potential damages or unpaid rent.
The amount usually depends on the length of the lease. A one-year lease often commands a one-month deposit, while a two-year lease commands a two-month deposit. Most of the time, it’s taken from the good faith deposit, along with a top-up of the remaining amount (if there’s any).
5. Partially Furnished vs. Fully Furnished
The security deposit is a sum of money paid by the tenant to the landlord as a form of security against damages or unpaid rent. It is typically refundable at the end of the tenancy after deducting any outstanding obligations. The refundable security deposit is a protection for the landlord, ensuring the coverage of any potential damages or unpaid rent.
The amount usually depends on the length of the lease. A one-year lease often commands a one-month deposit, while a two-year lease commands a two-month deposit. Most of the time, it’s taken from the good faith deposit, along with a top-up of the remaining amount (if there’s any).
6. Inventory List
An inventory list is a detailed record of the property’s condition and contents at the start of the tenancy. It helps the tenant and the landlord document any existing damages or missing items, minimising disputes during the move-out inspection. It is important for both parties to review and agree upon the inventory list to ensure a fair assessment of the property’s condition. Most of the time, the property agent will go through the inventory list with you before you move into your Singapore condo rental.
7. What is a Common Room?
What is a ‘common room’ in Singapore? In Singapore, a ‘common room’ typically refers to a bedroom in a shared accommodation, such as an HDB flat or a private apartment. Usually shared by multiple tenants, it is an affordable housing option where tenants have their individual sleeping areas within the same room. Common rooms are usually found in Singapore apartment rentals where tenants are looking to split the rental costs and live in a communal setting.
In a common room setup, each tenant will have their designated space within the apartment unit, which may include a bed, wardrobe, and sometimes a study desk. The common areas such as the living room, kitchen, and bathroom are shared among all tenants in the property.
Choosing a common room can be a cost-effective option for individuals who prefer a more budget-friendly rental arrangement or enjoy the social aspect of living with other tenants. It provides an opportunity to interact and share living spaces while dividing the rental expenses among multiple occupants, much like a co-living space.
8. Master Room
A master room typically refers to the largest and most well-appointed bedroom in a Singapore apartment rental. It often comes with an attached private bathroom and may command a higher rental price. Master rooms provide additional privacy and exclusivity for tenants who prefer a more spacious and luxurious living space.
9. Privacy Access
Understanding the terms regarding privacy and access is crucial. This includes knowing the extent to which the landlord or other tenants may have access to your rented space and the obligations to maintain your privacy.
Most of the time, landlords have to get the tenant’s permission before going into private properties. But there are exceptions where the landlord can still enter the house when the tenant is home. Clarifying the privacy and access terms ensures that both the tenant’s rights and the landlord’s responsibilities are respected. So do make sure to double-check your rental contract about this clause, lest your landlord shows up unannounced.
10. Stamp Duty
Think of it as a service charge from the government. Stamp duty is a tax imposed by the Singaporean government on rental agreements. It is payable by both the tenant and the landlord and is calculated based on the rental amount and lease duration. Understanding the stamp duty obligations helps you plan your budget accordingly. It is important to be aware of the stamp duty requirements to ensure compliance with the law and avoid any potential penalties.
Final Thoughts
As shopping for apartment rental in Singapore is always confusing due to the large amount of jargons, we hope this guide has helped break it down for you and provides an easy reference to the common rental jargons in Singapore. Additionally, with all these in mind, try considering other elements like the budget, location and amenities you require before making your decision. All this work will be worthwhile once you find the perfect match! With this newfound knowledge of local rental terms, we’re sure you’ll ace your apartment search.
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