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When HDB wonder?
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When an HDB owner decides to rent out their entire flat, there are several administrative and financial steps they must take:
Approval from HDB
The owner must obtain approval from HDB before renting out the flat. This involves submitting an application and ensuring that all tenants meet HDB's eligibility criteria.
Tenancy Agreement
A written tenancy agreement must be drawn up, outlining the terms and conditions of the rental, including the rent, lease period, and responsibilities of both the landlord and the tenant.
Stamp Duty
The owner needs to pay stamp duty on the tenancy agreement. The stamp duty rate is typically 0.4% of the total rent for the lease period if the lease is 4 years or less.
Tax Obligations
The owner must report the rental income to the Inland Revenue Authority of Singapore (IRAS) and pay income tax on it.
Tenant Management
Ensure that only authorised tenants are staying in the flat, and the number of tenants does not exceed the maximum allowed. The tenants must use the flat for residential purposes only and comply with all the covenants in the lease.
Additional Responsibilities
If the owner is staying overseas during the rental period, they must appoint an attorney to manage the flat on their behalf. The owner is also responsible for any infringements committed by the tenants.
For more detailed information and to manage your HDB rental effectively, you can use the resources and tools available on EdgeProp Singapore.
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