The Extension of Tenancy Agreement in Singapore: A Guide for Homeowners and Renters
As a homeowner or renter in Singapore, you may be familiar with the process of signing a tenancy agreement. A tenancy agreement is a legal contract that outlines the terms and conditions of a rental arrangement between landlords and tenants. It typically includes details such as the duration of the lease, rent payments, and other responsibilities and obligations of both parties.
However, what happens when the initial lease term is about to expire, and you want to continue renting the property? This is where the extension of tenancy agreement comes in.
What is an Extension of Tenancy Agreement?
An extension of tenancy agreement is a legal document that allows you to extend the rental term of a property beyond the initial lease period. It is a simple process that can be done by both landlords and tenants, and it is a common practice in Singapore`s rental market.
Why Extend Your Tenancy Agreement?
There are several reasons why you might want to extend your tenancy agreement. For tenants, a rental property may have become their home, and they may want to continue living in it. It could also be because of practical reasons such as proximity to work, school, or family. For landlords, extending a tenancy agreement can provide steady rental income and avoid the hassle of finding new tenants.
How to Extend Your Tenancy Agreement
To extend your tenancy agreement, both landlords and tenants need to agree on the new lease terms and sign a new contract. The process typically involves the following steps:
1. Discussions and negotiations: Both landlords and tenants should discuss and agree on the new lease terms, such as the rental amount, lease term, and other clauses such as renewal options, termination clauses, and maintenance responsibilities.
2. Drafting the agreement: Once the terms have been agreed upon, the new lease agreement needs to be drafted and signed by both parties. As with any legal document, it is essential to review and understand the terms and conditions before signing.
3. Stamp Duty: In Singapore, any tenancy agreement requires stamping with the Inland Revenue Authority of Singapore (IRAS). Stamp duty is usually payable by the tenant within 14 days from the start of the new tenancy agreement. The stamp duty is calculated based on the rental amount, duration of the lease, and type of property.
4. Registration with the Urban Redevelopment Authority (URA): The URA requires all tenancy agreements in Singapore to be registered with them. This can be done online or in-person. The fee for URA registration is $4.65.
Extending your tenancy agreement in Singapore is a straightforward process that provides both landlords and tenants with a sense of stability and security. However, it is crucial to ensure that both parties agree on the new terms and conditions before signing the new agreement. As with any legal document, take time to review the terms and conditions carefully and seek legal advice if necessary.