Written by: Benjienen Toledo
Landlords, prepare yourselves for the changes in the maximum number of tenants who may occupy your HDB flats from 1st May 2018.
Are you an owner of a 4-room or larger HDB rental flat?
In line with Urban Redevelopment Authority (URA’s) cap of six persons rental of private residential properties which are rented out, HDB flat owners renting out their flats or bedrooms to unrelated persons (who are not from the same family unit) will need to adhere to the new occupancy cap of six residents.
If you have nine tenants renting your flat and you need to renew their Tenancy Agreement (TA) after 1 May 2018, you will have to vacate three tenants from your flat by the expiry of the TA because the occupancy cap of nine for rental flats like yours will be reduced to six.
For owners of a 3-room HDB flat with six tenants or owners of a smaller flat with four tenants, it’s good news for you! The maximum number of tenants allowed in your rental flat remains unchanged.
The occupancy cap changes seek to minimise disamenities caused by overcrowding and maintain a conducive living environment for our public housing estates.
So what are the New Occupancy Cap for HDB Flats, Bedrooms and Living Quarters Being Rented Out?
This cap will also apply to all living quarters of commercial properties that are being rented out. The cap will take effect for all new and renewal applications submitted from 1 May 2018.
What happens for example if the TA for your 4-room rental flat was just approved or renewed last 1 April 2018 with nine occupants? That is good news for you because the new occupancy cap does not apply to you. Nine tenants may still stay in your rental flat until the TA expires. However, if the TA for your 4-room rental flat was approved in 1 April with six occupants, you may no longer add new occupants since the occupancy cap has been reached.
What are the other changes in the HDB rental policies?
These changes in HDB approval application will help ensure that the eligibility conditions are met before the tenancy commences. Applications to rent out HDB flats, bedrooms or living quarters of commercial properties may be submitted online via HDB’s e-services.
The outcome of the application will be made known immediately. Also, an administrative fee is payable with each application, at $10 per bedroom or $20 for the whole flat rented out. To apply to rent out living quarters (whole or partial) in commercial properties, the administrative fee is $100 per application.
Sources: HDB, Gov.sg
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- Revised Proximity Housing Grant: Bigger Handouts and Extended Proximity
- Changes in Buyer’s Stamp Duty Rates
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