What Should You Know About Tenancy Durations?

It is possible to have a tenancy for any duration you desire. Typically a landlord prefers a 24 month (two year) lease which is the most common period within the Singapore market, however many landlords are willing to consider a 12 month (one year) or even six month lease if that is what you require..

So what are the differences between a 24 month, 12 month and 6 month tenancy?

24 Months Tenancy

The reason landlords prefer the 24 month tenancy is that it is the most efficient in terms of their ability to source for a good tenant and to minimize the time the unit would be vacant which of course means lost rental (income).

If you are considering a 24 month tenancy then the landlord would be more willing to consider your requests including:

1. Reduction in asking price
2. Additional furnishings required by you
3. Removal of furnishings not required by you
4. Minor renovations (painting of the walls etc.)
5. Inclusion of a diplomatic clause

It is worth noting that property agents receive a higher commission for securing a 24 month tenancy for a landlord as compared to a 12 month or 6 month tenancy. Therefore it is important that you are comfortable that the property agent is representing your best interests if your requirements are less than the standard of 24 months.

12 Months Tenancy

If a landlord is unable to find a suitable tenant willing to sign for a 24 month tenancy they may be willing to consider a tenant who is only willing to commit to a 12 months tenancy. However if the property you are considering is in high demand then it is highly likely the landlord would prefer to wait for a higher offer or longer duration (24 months).

If you are considering a 12 month tenancy then the landlord would be less likely to consider your requests:

1. Reduction in asking price (difficult, they may even ask for a higher than advertised price due to the shorter duration)
2. Additional furnishings required by you (difficult as the next tenant may not require the furnishings and 12 months is not sufficient time for him to recover the costs fully)
3. Removal of furnishings not required by you (possible but not guaranteed)
4. Minor renovations (unlikely)
5. Inclusion of a diplomatic clause (no)

It is worth noting that property agents receive a higher commission for securing a 24 month tenancy for a landlord as compared to a 12 month or 6 month tenancy. Therefore it is important that you are comfortable that the property agent is representing your best interests if your requirements are less than the standard of 24 months.

6 Months or Less Tenancy

Very occasionally will a landlord be willing to consider a tenancy of 6 month or shorter. Usually this is only when the property has been vacant for an extended period of time 96 months) or is very poor condition (landlord unwilling to spend any money on maintenance / renovation) or the tenant is willing to pay a significant premium above market rental.

It is worth noting that property agents receive a higher commission for securing a 24 month tenancy for a landlord as compared to a 12 month or 6 month tenancy. Therefore it is important that you are comfortable that the property agent is representing your best interests if your requirements are less than the standard of 24 months.

The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide appropriate credit.

End of Tenancy – Checking Out

Your contractual tenancy will come to an end when either you or your landlord has given the appropriate notice, or if you actually move out at the end of the fixed term. Your landlord should advise you of his intentions in writing as per the terms of the Tenancy Agreement for terminating the tenancy at the end of the fixed term, or when instigating any release clause.

Below are a few helpful hints to help you check out smoothly at the end of the tenancy:

• As soon as you receive notification from your landlord that the tenancy will be terminated (this should normally be no less than 2 months notice) you should start looking for somewhere else to live.
• At least 2 weeks before you are due to move, contact the Mail to re-direct your mail. If you are not yet sure what your new address will be you should have your mail re-directed to a family, friend or work address.
• Make a list of all the people you will need to advise of your new address – not forgetting, insurance companies, banks, your employer, credit card companies, doctor, and dentist. To save time, write one letter and photocopy it.
• Make sure you have a copy of the Inventory and Schedule of Condition supplied by your landlord at the beginning of your tenancy. You will need to refer to this throughout the check out process.
• When packing and preparing to leave the property remember to place furniture and other items in the rooms in which they are listed on the   inventory.
• Arrange for the cleaning of the property to begin a couple of days before you leave, and then after all of your belongings have been removed. All carpets should be professionally cleaned. Leave all flooring, linen, curtains, windows, blinds and paint work clean.
• Don’t forget to cancel your Standing Order for the rent, but only do this after your last month’s rent has been paid.
• Advise all utility companies of your moving out date, forwarding address and any meter readings, where applicable.
• If you have any hired or rented items at the property that you are not taking with you ensure that they are returned or collected from the property before you vacate.
• Arrange a convenient time to meet the landlord at the property on your last day so he can be present to ‘check you out’ of the property and give you a receipt for all returned keys.
• Make a note of any last minute meter readings, where relevant.
• Give the landlord your forwarding address in case any mail needs to be sent to you, and for the return of your deposit.
• As per the terms and conditions of the Tenancy Agreement your landlord has approximately 30 days after you vacate the property to return the deposit. Remember, the return of the deposit can be delayed if any work is required as it takes time for contractors to carry out and invoice the work.
• If your landlord has made deductions from your deposit you are entitled to request a breakdown of the charges. Try to keep things as amicable as possible to avoid the situation getting unnecessarily out of hand. 

Keep in mind the possibility that in the future you may need a reference from your landlord. It is best to leave the property as close as possible to the condition in which you found it and give no cause for complaint. The last impression you make on your landlord can often be even more important than the first one!

Source: Houseasia

Homeowners Should Opt for Better Home Insurance

When giving out home loans, all banks in Singapore require the homeowners to take up basic insurance coverage against domestic fire.

This is seen by the lenders as a way to protect themselves rather than the homeowners.

But industry players say homeowners should in fact be encouraged to upgrade to a more comprehensive policy.

Most potential homeowners are just too happy to have their housing loans approved to notice the attached fire insurance policy that comes with all loan documents.

Basic fire insurance is usually given free to borrowers for the first year of the loan, while some banks offer them free for up to five years.

Among other things, it insures the property against damage caused by fire and lightning, and water damage due to bursting or overflowing water tanks.

The need for a fire insurance applies to HDB flats as well.

A check with the Monetary Authority of Singapore shows that there is no legal requirement for borrowers to take up this coverage.

But the Association of Banks in Singapore says lenders insist on it to protect their financial interest should the properties be damaged.

They ask for the sum assured to be sufficient to reinstate the property to its original condition.

So the annual premiums are relatively low ranging from tens of dollars to hundreds of dollars.

The banking association says borrowers can choose an insurer of their own choice, but that could mean higher premiums as banks would usually negotiate for a bulk rate with insurance companies for the benefit of their customers.

The association also advises house-buyers, who would like to protect their investment and contents in the house, to consider a more comprehensive policy.

A check with insurance companies show that with a slightly higher premium, homeowners would be able to get a more comprehensive coverage for their home insurance.

NTUC Income told Channel NewsAsia it currently has some 40,000 home insurance policies in-force.

Its basic coverage also includes theft and burglary, which makes up the bulk of the 260 claims over the past three years. Industry observers say borrowers should be informed of limited coverage under the basic fire insurance and be given the choice for an upgrade to a more comprehensive policy that takes into account the interests of both banks and consumers.

Source: Channel NewsAsia, 11 July 2006

Home Renovation Time Savers

You’d like to remodel your bathroom, redo your kitchen, or add an extra room you can use as a home office. Whatever it is, you’ve got some serious ambitions for your home. But home renovation and construction projects take more time than basic decorating and design projects you can conquer with a DIY weekend. Here are a few tips for finding that time, busy life and all.

If you’re undertaking a home renovation or construction project, you need all the time savers you can get! Let these three tips help you out. 

Plan, Plan, Plan

If you’re one of those types who just can’t wait to get started, you’re going to need to channel that go-get-’em attitude. Eagerly ripping out your cabinets is not the way to start a home renovation project. Sitting down with a notebook is. Plan your budget, prioritize your goals, figure out just what you want your home to look like when you’re done. 

Done right, the time you spend planning your home construction or renovation project should equal or exceed the time it actually takes to execute. Even with your best planning, you’ll still run into snags, but not nearly as many of them. Problems avoided equal time saved! 

Hire a Home Renovation Pro

There’s some satisfaction to be had in doing the work on your home yourself. But having a home renovation project done in six weeks rather than six months is pretty darn satisfying, too. You can hire individual contractors yourself, but the biggest time saver of all is hiring a designer to help you plan the project and to manage the entire construction project. 

Make Home Renovation a Family Affair

The time you spend working on your home renovation can double as great family time. The average parent spends only about 15 minutes a day playing with or working on hobbies with their children. While there are plenty of aspects of home renovation or construction that aren’t kid friendly, plenty are, especially for older children and teenagers. If you can turn some of your home renovation time into quality time with your kids, making time in your schedule gets that much easier. 

Finding time for a serious home construction project can be tough, but with a little finagling, you can make it happen. 

By Dawn West

10 Steps To Presenting Your Living Room

Living rooms are where we feel able to relax and be comfortable. However, when selling your property, you may have to sacrifice some of your creature comforts for image.  

1. Pack away as much clutter as possible – videos you don’t watch regularly, piles of magazines and books, and all those odds and ends you have been meaning to sort out. You will have to pack these away to move, so do it sooner rather than later.  

2. Clean the room thoroughly, from the ceiling down. Have soft furnishings and carpets professionally cleaned.  

3. If necessary, redecorate. Strong colours can alienate potential purchasers. If they do not like your choice they will be counting the cost of redecoration, and that will undermine the value of your property. Choose pale, warm neutral colours, such as cream or off-white.  

4. If your carpet is worn or badly stained, replace it. Do not choose expensive carpet, but make sure that it looks reasonable. If your wooden floors look shabby, have them refurbished, but employ a professional company unless you feel totally confident about your skills  

5. Good lighting is essential in living rooms. Central pendants with lampshades that show the light bulb are ugly and dated. Replace with chandeliers or more modern fittings; at the very least replace the shade with an uplighter. Make sure that you have alternative lighting, such as standard or table lamps, which can be switched on to provide a flattering background light.  

6. Soft furnishings are really important in living rooms because they can add colour and luxury. Cushion covers are easy to make. Choose a beautiful fabric, such as velvet or silk, in a colour that will tone with your decor. Decorate with some braid and tassels for that extra attention to detail.  

7. Dressing a room attractively is important and many people forget the walls. Choose mirrors and suitable pictures and hang them thoughtfully. Large pictures will dominate a small room, dark paintings should be avoided in rooms with little natural light and family photographs should be kept hidden.  

8. If you have a separate dining room, it should be shown as such with table and chairs. However, you need not necessarily lay the table for dinner, as you might see in some show houses. This can look terribly contrived, and potential purchasers may be more interested the quality of your tableware than the attractions of the room. A centrepiece, such as a bowl of fruit or a small arrangement of fresh flowers should suffice.  

9. If you have a separate dining room, it should be shown as such with table and chairs. However, you need not necessarily lay the table for dinner, as you might see in some show houses. This can look terribly contrived, and potential purchasers may be more interested the quality of your tableware than the attractions of the room. A centrepiece, such as a bowl of fruit or a small arrangement of fresh flowers should suffice.  

10. Although it may dominate our lives, the television is an ugly focal point for a living room. Keep it in the background as much as possible and emphasise more attractive aspects, such as a fireplace or a feature piece of furniture.  

By: Daphne Leck

Understanding Singapore Property Tax: Obligations of a Property Owner

1. What is Property Tax? 

Property Tax is a tax on immovable properties (i.e. land and buildings). The tax payable is calculated based on a percentage (Tax Rate) of the Annual Value. 

2. Who is liable for Property Tax? 

All property owners are liable to pay Property Tax. 

 3. Definition of property owners 

Under the Property Tax Act, the person for the time being receiving rent of any premises whether on his account, as an agent/trustee/representative of the legal owner, or the person whose name is entered in the Valuation List, is deemed to be ‘owner’. Usually the ‘owner’ is also the legal owner. 

4. As an owner, is there anything I need to notify IRAS and what if I fail to notify?  

Yes, you should notify IRAS in writing within 15 days from the day:

• your property which has been vacant, is occupied;
• you no longer live in your property;
• you rent out property and charge premium;
• you increase the rent (including furniture rental and service charges) of your property;
• you erect, enlarge, alter, improve, rebuild or demolish your property / part of the building; and
• you apply to develop or subdivide your property. 

Please write to IRAS at 55 Newton Rd, Singapore 307987.  

Failure to give the required notice to IRAS is an offence which on conviction carries a fine not exceeding $5,000 plus 10% interest on the tax payable. The interest payable shall be calculated from the date of expiry of the period during which the notice is to be given. 

5. If I do not receive any notice to pay Property Tax, what should I do? 

If you own a property but have not received any notice from IRAS to pay the Property Tax on your property for more than a year, you have to notify the Chief Assessor.  

Please note that failure to inform IRAS without reasonable excuse is an offence and may be liable on conviction to a fine not exceeding $5,000. 

Source: IRAS

Selecting a Mover

Choosing who is going to move your home is an important decision. This is not the time to be shy. Make sure you fully understand the services each moving company offers and the rate at which the services can be provided.  

Below is a list of questions the experts at TWO MEN AND A TRUCK® suggest asking moving companies to make sure they fit your needs.

• Is the moving company licensed?

• Does the company charge by the piece or by the hour?

• Does the company have a minimum charge? How does the company charge after the minimum is met — in 15-minute increments or every half hour?

• Does the company have any extra charges for larger items or extra flights of stairs? (This is not unusual.)

• Does the company charge for the travel time from their office to your location?

• Does the company charge extra for moves in the evenings or on the weekends?

• What payment options do does the company offer? (Many moving companies require a deposit.)

• Does the company have full-time employees or does the company use temps and day labor? (Be cautious of companies that use temps or day labor because they may not be properly insured.)

• Does the company carry Worker’s Compensation for their employees?

• What kind of training have the movers and drivers completed?

• Are items insured during the move? (Even if a mover is bonded and insured, it doesn’t mean that your items are covered during the move.)

• What kind of cancellation policy does the company offer? (You should always be able to cancel or postpone until a few days before your move.)

• Does the company offer free estimates? (Getting an estimate for all moves is recommended.)

• Does the company offer suggestions on how to make the move easier? (Movers who care about customer service and making your move a positive experience will do all they can to help you.)

• Does the company have a contact number for the day of the move should any challenges arise?

By: TWO MEN AND A TRUCK®

5 Powerful Property Buying Strategies

In a perfect world, it would be easy to always be objective and make rational decisions based on sound information. In reality, emotions and timing often have a big effect. Sometimes the best you can do is to set the stage so that you minimize the subjective influences.  

Give yourself power and control. Don’t find yourself in the position of “having” to buy and doing so in haste.  

1. Work out the finances first. Paying cash? Getting a mortgage? Find out what you can afford and check out all your various options.  

Meet with whatever experts you need to in order to have all your facts – a lender, your tax advisor, etc. Knowing exactly what you want to spend and can spend will eliminate time spent looking at properties you can’t have.  

Not only that, when you find the right property you can make a “clean” offer without a financing contingency. Sellers are more likely to respond favorably to clean offers.  

2. Unless you really want to own two properties, sell first. Then buy. First of all, the property you want will probably not take a contingency offer. So unless you are prepared to own both (and you have to plan for a worst case scenario) you are wasting your time with the offer.  

Second, if you are emotionally attached to what you want to buy you won’t be as objective on selling your home. You may take less than it’s worth so that you don’t lose the other home. There’s nothing wrong with that as long as you understand the financial implications.  

3. Use a realtor who knows the market. That may sound too simple in this age of the internet, when buyers have access to the same data the agent has. The difference is the ability to interpret that data.  

Full-time realtors do more than show homes and write contracts. They study market trends and observe area fluctuations. You are thinking about your needs now. But your agent is thinking about both now and in the future when you are ready to sell again and looking for your future resale opportunities.  

In addition, the internet is an increasingly non-objective source of information. Many websites do not display all the properties that are for sale in a given area because of contractual conflicts. And most new communities are not listed at all in any search vehicle. A professional realtor should be able to show you all the homes that fit your needs.  

4. Wait till your toes curl. In other words, don’t get pressured into making a decision. When you find the right home you will know it (your toes will curl or the little hairs on the back of your neck will stand up).  

That doesn’t mean look at 200 homes before you make a decision. Sometimes it’s the first home you see. But don’t let an agent, a seller, or a spouse, push you into something you don’t feel good about.  

5. You can’t have it all. Decide what is most important in your next home and put it into perspective. If it’s location, or price, or view, or square footage, or school districts, or amenities, or whatever.  

Remember that some things can be changed. Floors, kitchens, landscaping, etc. are all changeable. So if they are not perfect, they can be. But location, view, amenities, etc. are there forever.  

No matter what your budget, the good fairy of real estate did not go – poof! There it is. It simply doesn’t happen.  

Everyone has to make compromises. So decide what truly matters to you and put that at the top of your list. Give in on what doesn’t matter as much.  

Follow these guidelines and you’ll get the home you desire. 

By Crissie Cudd

Determining the Listing Price

Pricing your home is an art not a science. Achieving the optimal prices is the result of both objective research into similar properties and instinct in determining how much a buyer will be willing to pay for your home. The right price will attract showings, which will generate offers.  

The unfortunate fact is that price is the number one factor that most homebuyers use to determine which homes they want to view. It’s also important to remember that although, you and your Realtor, set the asking price, the selling price is determined by the buyer.  

The Correct Price Will:

• Result in a quicker sale, with less inconvenience to the seller
• Expose the property to more buyers
• Increase Realtor response
• Generate more ad calls
• Prevent your listing from getting stale

 

Typically homes that sell more quickly, sell closer to or sometimes over asking price.  

Some Common Reasons for Overpricing

• Over improved property
• Original purchase price too high
• Desire “negotiating room”

 

Overpricing Pitfalls Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and agents. There is a pool of buyers who have seen most available homes in their price range and are now only waiting for new listings or price reductions. A buyer that has been waiting, may fail to see your home if it is priced too high. Sometimes, a price reduction may be too late, as interest by both buyers and Realtors, may have waned.  

Buyers and their agents are very aware of the length of time on the market, the most common question continues to be: “How long has it been on the market?” Often buyers are reluctant to make an offer on a home that has been on the market for “awhile” thinking that there is something wrong with the home. Unfortunately, overpriced listings frequently help you to sell your neighbor’s reasonably priced home, making it appear that their home is priced very well.  

The Role of a Real estate Agent in Pricing Provide you with a comparative market analysis, which is a comparison of recent homes with similar amenities that are available, in escrow and sold. There is no “exact price”; your home is worth what a buyer is willing to pay. The market determines value; together you and your agent determine asking price.  

Realtors have no control over the market, only the marketing plan. The seller determines the asking price. Never select an agent based on price. 

By Phyllis Harb

How to Buy Your First Home….the Easy Way!

Avoid the 9 Most Common, Painful, Frustrating Mistakes 1st-Time Home Buyers Make

Buying a residence can be a hair raising experience. You will experience a roller coaster of emotions while finding the right place, securing the loan and finally moving in. For most of us, the first time home purchase is the largest investment we’ve ever considered. The emotions of purchasing something so expensive and personal can often cloud our business judgment. Most home purchasers do little or no research before they invest their nest egg. Doesn’t it make sense to become as completely informed as possible before you buy your first home? This special report is designed to help you avoid 10 common and crucial mistakes. The right real estate professional can help you make good sound business decisions based on your personal situation.

1. Imagine the Property Vacant – Your furnishings and decorations will be the ones filling this new residence. Don’t be swayed by beautiful furniture; it leaves with the owner.
2. Income + Lifestyle = Loan Payment – Sit down with your professional real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix-ups. Your dream home is certainly worth a sacrifice but don’t mortgage your entire future.
3. View Several Homes – See at least 7-10 properties. Don’t move too slow but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the home market. When you find the right property all the leg work will be worth it.
4. Utilize Your Team – By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your banker, lawyer and agent. Each of them should work hand in hand for your benefit. Explore all the options before you sign.
5. Be Columbo (Kiasu) – Check out all costs and expenses before you sign. Utilities, taxes, insurance, maintenance and home owner dues if applicable. Make sure all utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. Ask lots of questions and be very detail conscious. Don’t take anything for granted.
6. Do a Final Walk-Through – Visit the property after all furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Things that could have been spotted in a final walk-through are often unintentionally overlooked.
7. Plan For Flexibility – Closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
8. If It’s Not In Writing, It Doesn’t Exist – All promises and discussions should be in writing. Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. Have your professional keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
9. Loyalty Breeds Loyalty – Be open, honest and up front with your team. Hard feelings and disloyalty will cause head aches, delays or may even keep you from getting into the home you worked so hard to locate. Take the time to select the right team in the beginning and your first home purchase will be a pleasing and memorable experience.

The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide appropriate credit.