The Renting & Leasing Process:
1. Select an agent
It is your decision if you would like to employ the services of a real estate agent but it is recommended so as to help you look for the property that you like but also to help you in all the small details and paperwork that is included in a transaction such as this.
2. Location and Price
Decide where you would like to search for your home which is convenient for you and your family. Determine what price range you can afford on your budget to pay for the rent of the house.
When you decide on the property to rent, you have to prepare a photocopy of your valid passport and employment pass to establish your identity and status. You also have to give a good faith deposit equivalent to one month’s rental. Your agent will provide for you your Letter of Intent and Tenancy Agreement.
4. Letter of Intent
This is a letter stating your intent to rent or lease the property for a certain period of time. It must contain the following inclusions:
a. Diplomatic Clause
This is just to ensure that you can get your security deposit back after terminating your lease after 12 months in case your employment is terminated before the year is finished or you are transferred to another place. You are allowed to give 2 months notice prior to departure. Landlords usually allow this clause when the lease extends to more than a year.
b. Good faith Deposit
The deposit serves as a reservation fee for the property, which is equivalent to one month rent. It will be part of the security deposit or advance rental after signing the Tenancy agreement.
c. Security Deposit
The amount given as security deposit is equivalent to a month for every year lease which is payable after the signing of the Tenancy Agreement. This is refunded when the lease term ends, without interest. The landlord has the right to deduct all expenses from the tenant for any breach in the contract conditions stated in the Tenancy Agreement.
d. Term of Lease
The standard period to lease out a property is more than a year, which may include the option of renewing the lease. Renewal of lease can be up to 2 years. If a renewal is intended, you have to give at least 3 months notice of your intention. Most landlords do not accept leases that are less than a year.
e. Your Requirements
Make sure that you include all your requirements and requests on your letter. You can demand your request once the l letter of intent is signed by the landlord.
5. Tenancy Agreement
When the letter of intent is signed by both parties, the Tenancy Agreement will be prepared by the landlord’s agent. Any legal fees from the agreement are shouldered by the tenant. But if the landlord’s terms and agreement is acceptable, there are no legal fees that are needed to be paid. You will be paying the rest of the security deposit and advance rental after the signing of the Tenancy Agreement. A month’s advance rental is required plus a month’s deposit depending on the number of years for lease.
6. Taking Over the Property
An inventory list will be prepared by the landlord before handing the property over. Review the list and check the items listed if it is in good working condition. If you have any questions, note it down on the inventory for the landlord to do something about it.
Tel: (+65) 91002985
Fax: (+65) 64021826
CEA Registration Number : R021232Z