Reduced Number of Tenants Allowed in Private Properties

As part of the Planning Bill, a new rule regarding tenancy in private properties was passed in Parliament this week and announced by the Urban Redevelopment Authority (URA) in a letter that was sent to multiple real estate agencies.

There will be a reduction in the number of tenants allowed in private properties from 8 to 6 persons. The new rule will be effective from 15 May 2017 onwards but existing tenancy agreements are given an extended 2 years’ run under the previous rule and will only be required to adhere to the new rule on 15 May 2019. Landlords are expected to act in accordance to the rule and those who fail to do so will face investigation by the URA.

IMPLICATIONS OF THE NEW RULE TO BUSINESSES

Mr Ku Swee Yong, Chief Executive of International Property Advisor, said that this new rule will affect small and medium businesses that currently rent out apartments for their foreign workers as they will now have to look into providing additional accommodation to house these workers. This will lead to increased cost for these businesses.