Commercial: confirm URA approved use matches your business before you commit
Making your offer (LOI)
Your Letter of Intent sets the rent, term, diplomatic clause and a good-faith deposit (~½ month)
The good-faith deposit is forfeited if you pull out — sign only when you're sure
The LOI is not the tenancy agreement; its terms must match the agreement exactly
The tenancy agreement — read before you sign
Check your names/FIN, the address, start/end dates, rent and due date
Security deposit (1 month per year) and how long after lease-end it's returned (14–30 days)
Diplomatic clause: lets you leave early after 12 months (~2 months' notice) if you leave Singapore or change jobs — ask for it if you might need it
Minor-repairs threshold: know what you pay for vs the landlord
Aircon servicing: is it your responsibility? Quarterly is standard
Without a diplomatic clause, leaving early usually means forfeiting the deposit AND paying the remaining rent — flag if your plans are uncertain
Tenancy stamp duty: 0.4% of the total rent for the lease (e.g. $3,000/mth × 24 months → $72,000 → $288), e-stamped within 14 days — usually the tenant pays
Moving in & during the lease
Inventory list with photos, signed at handover — this protects your deposit
Set up utilities (SP Group) and internet — apply at least 14 days before your move-in date
Condo: book your move with the management office — bulky items usually only during working hours and Saturday morning; confirm the rules and any lift deposit
Service the aircon on schedule if it's your responsibility
At the end: joint inspection; deposit returned within 14–30 days minus any damage beyond fair wear
Will you document the unit's condition well at move-in — photos and notes?
Renting Out Your Property
Before you let it out — eligibility & the numbers
HDB: only Singapore Citizens may sublet the whole flat — PRs cannot, even after MOP
HDB: confirm the 5-year MOP is served; renting rooms only means you must keep living there
Verify the tenant's pass (EP / S Pass / Work Permit / DP / Student / LTVP) — valid, and when does it expire?
Rule of thumb: tenant's income around 3× the monthly rent
Corporate tenant: check the company is active (ACRA) and the signatory has authority
Confirm exactly who will live there — no further subletting without your written consent
HDB with a non-Malaysian foreigner/PR tenant: check the Non-Citizen Quota for your block first
The offer & tenancy agreement
Expect a Letter of Intent (LOI) with a good-faith deposit (~½ month) before the agreement
Don't stamp the LOI — only the tenancy agreement is stamped
Security deposit: 1 month per year of lease (1-yr → 1 month, 2-yr → 2 months)
Diplomatic clause (leases > 12 months): decide if it 'restarts' or 'carries forward' at renewal
Set a minor-repairs threshold (e.g. tenant covers up to $150–$200 per incident)
Aircon servicing clause: quarterly, who pays, and records kept
Tenancy stamp duty is 0.4% of the annual rent, stamped within 14 days — confirm who pays (usually the tenant)
HDB: register the tenancy with HDB within 7 days of move-in
Handover & during the tenancy
Inventory list with photos, signed by both at handover — your best protection on the deposit
Confirm the SP Services (utilities) arrangement
At lease end: joint inspection, then return the deposit within 14–30 days
Deduct only for damage beyond fair wear and tear — not normal ageing
How will you handle repairs and issues during the tenancy — responsive but fair?
Buying a Shophouse, Commercial or Industrial Unit
Start here — own use or investment?
Is this for your own business, or an investment you'll lease out?
Buying in your own name, or through a company/SPV — have you weighed the tax and liability difference?
Are you GST-registered? It changes whether you can claim back GST on the purchase
The money — no ABSD, no CPF, maybe GST
Buyer's Stamp Duty (BSD): 1%/2%/3%/4% then a flat 5% above $1.5m — no ABSD on top
9% GST applies on top of the price if the seller is GST-registered — a GST-registered buyer can typically claim it back as input tax
CPF cannot be used at all — budget cash + loan only
LTV is set by the bank/valuation, not a fixed residential percentage — get your IPA first so your offer is real
Property tax: flat 10% of Annual Value for non-owner-occupied commercial/industrial
Industrial only: is this within the Seller's Stamp Duty holding period? Commercial (office/retail) has none
Use & approvals
Run a formal URA SPACE use-check for the specific unit (~S$53.50) — don't rely on the listing description alone
Industrial (B1): light/clean industrial only — other uses are ancillary (the 60% rule) or need a fresh application
Conservation shophouse: confirm what's protected (façade, structure) and what change-of-use history the unit already carries
Does the unit need URA approval, MCST/landlord consent, AND a trade-specific licence (SFA/Police/MOH/ECDA)? Getting one doesn't mean you have the others
Due diligence
If tenanted: get the tenancy schedule, passing rent and lease expiry (WALE) — not just the asking yield
Compare passing/transacted rent against your own comps, not the seller's projection
Check MCST/service charge, sinking fund health, and any pending special levy
Industrial: confirm floor loading, power supply and access match your intended operation
Leasehold: how many years are left, and does the income/yield you're buying justify that clock?
Offer to completion
Offer to Purchase (OTP) with the same 4pm-deadline mechanics as a home — option 1%, exercise +4%
BSD (+ GST if applicable) payable within 14 days of exercising
Completion typically 8–12 weeks — loan + cash only, no CPF
If GST applies, confirm the invoice/tax-claim timing with your accountant before completion
Leasing Premises for Your Business
Before you view
Check the zone/use tables first — don't fall for a unit before confirming your trade is even allowed there
Map out every licence your trade needs (URA use, MCST/landlord consent, SFA/Police/MOH as relevant) — approval for one doesn't mean the others follow
Budget beyond rent: GST (9%), service charge, fit-out cost, and a reinstatement reserve for when you leave
The Letter of Intent
Good-faith deposit on the LOI converts into your security deposit once the TA is signed
Get the fitting-out period (rent-free or otherwise) written into the LOI — it's a blank on the form; if you don't ask, you get zero
LOI → TA signing deadline is typically 7 days — don't let it lapse
Retail premises (goods/services, lease ≥1 year) must use the separate Code-of-Conduct lease forms — confirm which applies to you
The tenancy agreement
Security deposit: 2–3 months is the commercial norm (vs 1 month/year for homes), plus 1 month advance rental
Rent is quoted per sq ft — confirm whether GST (9%) is included or added on top
Reinstatement: the landlord decides what must be restored to handover condition at exit — budget for it from day one
Licence risk is 100% yours — losing your permit doesn't end the lease and rent keeps running
Any employee without a valid MOM pass on the premises triggers immediate termination and full deposit forfeiture
There is no diplomatic clause in commercial leases — is your business commitment genuinely for the full term?
Make the lease conditional on your use/licence approvals coming through — don't sign unconditionally and hope
Stamping & move-in
Tenancy stamp duty: 0.4% of total rent for the full lease term, e-stamped within 14 days — tenant pays
Photo inventory + handover condition signed by both parties before you fit out
During & exit
Rent unpaid 7 days past due entitles the landlord to terminate and re-enter; interest runs at 10% p.a.
Request renewal in writing ≥2 months before expiry, or lose the right — renewal is at prevailing market rent
At exit, have you budgeted the actual reinstatement cost, not just the deposit you expect back?
Letting Out Your Commercial Unit
Before you list
Confirm the approved use matches what your prospective tenant's trade needs — a mismatch kills the deal at URA SPACE stage
Are you GST-registered? If so, rent must carry 9% GST on top
Be precise about what 'fitted' means if you're marketing it that way — a tenant's expectation and your actual condition need to match
Pricing
Price against transacted psf for comparable units, not just asking rents
What's your real vacancy cost if you hold out for a higher rent versus taking a solid tenant now?
Selling later? A tenanted unit's takeover/assignment terms should be clear from day one
Choosing a tenant
Verify the company is active (ACRA) and the signatory has authority to sign
Confirm the tenant's trade licences are realistic for this unit before you commit — their approval risk becomes your vacancy risk if it falls through
Security deposit: 2–3 months is the commercial norm, plus 1 month advance
The tenancy agreement
Set the reinstatement clause clearly — what must be restored to handover condition at exit
Retail tenant? The Code-of-Conduct lease forms apply instead of the standard TA — and GTO (gross turnover rent) terms if relevant
Fit-out approval process: what the tenant can alter, and what needs your sign-off first
Cash flow
Declare rental income to IRAS; property tax is a flat 10% of Annual Value for non-owner-occupied commercial/industrial
If GST-registered, file GST on the rent collected
Late rent: 7-day trigger to terminate and re-enter; interest accrues at 10% p.a.
Selling a Shophouse, Commercial or Industrial Unit
Start here
Why are you selling now, and what's the minimum number that makes it worthwhile?
Tenanted or vacant possession — which gets you a better price for this asset class?
The money
If you're GST-registered, 9% GST applies on top of the sale price — the buyer may be able to claim it back if they're also registered
Industrial only: check whether you're still within the SSD holding period — commercial (office/retail) has none
Commission is typically plus GST — confirm with your agent
Property tax adjustment to completion date
Preparing the asset
If tenanted: have the full tenancy schedule and passing rent ready — buyers price off documented income, not verbal claims
Confirm the per-level approved use on URA SPACE (~S$53.50) — a buyer will run this anyway; better it's clean before you list
Have MCST/service-charge statements and sinking-fund status ready
Disclose the current fit-out/reinstatement state honestly — it affects the buyer's own reinstatement math
Pricing & evidence
Price against transacted comparables (URA REALIS), not asking prices
If quoting a yield, disclose the basis (gross/net, what it's computed from) — never present it as a forecast
Offer to completion
Offer to Purchase (OTP), same 4pm-deadline mechanics — option 1%, exercise +4%
If tenanted, the sale is subject to the tenancy — the tenant and their deposit transfer to the buyer
If GST applies, confirm invoice timing with your accountant before completion
Completion typically 8–12 weeks from exercise
Questions on any of this?
The “Ask Andrea” items depend on your exact situation. A conversation costs nothing.
General guidance to help you prepare — not financial, legal or tax advice. Every situation has layers (CPF history, loan structure, ABSD position, timelines) best worked through together.
Andrea Goh · PropNex Realty Pte Ltd (Licence No. L3008022J) · CEA R000289H · 9693 7787