10 Steps To Renting Out a Condo in Singapore

Last Updated on June 11, 2024 by Editorial Team

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If you’ve been on the fence about whether this is the right time to rent out your condo, the answer is yes. Since 2022, condo rental prices have grown exponentially due to COVID-19 construction delays. There is really no better time than now to make generous passive income out of your private property.


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Never been a landlord and not well-versed with the rental process? Don’t sweat, we’ve put together a 10-step guide to help you rent out your condo with ease.

A 10-Step Guide to Renting Out Your Condo

Step 1 – Check Your Eligibility

Fortunately, renting out private condominiums is less sticky than if you are renting out a HDB flat. However, there are still a few URA rules that you must abide by when leasing your place:

  • The minimum tenancy must be 3 consecutive months or longer. Under the law, landlords of private residential properties are not allowed to offer short-term accommodation on a daily or weekly basis. 
  • Private residential properties smaller than 90 sqm are subject to an occupancy of no more than 6 unrelated persons who are not part of the same family unit.

Until 31 Dec 2026, condo units that are 90 sqm or larger may have an occupancy cap at 8 individuals. Property owners can apply for this extension with Singpass at the URA site.

Step 2  – Understand The Cost of Rental

Understand The Cost of Rental

There are several costs that you must factor in before determining your final rental price. Costs that landlords tend to overlook include:

  • Condo rental agent commission (no fixed commission rates, subject to negotiation between agent and landlord).
  • Stamp duty, which is about 0.4% of the Average Annual Rent (AAR) (payable by the tenant but some landlords might choose to sweeten the deal by covering the cost). 
  • Costs for fulfilling tenant’s requests (for example, costs for new furniture or refurbishing the condo unit)

Step 3 – Determine Your Rental Price

Rental Pricing Formula

This is a formula that is useful for determining your rental price:

Net rental yield = Gross yearly rental / Purchase price of property + Additional costs (inclusive of costs you’ve identified in Step 2)

If mathematical calculation is not your thing, try flipping through property listing sites like Propertyguru or 99.com for guidance. Alternatively, hire condo rental agents who specialise in condo rental to assist you. Their expertise can help you make more informed decisions and reach a larger tenant pool.

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Step 4 – List Your Condo for Rent

If you have an agent, he or she should handle this step without much effort from you. But, if you decide to market your condo without professional help, here’s what you need to do:  

  • Create a compelling ad and list it on property platforms that will reach your target audience.
  • The ad listing should comprise photos of your condo unit, condo amenities and facilities as well as well-scripted marketing copies and information that would appeal to potential tenants.
  • Include information such as distance to nearest public transportation nodes, proximity to the Central Business District (CBD), recreational hot spots and any neighbourhood highlights that would enhance daily living. 


Step 5 – Prep Your Home for Viewings 

Tidy up your home and make it welcoming, clean, cool and well-lit before your potential tenants arrive. This preparation can highlight the positive features of your unit and help your guests easily visualise themselves living in the space.

Also, don’t forget these simple tips that may spruce up your condo without any cost:

  • Remove excess furniture that is not in use.
  • Remove excess or unnecessary ornaments, piles of books and appliances in open spaces.
  • Clean every part of the property. This includes carpets, hidden corners, furniture and windows. 

Step 6 – Conduct Viewing with Your Agent

The viewing session should include a tour of your condo unit and the entire development including facilities, scenic views from the block and in-house residential services that may impress your guests.  

If you decide to appoint condo rental agents, let them conduct the viewing and walk-through of the facilities on your behalf. Professional agents can make your leasing journey effortless and most of them are trained to negotiate better tenancy terms for landlords.

Step 7 – Shortlist the Most Suitable Offer

After a series of viewings, you’ll probably start to receive offers from potential tenants. It is common for tenants to make special requests or add new terms that are over and above what you initially intended.

It is really up to you to sift through the bunch of requests and shortlist the most suitable one based on your cost and preference. However, if the first round of viewings didn’t fetch an ideal offer, don’t rush to settle. Sometimes, it may make more sense to extend your marketing effort.

Step 8 – Collection of Letter of Intent (LOI) and Good Faith Deposit

Finally received an offer you’re waiting for? There are some administrative tasks you need to follow through before the deal is considered sealed:

  • Conduct a background check of the tenant to ascertain his or her financial stability and chances for late or missed rental payments.
  • Collect a Letter of Intent (LOI) with agreed terms and conditions including price, security deposit and other details pertaining to the tenancy.
  • Collect a Good Faith Deposit, typically worth 1 month’s rent for a 1- or 2-year lease. This sum may be converted to a Security Deposit when signing the Tenancy Agreement (TA).

Step 9 – Issue Tenancy Agreement (TA)

Your TA should capture every agreed term and condition between you and the tenant. It should include:

  • The landlord and the tenant’s particulars.
  • The company address of the tenant if he or she is a foreigner.
  • The lease terms including rental price, tenancy duration, start and end date.
  • Security deposit that is equivalent to 1 month’s rental.
  • Termination clause 
  • Any other clauses pertaining to minor repair costs, air-con servicing and tenant’s conduct and house rules

The TA should be signed off by both landlord and tenant with witnesses to authenticate the conclusion of the agreement. Finally, your tenant must obtain a stamp of approval from IRAS on the TA within 14 days of signing it. 

He/she can bring the physical agreement to a Singpost Bureau (at Novena Post, Raffles Place, Shenton Way Post Office or Chinatown) or simply go to IRAS e-stamping portal for endorsement. If the tenant is overseas and they’re signing the TA outside of the country, the TA has to be stamped within 3 days of arriving in Singapore.

Step 10 – Hand Over the Unit

On the day of handing over your condo to your new tenant, be sure to get ready an inventory list indicating all the items in your property. Let your tenant conduct the final inspection and confirm all items are in accordance to the list. Then, hand over the keys and let your tenant move in.

Congratulations! You’ve finally rented out your condo!

Benefits of Engaging a Condo Rental Agent vs Doing It Yourself   

Benefits of Engaging a Condo Rental Agent vs. DIY

Condo Rental Agents Advantages

If you’re a newbie landlord who is unfamiliar with managing the rental processes and doesn’t have time to find your own tenant, working with a professional condo rental agent may offer tremendous advantages. While this means increasing your rental cost, having someone with the expertise to calculate your finances, manage the condo marketing and take care of all the paperwork can ensure a more seamless rental experience.

Alternatively, handling the rental journey on your own can save you heaps of commission which easily amounts to thousands of dollars. By engaging with potential tenants without a middleman, you can better understand their needs and address issues promptly. However, be sure to arm yourself with knowledge in areas such as rental market analysis, lease agreements, tenant screening and legal processes before taking on the task without professional help.

Market Rate of the Rental Agent Commission Fees

According to the Council for Estate Agency (CEA), a statutory board established to administer the regulatory framework for the real estate agency industry, there are no fixed commission rates nor prescribed guidelines on commission amounts for agents assisting in rental transactions. 

The general commission fee in the current rental market is equivalent to 1 month’s rent for a 2-year lease and 0.5 month’s rent for a 1-year or shorter lease. Safe to say that the commission is tabulated based on 0.5 month’s rent for each year of rental. 

FAQ: Renting out Condo

As a condo owner, you may rent out your condo right after purchase. However, do note that short term rental is not allowed. Renting for less than 3 months requires URA approval.

For condo rentals, tenant registration with URA is not necessary, but owners should check with their MCSTs for any by-laws requiring it. For more info check out: URA Registration of Tenants

Renting out Condo in Singapore?​

Get your Free Rental Value Report and Landlord service package.