What to know before signing a tenancy agreement

Not all tenancy agreements (TAs) are created equal. Here are a few things to watch for before signing one so you can protect your interests.

The Council for Estate Agents (CEA) has templates you can use to see what a typical TA looks like. However, real estate agencies have their templates, which might be a little different from the CEA’s. It pays to compare each clause to see how the TA presented to you differs from the CEA’s.
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Here’s what we would look at. 

​Minor repair clause (MRC)

Notice that CEA’s template has left out the amount. Typically, the amount is between $120 to $300, depending on the size and condition of the property. Higher end properties with better grade fixtures and fittings might cost more to maintain.

Watch out for this:
Some MRCs differentiate between the call-out or transport charge from the repair cost. You are asked to bear this cost on top of the actual repair cost. 

​In this example, your minor repair amount is $350 (on the high side BTW) and the automatic gate is not working well. According to the agent/landlord, you are to get the contractor down to inspect and determine the cause of the problem. They quote you $60 for the call-out.

The contractor arrives and proposes to fix the wiring for $400. You need the landlord’s approval since this amount is more than $350.  The contractor said he can come back on another day after you get the landlord’s approval.
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You then ask the landlord for approval and they agree. The contractor comes back to fix it and you get a total bill of $520, which breaks down like this:

• $60 – first call-out
• $60 -second call-out + $400 actual repair cost

​Because your TA specifies that the MRC excludes call-out/transport charges, the landlord only pays $50.

Is this allowed? It is if you’ve signed the TA that has this amended MRC.

Consider this: Include a service level agreement in this clause. Some agents/landlords start taking their own sweet time to respond to your queries or getting the repairman in as soon as you move in. If you can get a service level agreement in where you specify how long they can take to respond to you or fix things, you should do it.
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Some landlords take months to fix the list of things you’ve specified that need fixing during the warranty period, depriving you peaceful enjoyment of the property. 

​Viewing of property

The typical TA states that you as the tenant is to allow the agent/landlord access to the property 2 months prior to the end of the lease to hold viewings with potential renters, with a minimum of 48 hours’ notice.
Some TAs call for 3 months. You need to decide if this is fair or acceptable to you. 

​Problem-free period

One of the most important things to do after moving in is to come up with a property condition report as the tenant detailing the current faults and conditions of the fixtures and fittings.
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This is typically 30 days. But if you are moving into an old house, it might be worth trying to prolong this period in the TA. It takes a while for some problems to surface, such as old aircon units, automatic gates, cookers/ovens, etc.

​Where is your landlord based?

This might seem like an inconsequential question, until you receive a letter from IRAS telling, not asking, you to pay the property tax of the property you’re currently renting.

Because your landlord is based overseas, they cannot claim property tax the way they usually do from a local landlord. They will suggest that instead of paying that month’s rent in full, you pay the IRAS bill in full and partial rent.

But my TA says I have to pay rent on time in full always, you say. What if you’re deemed in breach of contract by the landlord?
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Mixing in slow responses from the agent/landlord and your enquiry with IRAS, you could be experiencing anxiety for days or weeks, trying to determine if you’ve run afoul of the law.

​BONUS TIP:
Some landlords continue to have their official mailing address in ICA listed as the property you are renting. This matters more than you think.

When the government issues CDC vouchers or other benefits for residents, they are sometimes disbursed based on “household”.

Your landlord may claim this benefit for your “household”, preventing you from claiming it.

There is no law against this action and you can try to appeal to your CDC or that disbursing organization, but if you can prevent this from happening in the first place, you should.
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What should you do? Ask the agent if the landlord is doing this currently and negotiate. If there’s a need to, add it inside the TA as a separate clause.