Rently | HDB Renting Out Room Rules: A Comprehensive Guide (2024)

In Singapore, HDB flats form the backbone of the nation's housing landscape. As of 2023, there are approximately 1.13 million of these flats in the market. It’s not only the nation’s backbone, but its whole skeletal system. And that ossified platform, full of calcium and other nutrients essential to the nation's survival, isn’t stagnant – it hasn’t reached maturity. It continues to grow over the years. And this is due to the fact that many homeowners find themselves with extra space. Families grow smaller, kids move out — spaces open up. And renting out rooms can be a great way to generate income and share living space – it's incredibly appealing and in many ways the sector relies on its continuation to face current housing challenges and tribulations. Still, navigating the legalities and finding the perfect tenant isn't simple – it's a pathway full of landmines and pitfalls. This guide is meant to serve as your roadmap. Your compass for renting out rooms in your HDB flat. We'll explore the HDB rent out rules and regulations set, ensuring you stay compliant throughout the process and also delve into valuable tips to optimise your rental experience.

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The Housing Development Board - HDB - in Singapore

Singapore's Housing & Development Board - HDB - is a government agency responsible for providing affordable public housing. Established in 1960, the office played a pivotal role in tackling the nation's early housing shortage. Today, the HDB manages the majority of Singapore's housing estates, with around 80% of the population residing in these high rise apartments. Beyond just building and selling flats, the HDB oversees land reclamation projects, ensures the maintenance of Singapore's public housing infrastructure.

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HDB Renting Rules for Homeowners – the Inside Scoop

Understanding HDB rules on renting out is crucial for homeowners for several reasons:

Compliance

Breaching HDB regulations can lead to penalties and even restrictions on renting your flat. Knowing the rules ensures you avoid legal trouble and maintain good standing with the authorities.

Protects Your Investment

Regulations outline occupancy limits, tenant eligibility, and proper use of the flat. This protects your property from overcrowding, unsuitable tenants, or activities that could damage the flat.

Smoother Rental Experience

Understanding the rules, such as necessary approvals to obtain, tenant screening procedures to follow, and your rights and responsibilities as a landlord, allows landlords and tenants to reduce potential conflicts.

In the following sections, we'll be demystifying HDB's requirements for renting out rooms. By navigating the HDB renting out room rules, you'll ensure your rental experience - as a business - is legal, smooth, and financially rewarding. From eligibility criteria to tenant selection, we'll equip you with the knowledge to make informed decisions and optimize your HDB flat's rental potential.

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The Basics of HDB Room Rentals

Understanding HDB Flats and Room Rentals

HDB flats are government built public housing apartments that form the cornerstone of Singapore's housing landscape. These apartments typically come in various configurations, from 3-room to 5-room units. Homeowners with extra space can choose to rent out individual rooms within their flat, creating a shared living arrangement with their tenants.

Legal Prerequisites for Homeowners

• Flat Eligibility: Flats must be at least a 3-room unit and have reached the Minimum Occupation Period - MOP. This period varies depending on the flat type and purchase scheme/options.
• Approval Process: The HDB must approve before renting out rooms. The application process involves fulfilling specific criteria and submitting necessary documents.
• Occupancy Limits: HDB regulations dictate the maximum number of occupants allowed in a flat to ensure proper living conditions and prevent overcrowding.

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Eligibility Criteria for Homeowners

Here's a breakdown of the key factors to consider when renting a room:

Homeowner Eligibility

• Citizenship: Only Singapore Citizens are allowed to rent out rooms in their HDB flat. Singapore Permanent Residents - PRs - are not currently eligible.
• Minimum Occupation Period - MOP: Applies for those who bought their flat directly from HDB or used CPF housing grants for a resale flat. You must fulfil the MOP, which is typical five years, before renting out any rooms. This ensures you establish a genuine residence in the flat first.
• Flat Size: Only owners of 3 room or larger flats can rent out spare bedrooms.

Restrictions and Conditions

• Number of Tenants: It is based on your flat size and will be outlined in the regulations.
• Approved Use: The rented rooms can only be used for residential purposes. Subletting or using the rooms for commercial activities is strictly prohibited.
• Tenant Eligibility: Need to meet a specific criterion, like nationality, type of pass they hold, and minimum rental period.

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Tenant Eligibility and Requirements

Finding the right tenant is crucial for a straightforward, worry-free, and harmonious rental experience. Here's a breakdown of who can rent a room in your HDB flat, along with their legal obligations:

Eligible Tenants for Renting HDB Rooms

• Singapore Citizens and Permanent Residents - PRs: These individuals can rent rooms in your HDB flat without any additional restrictions.
• Non-Citizens with Valid Passes and Permits: These individuals can also rent HDB rooms but with some limitations. They must hold valid passes with a minimum validity period of at least six months. These passes include Employment Passes, S Passes, Student Passes, Dependant Passes, and Long-Term Social Visit Passes.

Legal Obligations

• Valid Identification: Tenants must provide a valid ID as part of the application process.
• Occupancy Restrictions: They must adhere to the occupancy limits set by HDB for your flat size.
• Proper Use of the Flat: Occupants are obligated to use the rented room solely for residential purposes.
• Compliance with HDB Rules: Tenants need to comply with all HDB regulations.

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Renting Out HDB Room Rules

Here are some key regulations to keep in mind:

Occupancy Limits

The maximum number of occupants allowed in your flat depends on its size:

3-Room Flat: 6 total occupants, including yourself and your tenants.

4-Room or Larger Flat - as of Jan 2024: Subject to change, it was temporarily increased to 8 total occupants due to a particular ruling.

Minimum Tenancy Period

There is a minimum tenancy period of 6 months for each tenant.

Prohibited Activities

• Subletting: You cannot sublet the entire flat or rented room(s) to another person.
• Commercial Activities: Using the rented room(s) for business purposes is not allowed.
• Illegal Activities: Any illegal activity within the flat is strictly prohibited.

Compliance for Peaceful Living

Tenants must comply with HDB regulations and maintain a peaceful living environment. This includes adhering to noise restrictions, waste disposal, and maintaining a clean and hygienic living space.

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Preparing Your HDB Room for Rent

Consider the following before welcoming new tenants to ensure your HDB room meets specific standards:

Guidelines on Room Standards

• Safety: Double check all electrical wiring, smoke detectors, and fire extinguishers are in proper working order. Ensure windows have proper locks for security.
• Hygiene: Give the room a thorough cleaning and address any maintenance issues.
• Furnishings: While furnishing is not mandatory, offering basic furniture like a bed, wardrobe, and a study table can make your room more attractive to potential tenants.

Approvals and Paperwork

• Eligibility Check: Confirm your flat meets the eligibility criteria.
• Application Submission: Submit an online application through HDB e -Services. A fee of $10 per bedroom applies.
• Approval Process: HDB will review your application, assess your tenant's eligibility, and notify the approval electronically.
• Valid Identification: Provide copies of your ID and those of your intended tenants.
• Tenancy Agreement: Prepare a clear tenancy agreement outlining the rental terms, responsibilities of both parties and adherence to HDB regulations.

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HDB — Stick to Its Rules

Stay legal — stay frosty — stay within the bounds. That’s the number one - and perhaps most important - tip we can give you. The ramifications of getting caught in the grey, or worse in the black, when it comes to these issues are staggering. In this article we've explored the legalities and practicalities of renting out rooms in your HDB flat. Of understanding the pros, the cons, and how to actually approach this business opportunity. It’s important to take these rules to heart — why? Because as of 2023 an estimated 77.8% of the resident population in Singapore live in these flats. Annual bookings, with over 21k new ones in 2022 alone, have skyrocketed. And median resale prices are also on the rise due to their appeal. This is a perfect storm - one that a savvy investor can ride and properly harness. By understanding your eligibility, tenant requirements, and occupancy limits, you can navigate the process smoothly, and ride the lightning as well as reap the whirlwind.

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