Landlords encouraged to use checklists and tenancy agreements to safeguard their interests: Forum

We refer to Lim Lay Choo’s letter on strengthening protection for home owners in tenancies (Do more to protect home owners from unscrupulous tenants, Oct 16).

The Council for Estate Agencies (CEA) publishes landlord and tenant checklists for residential rental transactions on our website.

We encourage landlords to go through the checklists with their property agent, if they are engaging one, before signing a tenancy agreement.

CEA’s checklists for renting out private residential property include steps such as verifying the identity of the tenant by checking their Singapore NRIC or work permit/pass (for non-residents) and verifying the company’s Unique Entity Number with ACRA (for corporate tenants). Landlords are advised to remain vigilant, seek clarification where there are uncertainties or concerns, and exercise caution before proceeding with the tenancy.

A tenancy agreement is a legally binding contract. Before signing a tenancy agreement, landlords should negotiate and agree on the terms and conditions of the tenancy with the tenant. The tenancy agreement can cover areas such as the landlord and tenant’s obligations, as well as what happens when a tenant defaults on rental payments, such as whether the landlord has a right of re-entry.

Property agents also have a responsibility to act in their clients’ best interests. Under CEA’s Code of Ethics and Professional Client Care, property agents are required to explain to their client the meaning and consequences of the provisions in the tenancy agreement. Where a matter falls outside an agent’s professional expertise, such as a legal or tax issue, the agent should advise the client to seek appropriate legal or professional advice.

CEA is reviewing the upstream checks that property agents should perform when facilitating rental transactions.

Joseph Kiong
Director, Investigation & Inspection
Council for Estate Agencies

Do more to protect home owners from unscrupulous tenants: Forum

The recent case involving American national Anthony Thomas Price raises serious questions about the protection of home owners in Singapore, particularly elderly landlords (Man uses shell companies to rent landed homes, later defaulting on rent and refusing to move out, Oct 12).

The court’s findings on the conduct involved should prompt a discussion about how such situations can be prevented.

For many home owners, rental income represents their retirement security. Yet, when tenants default on rent and refuse to vacate, landlords may face prolonged legal proceedings, mounting expenses and little prospect of recovering their losses.

Should the Council for Estate Agencies strengthen guidance for property agents acting on behalf of landlords, particularly when facilitating corporate tenancies? Perhaps consider building a blacklist of recalcitrant tenants.

While legitimate businesses should not be prevented from renting residential properties, should additional safeguards be considered when companies with limited financial resources undertake substantial rental commitments? Measures such as appropriate guarantees or enhanced financial disclosures may help reduce the risks.

I hope the authorities will review whether stronger safeguards and more effective enforcement mechanisms are needed.

Lim Lay Choo

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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