I have a case of disputes between Landlord and Tenant when the lease ends. Landlord wants to deduct my client’s (Tenant) security deposit as he complained about the dirty house, air-conditioner leaking, washing machine faulty etc. Luckily, I have always keep a copy of the emails as proof of evidence to protect my Tenant since the day he moved in. House was not cleaned when my client moved in, and all the items were not repaired despite asking the Landlord countless times to take a look and rectify it. In the end, the Landlord lost the case and returned back my client’s security deposit.  Most of the Tenants/Landlords do not know what to do when they meet nasty Landlords/Tenants during the tenancy period. How to protect themselves in the Tenancy Agreement contract. I guess it’s good to share with everyone (Agents, Owners, Investors etc) to protect yourself when you meet an ugly and nasty Landlord/Tenant.

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1. What are the key factors to note when reading through a Tenancy Agreement (TA)?

– No. of occupiers of the tenant. (This is important for expatriates who have families or friends who might come by to visit them frequently) Landlord will have a good idea and control on the number of people staying in the house.

– Subletting. (Most of the Landlords would not allow subletting in order to keep the number of tenants in the house under control. However, some of the Tenants prefer a subletting clause so that they can reduce the burden of the rental. Thus, before signing the Tenancy Agreement (TA) contract, it is best to indicate the intention upfront. If no, Landlord should state clearly the penalties of failure to comply, to ensure transparency and clarity and it will be binding to tenants who fails to comply. If yes, Landlord should state clearly on the maximum number of occupiers in the house , should constantly keep the work permit (EP/SP) updated and also constantly keeping in touch with the main tenant to find out if there are any changes to the sub-tenants staying in the house.

– Expatriate clauses. This will be included in the Tenancy Agreement (TA) for foreigners/expats who are renting a property in Singapore. The clause will only be used provided Tenant is retrenched and has to leave the country, or pre-termination due to loss of jobs or to be transferred to other countries. Tenant would need to write a notice to the Landlord and also to provide documentary evidence.

– Are Pets allowed. Most of the Landlords prefer no pets because the pet might scratch the parquet flooring, furniture etc. In this case, tenants would be responsible and would need to engage contractors to rectify the issue or simply allow deduction from security deposit. If pets are allowed, Landlord should state clearly and take photos of the house before handing over to the new tenant in order to prevent any disputes when the lease ends. Photos (with dates taken) are the best tools to be used as evidence. Tenants should take photos of damaged furniture, flooring etc to protect themselves and write an email/sms to Landlord about these issues before moving in so that there will be evidence to protect themselves when the lease ends.

– What happens when Tenant default payments. Landlord should state clearly the clauses on the outcome when such things happen:

  • Usually the grace period for payment is 7 days but it depends on Landlord’s preference.
  • What is the penalty if it is unpaid for more than 7 days.
  • How much interest can Landlord claim for rent arrears.

– Minor repair clauses. The minor repair clause will only take effect after 30 days, counting from the start date of the Tenancy Agreement contract. If the minor repair cost is more than $200, the initial $200 will still be paid by tenant whilst excess to be borne by landlord. This is an important clause and tenants have the right to negotiate.

– Common problems. Air-conditioners are not cold. Test out the air-conditioners during handover. If it is not cold, highlight the issue on the spot to get the Landlord to rectify the issue before taking over the keys. Likewise for Landlord, check the air-conditioner before taking back the unit when the lease ends.

– In short, be very specific. Some TAs that I’ve noticed over the years of my experience in the real estate industry, was that some contracts can be as short as a single page full of clauses, unclear and messy. There will definitely be problems using the unclear clauses in the contract when Landlord and Tenant face certain issues. It can be time consuming and stress for both Landlord and Tenant if the contract is not clear and specific. Conflicts will most likely occur. A Good TA should be at least minimum 5-7 pages long excluding inventory list.

2. Some important factors to note in certain clauses?

– Are there additional Family Members – Let the Landlord know in advance if Tenant has the intention to let their family members visit them and stay overnight in the premises.  It is a good practice to write/email to inform landlord one month in advance and the duration of the stay. If Landlord is not comfortable, it is better to let the Tenant know upfront before entering the Tenancy Agreement (TA) contract. Otherwise, Landlord can include a clause that only permitted occupants who are registered in the TA are allowed to occupy the premises. (Families/ friends are strictly not allowed)

– Access to premises –  Tenant should allowed Landlord’s contractors/workers’ to access the premises for rectification works / to repair certain repair works. Sometimes, it is very difficult for Tenants to apply leave for the workers to come during the day for repair. These problems can be solved by asking the Tenant’s agent / Landlord’s agent to be present during the rectification works. If Tenants do not allow the workers to access the premises for repair, any major problems occur to the premises will need to be answered by the Tenant as Landlord has tried his best effort to solve the problem but faces resistance from the Tenant.

– Re-entry to Premises – Landlord has the right to re-entry the premises if the tenants do not pay up the rentals after a certain period [as agreed in the Tenancy Agreement (TA) contract], the landlord reserves the right to re-enter the premises to take back their property. It must be indicated to protect Landlord.

– Aircon services contracts – The air-conditioners servicing has to be done by Tenant every quarterly. This is a norm in Singapore unless there is an agreement between the Landlord and Tenant to do otherwise. We as Agents have to re-emphasize to clients that they have to comply with what was stated in the TA. It is a good practice to ensure that Tenants sign up a 2 years servicing package with a reputable airconditioner company if Tenant is staying for a 2 years lease contract. Likewise for a 1 year contract. So that there will not be any disputes when the lease ends and the air-conditioners will be well-maintained. If Tenants prefer not to take up a air-conditioner servicing contract, they would need to keep the quarterly servicing receipts as proof when the lease ends.

– Fair Wear and Tear – This clause is probably the most controversial. What is fair wear and tear? To be honest, this clause can be very grey and subjective. Thus, it is better to state clearly what is Fair Wear and Tear in the contract to prevent any misunderstanding. Some things to note:

  • Floor that is scratched by badly aligned door. Tenant should highlight this issue straight to Landlord so that Landlord can do something about it. Take a video and send to the Landlord as proof that Tenant did not damage the flooring as it is due to the bad alignment of the door. (Not fair wear and tear, Did Tenant make an effort to inform Landlord? As Tenant know that the door has some issues, have Tenant done something to realign/repair the door? The Best practice is to inform your agent/ the Landlord so that they have a record to prevent disputes)
  • No door stopper, causing the door to have light scratches on walls. (Not fair wear and tear, Tenant could’ve sounded out to Landlord for permission to install a door stopper or Tenant can ask the Landlord to install one. Take a video and send the Landlord as proof)
  • Old Sofa has a bit of torn parts (Fair wear and tear. Tenants should not try to damage the sofas further, unless there are children at home, or pets with claws/paws. Always take photo of the torn parts of Sofa when Tenant take over the premises and inform the Landlord as proof)
  • Water Pipes, toilet pipes, House pipes rusty. Due to the weather. (Fair wear and tear)
  • Dining Table Legs and Dining chairs causes scratches on floor (Not fair wear and tear, Tenants should treat a rental home as if it’s their own home. So they should’ve done considerable measures of reasonable care (i.e. place rubber on legs of chairs and tables to prevent scratches. Alternative, they should inform the Landlord about this issue on the Dining and chairs legs that are causing the scratches and take actions to prevent it)

3. Any preventive measures that can be done to prevent deduction of security deposit (SD)?

– TENANTS PLEASE TAKE NOTE:

  • There are 30 days warranty for the electrical appliances in the house when Tenant rent a house in Singapore. If Tenant feels that there are certain appliance not working well during the 30days period, Tenants have the rights to get his agents/Landlord’s agent to inform the Landlord to provide Tenant with a new, or reasonably good working condition appliance. E.g. Air-conditioners, Fridge, water heaters & washing machines are some common problems due to constant break down of the appliances, resulting in stress among tenants.
  • Tenants or their agents or Landlord’s agents, have to observe carefully on the works done by contractors during repair works, to see if there are any damages done to the premises because of their negligence. Some important areas to look out for scratched/damaged walls, floorings, parquet or other electrical appliances that were damaged in the process. Take photographs and video of the damages and report to the Landlord immediately.
  • By doing this, there will be no disputes and Tenants can prove that the damages were done by the workers/contractors and safeguard their security deposit from deduction. This can be used as evidences to claim from these workers and contractors accordingly for their negligence.
  • Please do not drill holes on walls to put up paintings, posters, decorations etc. This is because when the lease ends, Tenants have to patch up the holes and paint the entire walls with the exact same paint colour. Most of the time, due to the colour difference, Tenant would need to paint the whole house and return back to the Landlord. Thus, try to avoid drilling holes in the wall.
  • If Tenants really have to drill holes, please use a 3M hook to hang an artifact or painting during your tenancy, such that it is easier to remove the hook when the lease ends and does not damage the walls.
  • Landlords usually want back the property in a tenantable condition. Therefore, if there are walls with holes/uneven patching or just painting over the patch, these are invalid acceptance and definitely they have the right to deduct from the SD. This is a very common problem which I have always encounter as an Agent. In order to avoid all these disputes, Tenants please do not drill/hammer nails in the wall to hang photos/paintings/artifacts.
  • Handover day:
  • From the start to the end, you may take lots of photos/videos
  • whether there is a small stain on the floor, scratched on parquet, scratched on marble flooring
  • tiny hole in the day/night curtains, tear in the curtains, stain on the curtains
  • scratches seen at the appliances, stains on the appliances
  • Cabinets drawers not working, cabinets hinges coming off
  • Just take as many photos as possible.
  • Use cameras (especially those that can print out the date and time on the pictures preferably), keep one copy for yourself, send to your agents and let the landlord keep a copy as well.
  • Please do not start to move/shift everything at the last minute. Always give ample time at least 2 weeks to move out and reinstate the property back to the original state. Always have at least 2 weeks to rectify the unit. If there is a pre-inspection requested by Landlord, ask the Landlord to see if there are any problems and ask the Landlord to highlight during the pre-inspection so that Tenant can rectify before the handover to prevent any deduction of your Security Deposit.
  • DO NOT cut the utilities during the handover day. Cut off 1 day later so that during the handover day, everyone is able to check if the appliances are in working conditions. Cutting too early will cause more discrepancies, especially if Landlord finds problems after they reactivate it back, your Security deposit will be affected.

– LANDLORDS PLEASE TAKE NOTE:

  • Always ensure that there is clarity in the Tenancy agreements contract. This will prevent any headache/arguments during discrepancies/disputes. Therefore, clauses in the contract has to be explicitly detailed to prevent grey lines, especially towards fair wear and tear matters.
  • Security deposit is the most crucial/sensitive part, as most tenants expects Landlord to return all back, especially for those Tenants who have taken good care of the house, treat the house as it’s own and has a strong responsibility towards taking care of the premises. If Landlord fails to refund the SD within the timeframe as promised in the Tenancy Agreement contract, there is a possibility that Tenant may sue the Landlord. Both parties will be at a losing end as time and resources will be wasted in fighting the case.
  • If Landlord noticed any discrepancies/damage during the takeover at the end of the tenancy, voiced out/highlight the issue on the spot immediately, in the presence of witnesses (i.e. Tenant agents/Landlord agents/Tenants etc).
  • If Tenant has damage items in the house, always ask the tenant if they prefer to engage their own contractor or use the Landlord’s contact and produce the quotations for the tenant accordingly. Always give a timeline/deadline for Tenant to rectify the damaged items and set a penalty if Tenant exceed the deadline. This will help to ensure that the damaged items are repaired before the new Tenant starts to rent the premises.
  • If there are items damaged in the house, Landlord should ask Tenant for their permission whether to deduct from the SD accordingly or whether they prefer to pay privately towards their chosen contractor. This will save a lot of discrepancies.

Hope this can better assist all of you in ways when dealing in tenancy agreements matters and discrepancies. Thank you!