Renting Properties - What to Look Out for

From Financial Literacy Wiki

Renting properties is a required process for foreigners coming to Singapore for work or to retire. Given that you are new to Singapore, what can you do to avoid being duped by property scams? Here are the following precautions you can take.

Seeking a Property Agent

Try to seek agents from reputable companies. This might not be a foolproof way but it lowers your risk significantly. In the case if there is anything wrong with the property agent, there is a company you can look for. Another thing is to check the legitimacy of the property agent by calling the actual company to verify, or you can check out the website of Institute of Estate Agents (ie. Click on central Register Scheme (CRS)) to verify. Do note that the agent's particulars might not be found on the website as membership is not compulsory.

Do not pay cash to the property agents. You should instead pay by cheques or cashier's orders which states the owner's name instead. Insist on this as the property agent can misappropriate the cash.

Signing the Lease

Do your due diligence by checking what are the normal practices of renting in Singapore. Check that the other party, besides the property agent is the real landlord of the place. Ask to see the owner or the owner's property tax statement, together with identifications with photos (ie identity card, passport or driver's licence) to verify ownership.

If you are dealing with managing agents, ask for documentary proof such as power of attorney or letter from the owner authorising the agent to act on his behalf.

Tenants can also negotiate for a lower deposits or terms of payment but subject to landlord's agreement. Tenants should only pay the advance upon handling over the keys.

Do check out the rental rates of surrounding flats through friends or agents to have a feel of the rent you would expect if you are renting a place in the vicinity. If the rent you are offered is too good to be true, it might be wise to walk away from the deal.

Moving In

Preferably check out the place in the presence of the landlords if possible, to check for any defects in the place you are renting. Immediately point out the defects so that they can be settled with the landlords without too much disputes.