Teaser Pic - Finger pointing at cartoon house

New law for occupancy took effect on May 15, 2017.  The unrelated tenants total head count is modified, it is limited to six, because this what takes place if bureaucracy is demented with reason.This is how it could blow the landlords:

Prior to this new policy, landlords are allowed to have a maximum of eight unrelated tenants  but with the new policy effective May 15, 2017, the maximum is change to six only. If in case the related persons occupying the property total to six then extending for tenants is no longer permitted, irrespective of the size area of the involved property. A 5,000-square foot home, with a huge living, has the same occupancy restrictions as a 1,400-square foot apartment.

The Urban Redevelopment Authority explained, “We have simplified the control for greater clarity to the public by not adopting a stratified occupancy cap control based on unit sizes.”

Imagine, having a system as complicated as one tenant for every X square feet. It calls for one to be some kind of nuclear physicist to accomplish it out.

The URA added the change is to guarantee residential units are “consistent with the character of the local community and integrate better with the neighbourhood.”

And we are all aware, six tenants are great but when a seventh joins in, expect each to have an urge to act differently, fight with neighbors and hosting a noisy parties.The prevailing restriction is up to eight occupants, and notice how many of the neighbourhoods turned wastelands due to it. The tenancy agreements done before May 15.

How will it impact landlords?

This somehow affects the landlords in the following ways:

  • Holders of big properties loses out.
  • The Landlords will lose the chance to hit a specific demographics.
  • The holder of four –room or larger HDB properties in less advantage now.


Proprietors of bigger properties will lose out

If you own a vast of private property, condition your mind that some of your property would remain vacant.  Like what was being said, it does not make any difference of owning 1,500 square feet or 4,000 square feet, policy of six tenants prevail.

It is likely assured that some landlords will increase or try to increase rental rates to catch up the difference. This is a big challenge in the existing rental market nonetheless, we are positive it will recover eventually.

Landlords will lose the motivation to hit specific demographics

Landlords who goes in bulk (bigger number of occupants) inclined to hit foreign workers and students. However with the newly implemented policy, landlords have no choice but to go for other option, that is targeting family units.

This is the major objective of the recent occupancy policy- if the landlords rent out to families rather of those students and foreign national workers, there is a tendency for a reduce disturbance in residential neighbourhoods, says a bias opinions.
Apart from the comfort it offers to the neighbors, they will have the chance to enjoy seeing people around while having a great time in an international port.

Owners of four-room or bigger HDB properties are gaining a bit now. If you own a four-room or larger flat, you have that privilege of having up to nine occupants.  Because mostly the danger of having too many tenants, they might spoil the peace which the private property give high significance. This is the advantage of lucky people owning a rent out of five -room flat.

Some business owners have more reason to be unsatisfied and worried over the landlords. Business owners who have foreign worker occupants are unsatisfied with the flow of their business. For instance, they have eight workers in a rental unit, they will break them when the lease lapses. Onwards, they need to rent two distinct properties rather, which means a costly operating expenses.