5 Costly Rent Increase Mistakes Landlords Make When Renewing | Homejourney

Singapore landlords often lose income by making common errors during rent renewal, such as ignoring market rates or skipping proper notice. This guide reveals the 5 costly rent increase mistakes landlords make when renewing, with actionable steps to protect your investment while complying with local laws.

At Homejourney, we prioritize user safety and trust by verifying market data and connecting you with reliable agents. This cluster article builds on our pillar guide, How to Increase Rent on Tenancy Renewal: Singapore Guide | Homejourney How to Increase Rent on Tenancy Renewal: Singapore Guide | Homejourney , offering tactical advice for rent adjustment success.

Why Rent Renewal Matters in Singapore's Stabilizing Market

Singapore's rental market is stabilizing in 2026, with HDB rents up just 1.4% in 2025 and private rents moderating due to increased supply of 21,000 homes.[3] No rent control exists, so market rate rent drives pricing, but poor renewal strategies lead to vacancies or disputes.[2]

Landlords must balance raise rent ambitions with tenant retention. HDB flats require subletting approval and occupancy quotas, while private properties over 90 sqm can house up to eight unrelated tenants until 2028.[1][2] Use Homejourney's property search to benchmark comparable rentals in your area.

Mistake 1: Ignoring Current Market Rates

The biggest error is basing increases on outdated data, like last year's rent, instead of 2026 comparables. HDB three-room flats saw modest 0.5% monthly growth in late 2025, while city-fringe condos range SGD 600–1,190 per room.[3][4]

Actionable Fix:

Check HDB/URA portals for approved subletting benchmarks.
Compare 3-5 similar units via Homejourney's projects directory Projects .
Aim for 5-10% hikes in stable areas; cap at market to avoid vacancies.

For HDB, exceed rent ceilings at your risk—HDB may scrutinize.[2] This prevents underpricing, which costs landlords thousands annually.

Mistake 2: Skipping Proper Notice Periods

Many landlords demand immediate rental increase without 1-2 months' notice, breaching common law and tenancy norms. This invites Small Claims Tribunal disputes up to SGD 20,000.

Actionable Fix:

Issue written notice 30-60 days before expiry, stating new rent and renewal terms.
Include in original lease: "Rent may increase rent renewal aligned to market rates with 1-month notice."
Document via email or registered post for IRAS tax proof.[2]

Homejourney agents can draft compliant notices—connect at https://www.homejourney.sg/agents.

Mistake 3: Overlooking HDB and URA Compliance

HDB landlords forget re-applying for subletting approval on renewal, risking fines or repossession. Private owners ignore URA registration for higher occupancy.[1][2]

Actionable Fix:

Re-verify HDB quota via e-Services before renewal; tenants must be citizens/PRs.
For private homes ≥90 sqm, register with URA for up to 8 tenants.[1]
Update lease with occupancy limits to minimize neighbor complaints.

Non-compliance voids increases and exposes you to eviction counters. See our HDB Subletting Breaches Guide HDB Subletting Breaches: Fast-Track Eviction Guide | Homejourney .

Mistake 4: Failing to Document Everything

Verbal agreements on rent adjustment fail in disputes. No records mean lost IRAS deductions or tribunal losses.

Actionable Fix:

Sign stamped tenancy agreements (0.4% duty for 1+ year leases).
Photograph property pre/post-renewal; log all communications.
Declare income via IRAS—renewal docs prove periods.[2]

Phased increases (e.g., 3%+3%) with written addendums retain good tenants. Homejourney verifies docs for safety.

Mistake 5: Pushing Too Hard and Losing Good Tenants

Aggressive 20% hikes ignore vacancy costs (1-2 months' rent) in a market with rising MOP flats flooding supply.[3]

Actionable Fix:

Offer incentives: free aircon servicing via Homejourney aircon services Aircon Services .
Negotiate: If tenant balks, phase or add upgrades.
Know your walk-away: List on Homejourney if needed for quality tenants.

Calculate yields with our bank rates tool Bank Rates for investor insights.

Best Practices for Successful Rent Renewal

Screen tenants rigorously, use agents for negotiations, and monitor market via Homejourney. For disputes, use Community Mediation before tribunal. Always consult professionals—this isn't legal advice.

FAQ: Rent Increase Renewal Questions

Q1: How much can I legally raise rent in Singapore?
Singapore has no caps—use market rates. Benchmark via URA/HDB; typical 5-10%.[2]

Q2: What's the notice for rent increase?
1-2 months written notice standard; specify in lease.[2]

Q3: Do HDB renewals need re-approval?
Yes, check quota and reapply via HDB portal.[2]

Q4: What if tenant refuses the increase?
Negotiate or end tenancy legally; avoid self-help eviction.[2]

Q5: How to tax rental increases?
Declare to IRAS with stamped agreements.[2]

Trust Homejourney for verified rentals. Search properties at https://www.homejourney.sg/search?status=For+Rent or connect with agents. Read our pillar guide for full coverage.