Common Rent Increase Mistakes When Renewing Tenancy in Singapore
Many Singapore landlords make preventable errors when increasing rent during tenancy renewal—mistakes that can damage tenant relationships, trigger disputes, or result in prolonged vacancies. Understanding these common pitfalls helps you navigate the renewal process confidently while maintaining the trust-based relationship that Homejourney believes is essential for successful property management.
Singapore's rental market operates without rent control, meaning landlords can increase rent to market rates. However, the lack of regulation doesn't mean there are no consequences for poor renewal practices. In 2025, Singapore's private residential rental growth moderated to 2.5-3%, significantly lower than the 29.7% surge in 2022, reflecting a market where aggressive increases now face real resistance from tenants with more options.
Mistake 1: Not Researching Current Market Rates Before Proposing Increases
The most common error landlords make is proposing rent increases based on assumptions rather than data. Without understanding your property's actual market position, you risk either leaving money on the table or pricing your unit beyond what tenants will accept, leading to extended vacancies.
Why this matters: Vacant units generate zero income. A 30-day vacancy costs more than a modest rent increase forgone. When you propose an unreasonable increase, quality tenants leave, and you face weeks or months of finding replacements.
Before proposing any increase, research comparable properties in your area. Look at similar unit sizes, locations, and amenities. Consider proximity to MRT stations—units near transport hubs command rental premiums, while those in less convenient locations face stiffer competition as HDB supply increases. In 2026, approximately 13,500 HDB flats are projected to reach their five-year minimum occupation period (MOP), significantly expanding rental supply in many towns and putting downward pressure on less conveniently located properties.
Use Property Search " style="color: inherit; text-decoration: none;">Property Search to review current rental listings for comparable properties in your neighborhood. Document the asking prices, unit specifications, and amenities. This research forms the foundation for a defensible increase proposal.
Mistake 2: Ignoring Tenant Tenure and Relationship Value
Long-term, reliable tenants are valuable assets. Landlords frequently overlook the cost of tenant turnover when pursuing maximum rent increases. A tenant who pays on time, maintains the property well, and requires minimal intervention is worth retaining, even if you could theoretically charge more.
The hidden costs of losing a good tenant include:
- Agent commissions (typically 0.5 months' rent)
- Advertising and marketing costs
- Vacancy periods (2-4 weeks average in current market)
- Potential damage assessments and repairs
- Administrative time and effort
- Risk of problematic tenants during screening process
A reliable tenant paying $3,500/month represents significant value. A 10% increase to $3,850 might seem attractive, but if it drives them away, you face $1,750+ in immediate costs plus 2-4 weeks of lost rent. The math often favors modest increases that retain quality tenants.
Consider offering loyal tenants a modest increase (2-3%) rather than pushing for market maximum. This builds goodwill and reduces turnover risk—a core principle of the trust-based approach Homejourney advocates for successful property management.
Mistake 3: Proposing Increases Without Proper Notice or Communication
Singapore has no legal minimum notice period for rent increases (unlike some jurisdictions with 30-60 day requirements), but poor communication creates disputes and damages relationships. Landlords who suddenly announce large increases or give minimal notice often face tenant resistance, complaints, or even disputes.
Best practice timing: Initiate renewal discussions 2-3 months before the lease expires. This allows time for negotiation and gives tenants reasonable notice if they decide to relocate. Abrupt increases with short notice signal disrespect and often trigger defensive responses from tenants.
Present your proposal in writing, clearly explaining the reasons for the increase. Reference market data, increased property costs (maintenance, taxes, insurance), or improvements you've made to the unit. Transparency builds credibility and makes tenants more receptive to reasonable increases.
For HDB rentals specifically, remember that the maximum tenancy period is 2-3 years depending on tenant nationality, and you must reapply to HDB for renewal permission. Factor this administrative timeline into your renewal planning.
Mistake 4: Failing to Document Improvements or Cost Increases
Landlords often propose rent increases without justifying them. While Singapore's market-driven system doesn't require justification, tenants are more likely to accept increases when they understand the reasoning.
Justifiable reasons for increases include:
- Property tax increases or rising insurance premiums
- Maintenance and repair costs (air conditioning servicing, plumbing, painting)
- Rising mortgage interest rates (if property is mortgaged)
- Renovations or upgrades to the unit
- Market rate adjustments reflecting comparable properties
- Inflation and general cost of living increases
Document these costs and improvements. If you've upgraded the air conditioning system, repainted, or replaced fixtures, provide photos and receipts. If property taxes or insurance increased, share the documentation. This transparency demonstrates that your increase is grounded in reality, not arbitrary.
For landlords with mortgages, rising interest rates are a legitimate cost pressure. However, avoid passing 100% of cost increases to tenants immediately—a gradual adjustment over 1-2 renewal cycles is more sustainable and maintains tenant relationships.
Mistake 5: Not Considering Market Headwinds and Tenant Alternatives
In 2026, Singapore's rental market is stabilizing with increasing supply. Private residential rents grew only 2.5-3% in 2025, and analysts expect similar modest growth in 2026. Proposing increases above 5% in this environment risks losing tenants to more competitive alternatives.
The supply dynamics are shifting significantly. In 2026, approximately 7,006 private homes are projected to obtain their temporary occupation permit (TOP)—up from 5,249 in 2025. This expanding supply means tenants have more choices, making aggressive rent increases less sustainable.
Additionally, HDB rental supply is expanding dramatically. The 13,500 HDB flats reaching MOP in 2026 will compete with private rentals, particularly in areas with good MRT connectivity. While premium locations near transport hubs may command higher rents, average properties face competitive pressure.
Before proposing increases, consider your property's competitive position. Is it in a desirable location with strong amenities? Near an MRT station? Or in a less convenient area where supply is increasing? Properties in less convenient locations should expect lower increases or risk vacancy.
Use market data to set realistic expectations. A 3-4% increase aligns with current market trends. Increases above 5% should be justified by specific improvements, exceptional location advantages, or significant cost increases.
Mistake 6: Overlooking Stamp Duty and Lease Documentation
When renewing a lease, landlords sometimes treat it as a simple continuation without considering documentation requirements. This creates legal and financial risks.
Important lease documentation considerations:
- Stamp duty applies to leases of 1 year or longer at 0.4% of annual rent
- A new lease (rather than renewal) may require fresh stamp duty
- Updated terms should be documented in writing
- Security deposit amounts and conditions should be clearly stated
- Utility and maintenance responsibility should be explicit
Consult with a property agent or legal professional about whether your renewal requires a new lease or is a simple continuation. The stamp duty cost is modest (0.4% of annual rent), but failing to properly document the renewal can create disputes later regarding terms, deposit conditions, or tenant obligations.
For HDB rentals, ensure you comply with HDB's subletting rules and reapply for renewal permission within required timelines. HDB violations carry serious consequences, including potential loss of the property.
Mistake 7: Ignoring Tenant Feedback and Market Signals
If your tenant indicates they cannot afford a proposed increase, this is valuable market feedback. Ignoring it and proceeding with the increase often results in vacancy rather than acceptance.
In a moderating market (like Singapore's current rental environment), tenants have more negotiating power. If a reliable tenant resists an increase, consider whether the increase is truly justified or whether you're overestimating the market. A 3% increase accepted by a good tenant is better than a 7% increase that triggers vacancy.
Homejourney's core principle is building trust through transparency and listening to feedback. Apply this same approach to tenant relationships. If renewal discussions reveal tenant concerns about affordability, address them directly. Perhaps a smaller increase with a longer lease term (reducing turnover risk) serves both parties better than a larger increase with higher vacancy risk.
How to Increase Rent Correctly: A Framework
Step 1: Research Market Rates (2-3 months before lease end)
Compare your property to similar units in your area using current rental listings. Document asking prices, unit sizes, amenities, and location advantages. Identify your property's competitive position.
Step 2: Calculate Your Costs
Determine actual cost increases: property taxes, insurance, maintenance, mortgage interest (if applicable). Calculate a percentage increase that reflects these costs plus modest market appreciation (2-4% in current market).
Step 3: Assess Tenant Value
Evaluate your tenant's reliability, maintenance of the property, and payment history. Adjust your increase proposal accordingly—loyal tenants warrant more conservative increases.
Step 4: Initiate Early Discussion
Contact your tenant 2-3 months before lease expiration. Present your proposal in writing with supporting documentation and clear reasoning.
Step 5: Be Prepared to Negotiate
Understand your walk-away point (minimum acceptable increase) and your tenant's likely position. Leave room for discussion and compromise.
Step 6: Document the Renewal
Ensure the renewed lease is properly documented with updated terms, stamp duty paid if required, and clear conditions regarding security deposits and responsibilities.
FAQ: Common Questions About Rent Increases and Tenancy Renewal
What's a reasonable rent increase in Singapore in 2026?
Based on current market data, reasonable increases range from 2-4% for average properties in moderately convenient locations. Properties in premium locations near MRT stations may support 4-5% increases. Increases above 5% should be justified by specific improvements or significant cost increases. The broader market grew only 2.5-3% in 2025, so increases above this range risk tenant resistance.
Can I increase rent without the tenant's agreement?
Yes, Singapore has no rent control. However, if your tenant doesn't accept the increase, they can choose not to renew. You can then seek a new tenant at your proposed rate, but you'll face vacancy costs. It's more practical to propose increases tenants will accept rather than maximize rent at the cost of vacancy.
How much notice should I give for a rent increase?
While no legal minimum exists, best practice is 2-3 months' notice before lease expiration. This allows tenants time to decide whether to accept the increase or find alternative accommodation. Abrupt increases with minimal notice often trigger disputes and damage relationships.
What if my tenant refuses the increase?
You have several options: (1) Accept a lower increase they'll agree to, (2) Allow the lease to expire and seek a new tenant at market rates, or (3) Offer a longer lease term in exchange for accepting the increase. The best choice depends on your tenant's value, market conditions, and your risk tolerance regarding vacancy.
Do I need a written agreement for the renewal?
While not legally required, written agreements are strongly recommended. They prevent misunderstandings about terms, rental amount, deposit conditions, and responsibilities. For leases 1+ years, stamp duty applies (0.4% of annual rent), and proper documentation ensures compliance with tax and legal requirements.
Protecting Your Interests: Documentation and Legal Compliance
Beyond avoiding common mistakes, landlords should ensure proper documentation and compliance. For HDB rentals, understand that you must comply with HDB's subletting rules, including occupancy caps and maximum tenancy periods. Violations can result in fines or loss of the property.
For all rentals, maintain records of: lease agreements, payment history, maintenance receipts, and communication with tenants. This documentation protects you in disputes and demonstrates good faith if issues arise.
If disputes occur, Singapore's Community Mediation Centre offers free mediation services. For claims up to $20,000, the Small Claims Tribunal provides an accessible dispute resolution process. However, prevention through clear communication and fair practices is always preferable.
When navigating renewal, consider consulting with a property agent who understands current market conditions. Agents can provide objective market data, handle negotiations professionally, and ensure proper documentation. connects you with experienced professionals who can guide the renewal process.
Moving Forward: Building Trust Through Fair Rental Practices
The most successful landlords understand that sustainable rental income comes from maintaining good tenant relationships and setting realistic expectations. Avoiding these common mistakes—researching market rates, valuing tenant tenure, communicating early, documenting improvements, and considering market headwinds—positions you for successful renewals.
Singapore's moderating rental market rewards landlords who balance maximizing returns with maintaining reliable tenants. A 3-4% increase on a property with a good tenant is more valuable than a 7% increase that triggers vacancy and turnover costs.
For landlords seeking to understand their property's market position and explore renewal strategies, Property Search " style="color: inherit; text-decoration: none;">Property Search provides comprehensive rental listings and market data. This helps you make informed decisions about your property's rental positioning and renewal strategy.
Homejourney's commitment to user safety and trust extends to landlords as well as tenants. By providing transparent, accurate information about rental practices and market conditions, we help you navigate renewals confidently while building the kind of landlord-tenant relationships that create stable, sustainable rental income.
For comprehensive guidance on the complete renewal process, including detailed cost analysis and negotiation strategies, see our related guide: How to Increase Rent on Tenancy Renewal: SG Cost Guide | Homejourney " style="color: inherit; text-decoration: none;">How to Increase Rent on Tenancy Renewal: SG Cost Guide | Homejourney
