How to Increase Rent When Renewing Tenancy: Singapore Landlord's FAQ
Singapore's rental market operates on free-market principles with no government rent controls, meaning landlords can negotiate rent increases during tenancy renewal based on market conditions. However, successful rent increases require understanding current market rates, proper timing, and fair negotiation strategies to retain quality tenants while maximizing returns on your investment property.
This FAQ addresses the most common questions landlords and property investors face when increasing rent during lease renewal, providing actionable guidance grounded in Singapore's rental market realities and legal framework.
Understanding Singapore's Rental Market in 2026
Before proposing a rent increase, it's essential to understand current market conditions. Singapore's rental market has stabilized significantly in 2026 compared to the dramatic increases of 2022-2023. Private residential rents grew by only 2.5-3% in 2025, substantially lower than the 29.7% surge in 2022 and 8.7% in 2023. HDB rents increased by approximately 1.4% in 2025, down from 3.7% in 2024.
This moderation reflects rising housing supply entering the market, increased competition among landlords for tenants, and cautious hiring outlooks affecting tenant demand. For HDB properties specifically, approximately 13,500 flats are projected to reach their Minimum Occupation Period (MOP) in 2026, significantly expanding the rental pool and intensifying landlord competition, particularly in less convenient locations.
Understanding these market dynamics is crucial for setting realistic rent increase expectations. Landlords proposing increases substantially above market rates risk losing tenants to more competitively priced alternatives on Homejourney's Property Search rental listings.
FAQ: Rent Increases During Tenancy Renewal
1. What's a Fair Rent Increase When Renewing a Lease?
A fair rent increase typically aligns with current market growth rates. Based on 2026 market data, reasonable increases range from 1-3% for HDB properties and 2-3% for private residential units. However, "fair" depends on several factors including property location, amenities, condition, tenant tenure, and local market dynamics.
Properties near MRT stations, commercial hubs, or with premium amenities can command higher increases. Conversely, properties in less convenient locations or with maintenance issues should expect modest increases or potential tenant resistance. Research comparable rental listings on Homejourney before proposing increases to ensure your asking price aligns with market reality.
Increases exceeding 5-8% annually risk losing quality tenants, creating vacancy costs that often exceed the additional rental income. The cost of finding replacement tenants, potential vacancy periods, and agent commissions typically outweigh aggressive pricing strategies.
2. How Should I Research Current Market Rental Rates?
Effective market research requires examining comparable properties in your area. Start by reviewing similar units on Homejourney's Property Search platform, filtering by property type, size, location, and amenities. Document 5-10 comparable listings to establish a realistic market range for your property.
Consider these research factors: property age and condition, proximity to MRT stations and amenities, unit size and layout, included amenities (parking, gym, pool), and tenant profile (local vs. expat, family vs. individual). Properties within walking distance of MRT stations typically command 10-15% rental premiums compared to similar units in less accessible locations.
For HDB rentals, note that newly MOP-eligible flats in well-located areas like SkyOasis@Dawson or Kallang Residences near MRT stations may command rental premiums, while similar units in less convenient locations face increased competition from the expanding MOP supply.
3. When Should I Initiate Rent Increase Discussions With My Tenant?
Initiate renewal discussions 2-3 months before your lease expires. This timeline provides sufficient notice for tenants to consider options while allowing you to adjust strategy if they decline your proposed increase. Early discussions demonstrate professionalism and respect for your tenant's decision-making process, increasing likelihood of successful renewal at your proposed rate.
Avoid surprising tenants with substantial increases close to lease expiration, as this forces rushed decisions and increases likelihood of tenant departure. Professional landlords approach renewal as a negotiation, not a demand, recognizing that retaining a quality tenant often provides better long-term returns than aggressive pricing that triggers turnover.
4. What Factors Justify Higher Rent Increases?
Several legitimate factors support above-market increases: significant property improvements (renovations, new appliances, upgraded fixtures), enhanced amenities or services, substantial increases in your ownership costs (mortgage interest rate increases, property tax increases, maintenance costs), and exceptional property features or location advantages.
Document improvements made during the tenancy with photos and receipts. If you've upgraded the kitchen, bathroom, flooring, or added amenities, these justify modest increases above market rates. However, ensure improvements genuinely enhance tenant experience—cosmetic updates rarely justify significant increases.
Rising mortgage costs are a legitimate factor but require transparency. If interest rate increases have substantially raised your carrying costs, explain this to your tenant with documentation. Many quality tenants appreciate honest communication about cost pressures and may accept modest increases when reasons are clearly explained.
5. How Do I Present a Rent Increase Proposal to My Tenant?
Present proposals professionally and in writing. Include: the current rent amount, proposed new rent, percentage increase, effective date, market justification (comparable listings, property improvements, market data), and lease renewal terms. Maintain a respectful, business-like tone that acknowledges your tenant's tenure and reliability.
Example: "Based on current market comparables and recent property improvements, we're proposing a 3% increase to $3,400 monthly, effective [date]. This aligns with market rates for similar units in Commonwealth and reflects the upgraded fixtures installed last year."
Provide supporting documentation including comparable rental listings and details of any improvements made. This transparency builds trust and demonstrates your proposal is market-based rather than arbitrary. Allow your tenant 2-3 weeks to respond before following up.
6. What If My Tenant Refuses the Proposed Increase?
If your tenant declines your proposed increase, you have several options: accept a lower increase, maintain current rent to retain the tenant, or allow the lease to expire and re-let at market rates. Calculate which option maximizes long-term returns. A 2% increase with a quality tenant often generates better returns than 3-4 months of vacancy while searching for replacement tenants.
Vacancy costs are substantial: lost rental income, agent commissions (typically 0.5-1 month's rent), property maintenance during vacancy, and potential tenant turnover expenses. A quality tenant paying slightly below your ideal rate often provides superior returns to aggressive pricing that triggers turnover.
If your tenant moves out, re-list on Homejourney's Property Search platform at market rates. Document the previous tenant's reliability and any property improvements to attract quality replacements quickly.
7. Are There Legal Requirements for Rent Increase Notifications?
Singapore has no statutory notice period for rent increases—requirements depend entirely on your lease agreement. Most agreements specify 30-90 days' notice before renewal. Always review your existing lease terms carefully before proposing increases.
Best practice is providing written notice 60-90 days before lease expiration, regardless of lease requirements. This demonstrates professionalism and gives tenants adequate time to decide whether to renew or search for alternatives. Written notice protects both parties by creating a documented record of renewal discussions.
For lease renewal, you can either renew the existing agreement with updated rent terms or execute a new lease. New leases require stamp duty at 0.4% of annual rent (for leases exceeding 1 year), payable by both landlord and tenant unless your agreement specifies otherwise. Clarify stamp duty responsibility in renewal discussions to avoid disputes.
8. How Do HDB Subletting Rules Affect Rent Increases?
HDB subletting operates under specific rules that impact rent increase strategies. HDB flats can only be sublet to Singapore citizens or permanent residents, limiting your tenant pool compared to private properties. Rental income from HDB subletting must be declared to IRAS for tax purposes.
HDB rental growth faces headwinds from expanding MOP supply—13,500 additional flats becoming available for rent in 2026 alone. This supply surge particularly affects less convenient locations, making aggressive rent increases risky for HDB properties outside prime areas. For detailed HDB subletting compliance requirements, review Homejourney's HDB Subletting Deposit Rules & Compliance Checklist | Homejourney comprehensive guide.
Consider HDB location carefully when setting increases. Well-located flats near MRT stations in mature estates like Commonwealth may support modest increases, while similar units in newer estates with expanding supply face greater tenant resistance.
9. Should I Offer Incentives to Retain Quality Tenants?
Retaining quality tenants often justifies modest concessions. Consider: accepting a lower increase than market rates (e.g., 2% instead of 3%), offering lease term flexibility (1-year vs. 2-year options), including utilities or services in rent, or providing minor property upgrades.
Quality tenants—those who pay reliably, maintain the property well, and cause minimal disruption—are valuable assets. Losing such tenants to aggressive pricing creates substantial replacement costs. A 1-2% concession to retain a reliable tenant often generates superior long-term returns compared to 3-4 months of vacancy and tenant turnover expenses.
Calculate your true cost of tenant turnover: lost rental income, agent commissions, property inspections, potential repairs, and time spent managing the re-letting process. This often exceeds $5,000-10,000 depending on rental price. Modest concessions to retain quality tenants are frequently cost-effective strategies.
10. What Documentation Should I Maintain for Rent Increase Records?
Maintain comprehensive records of all renewal discussions and agreements: written rent increase proposals with dates sent, tenant responses, comparable market data used for justification, lease renewal documents, updated tenancy agreements, and stamp duty receipts. These documents protect you in disputes and provide evidence of fair, market-based pricing.
For IRAS tax purposes, maintain records showing rental income received, dates of increases, and documentation supporting any deductions (mortgage interest, property taxes, maintenance costs, agent commissions). Organized records simplify tax filing and protect you during audits.
If disputes arise, documented communication and market research demonstrate your increase was reasonable and market-based. This protects you if tenants challenge increases through mediation or Small Claims Tribunal proceedings.
Key Considerations for Strategic Rent Increases
Balancing Returns With Tenant Retention
The most successful landlords recognize that maximizing long-term returns often means accepting modest increases rather than aggressive pricing. A 2-3% annual increase with 95% occupancy generates superior returns to 4-5% increases with 80% occupancy due to vacancy costs and turnover expenses.
Calculate your break-even point: at what occupancy rate does a higher rent increase actually reduce your returns? For most landlords, this occurs around 85-90% occupancy. Pricing strategies that risk dropping below this threshold are financially counterproductive.
Market Timing and Seasonal Factors
Timing lease renewals strategically can improve success rates. Avoid proposing substantial increases during market downturns or when tenant supply is high (when tenants have abundant alternatives). Conversely, during periods of tight supply and high demand, tenants are more accepting of increases.
Current market conditions in early 2026 favor tenants due to rising supply and landlord competition. This is not an optimal time for aggressive increases. Modest increases aligned with market growth rates (1-3%) are more likely to succeed than above-market proposals.
Location-Specific Strategies
Tailor increase strategies to your property's location. Prime central locations with MRT access can support higher increases due to strong demand and limited supply. Less convenient locations face stiffer competition from expanding supply and should employ more conservative increase strategies.
For HDB properties, location determines viability of increases. Well-located mature estate flats near MRT stations support 2-3% increases, while newer estate flats in less convenient areas face 1-2% realistic increases due to MOP supply expansion.
Taking Action: Next Steps for Landlords
Research market rates: Browse comparable properties on Homejourney's Property Search platform, filtering by property type, location, and amenities. Document 5-10 comparable listings to establish realistic pricing.
Calculate your costs: Review Bank Rates to understand current mortgage interest rates and assess how cost pressures impact your investment returns. Use this data to justify increases to tenants if applicable.
Prepare renewal proposal: Develop a written proposal including market justification, comparable listings, and any property improvements. Present this professionally 60-90 days before lease expiration.
Connect with professionals: If you need guidance on complex renewal situations, connect with experienced property agents through Homejourney's directory. Agents can provide market insights and negotiation support.
Document everything: Maintain written records of all renewal communications, market research, and final agreements. These protect you in disputes and support IRAS tax reporting.
FAQ Summary: Quick Reference
- Fair increase range: 1-3% for HDB, 2-3% for private residential (2026 market rates)
- Research timing: Begin 2-3 months before lease expiration
- Market research: Compare 5-10 similar properties on Homejourney
- Notice period: Provide 60-90 days' written notice (check your lease terms)
- Justification:
