How to Increase Rent on Tenancy Renewal: SG Cost Guide | Homejourney
In Singapore, landlords can increase rent when renewing tenancy based on market rates, as there is no statutory rent control. Typical adjustments range from 2-5% in 2026, reflecting stabilized market conditions with higher housing supply capping growth[2]. Homejourney helps you verify fair rent adjustment through transparent data, ensuring safe renewals for both parties.
This cluster article on how to increase rent when renewing tenancy cost guide provides tactical steps for landlords while empowering tenants with negotiation tools. It links to our pillar content on Lease Renewal & Rent Increase Guide for SG Landlords, offering comprehensive coverage of rental strategies in Singapore's dynamic market.
Understanding Singapore's Rental Renewal Basics
Tenancy renewal in Singapore typically occurs 1-2 months before lease expiry, with no legal minimum notice but standard practice via written agreement. Private properties have a 3-month minimum lease, while HDB flats require 6 months minimum and up to 2-3 years maximum[4]. Landlords propose rent increase renewal terms during this period, backed by market evidence to avoid disputes.
Temporary measures from January 22, 2024, to December 31, 2026, relax occupancy caps to ease demand pressures: up to 6 tenants for private properties under 90sqm and 8 for larger ones; HDB follows similar limits (4 for 1-2 room, 6 for 3-room, 8 for larger)[1][4]. This supports families but influences market rate rent calculations during renewals.
Factors Influencing Rent Increases in 2026
Singapore's rental market stabilized in 2025, with private rents growing 2.5-3% and HDB at 1.4%, down from prior surges due to increased supply—nearly 100,000 units expected 2023-2025[1][2]. In 2026, growth remains capped at low single digits, with 13,500 HDB flats reaching Minimum Occupation Period (MOP), boosting supply especially in mature estates like Dawson or Kallang[2].
Key factors for rental increase:
- Property Type & Location: Well-located HDB near MRT (e.g., SkyOasis@Dawson) command premiums; private condos in CBD see 3-5% hikes[2].
- Market Conditions: Higher mortgage rates, taxes, and inflation pass costs to tenants, but competition from new MOP flats tempers aggressive raise rent moves[1].
- Property Upgrades: Recent renovations or added amenities (e.g., aircon servicing via Homejourney's aircon services) justify 5-10% increases.
Landlords: Check comparable rentals on Homejourney's property search for evidence-based rent adjustment.
Step-by-Step Guide to Increase Rent on Renewal
Follow these actionable steps for a smooth increase rent renewal process, compliant with Singapore's common law principles and Stamp Duties Act.
- Research Market Rates (4-6 Weeks Before Expiry): Use URA data and Homejourney's projects directory to benchmark. For a 3-room HDB in Toa Payoh, expect S$3,200-3,500/month in 2026, up ~2% from 2025[2].
- Notify Tenant Early: Send a formal letter proposing new rent (e.g., 3-5% increase) with comparables. Discuss via Homejourney-connected agents at Homejourney agents.
- Negotiate Terms: Offer incentives like flexible move-in or maintenance perks. Tenants can counter with loyalty discounts.
- Draft New Agreement: Update for stamp duty (0.4% of annual rent for leases ≥1 year). HDB subletting requires board approval.
- Stamp & Register: Submit to IRAS within 14 days; report income for tax.
Disclaimer: This is general guidance; consult professionals for personalized advice. Homejourney verifies info for your safety.
New Lease vs. Renewal: Cost Comparison
| Aspect | Renewal | New Lease |
|---|---|---|
| Stamp Duty | 0.4% if terms change significantly | Full 0.4% of annual rent |
| Admin Costs | Lower (S$100-200) | Higher (S$300+ agent fees) |
| Tenant Friction | Minimal | Higher risk of vacancy |
Renewals save costs but allow market rate rent alignment. Excessive hikes (>10%) risk Small Claims Tribunal disputes (up to S$20,000).
Fair Increase Ranges & Tenant Considerations
Fair rent adjustment in 2026: 1-3% for HDB, 2.5-5% for private, per analyst forecasts[2]. Tenants facing hikes should compare via Homejourney rental search and weigh moving costs (1-2 months' rent + agent fees).
Insider Tip: In high-demand areas like Punggol, MOP flats boost supply, pressuring rents downward—perfect for tenants negotiating[2]. Landlords, avoid common pitfalls outlined in our Top Lease Renewal Mistakes guide.
FAQ: How to Increase Rent When Renewing Tenancy
1. What is a fair rent increase in Singapore 2026?
Expect 2-5% based on market stabilization and new supply; use Homejourney tools for precise comparables[2].
2. Can landlords raise rent mid-lease?
No, increases only at renewal under contract terms. Disputes go to Community Mediation Centre or Small Claims Tribunal.
3. How much stamp duty for renewed tenancy?
0.4% of total rent if ≥1 year and terms updated; exempt if identical[4].
4. What if tenant refuses rent hike?
Offer alternatives or find new tenants via Homejourney. Vacancy risks 1-2 months' lost rent.
5. Are there rent controls for HDB?
No controls, but subletting caps apply (e.g., 6 for 3-room till 2026)[1].
Trust Homejourney for verified rental insights—compare rates on our platform, connect with agents, and explore financing at bank rates. For full strategies, read our pillar on Lease Renewal Guide. Start your safe rental journey today!
