Avoid These Common Lease Renewal and Rent Increase Mistakes as a Singapore Landlord
The most frequent mistake Singapore landlords make during lease renewal and rent increase is failing to provide proper written notice, which can invalidate increases and lead to disputes at the Small Claims Tribunal. This Common Lease Renewal and Rent Increase Guide for Landlords Mistakes highlights key pitfalls, drawing from HDB, URA, and CEA guidelines to help you renew tenancy legally and confidently.
At Homejourney, we prioritize user safety by verifying rental information and connecting landlords with trusted agents, ensuring transparent transactions. This cluster article supports our pillar on Lease Renewal & Rent Increase Guide for SG Landlords, offering tactical advice for private and HDB properties.
1. Not Understanding Legal Notice Periods for Rent Increases
Landlords often attempt rent increases without the required notice, risking tenant rejection or legal challenges. Under Singapore's tenancy laws, which rely on contract terms and common law, you must give at least one month's written notice for periodic tenancies (e.g., monthly), or as specified in fixed-term agreements—typically 1-2 months for 12-24 month leases.
For HDB flats, subletting rules require HDB approval before any changes, and premature increases violate approval conditions. Insider tip: Always reference the original Tenancy Agreement (TA); if silent, default to one month's notice per the Control of Rent Act principles, though no rent control exists today.
- Actionable Step 1: Send notice via registered mail or email with read receipt, stating new rent, effective date, and renewal terms.
- Actionable Step 2: Use a template from CEA's website, customizing for your property—e.g., a 2-bedroom condo in Punggol rising from $4,000 to $4,400 monthly.
- Actionable Step 3: Document tenant acknowledgment to avoid "no notice received" claims at Small Claims Tribunal (SCT), which handles disputes up to $20,000.
Skipping this leads to 30% of rental disputes, per State Courts data. Check current market rates on Homejourney's rental search to justify increases legally.
2. Ignoring Stamp Duty on Rental Renewal Agreements
A critical error is renewing leases without paying stamp duty, rendering agreements unenforceable. Per IRAS Stamp Duties Act, leases over 1 year or with renewal options incur 0.4% duty on annual rent (e.g., $4,800 for $1.2M yearly rent), payable within 14 days of signing.
Landlords forget this during rental renewal, especially for supplemental agreements extending terms. For example, extending a 12-month TA by 12 months triggers fresh duty on the higher rent. HDB sublets require online stamping via HDB's portal post-approval.
- Calculate duty using IRAS online tool: Contractual vs. market rent, whichever higher.
- Submit via e-Stamping within 14 days; late penalties up to 200%.
- Retain stamped copy—SCT requires it for enforcement.
Homejourney verifies agreements for safety; list your property on our platform to attract compliant tenants who understand these rules.
3. Proposing Unreasonable Rent Hikes Without Market Evidence
Over-aggressive rent increases (e.g., 20-30% jumps) during lease renewal prompt tenants to leave or challenge via mediation. Market data shows average increases of 5-10% in 2026 for mature estates like Bedok, per URA indices—base hikes on comparables within 500m.
Mistake: Relying on outdated listings instead of current data. Solution: Use Homejourney's projects directory for verified rents in your area, e.g., $5.50 psf in non-landed Tampines vs. $7 psf in new launches.
- Research 3-5 similar units via Homejourney rental search.
- Justify in notice: "Aligned with 8% market uptick per URA Q4 2025."
- Offer incentives like free aircon servicing via Homejourney's maintenance partners to ease acceptance.
4. Failing to Screen Tenants During Renewal Negotiations
Renewing with problematic tenants without reassessment is risky. Common issue: Tenants with late payments or damages slip through. Best practice: Treat renewal as new tenancy—request updated docs (income proof, references).
For HDB, reconfirm eligibility via HDB portal. Link to our related guide on preventing tenant defaults. Connect with vetted agents at Homejourney agents for screening.
5. Overlooking Tax Implications and Documentation
Forget IRAS rental income reporting, and face audits. Renewals with hikes increase taxable income; deduct expenses like agent fees, maintenance. Mistake: No inventory checklists at renewal, complicating damage claims.
Track via Homejourney bank rates for financing yields. For disputes, reference SCT eviction timelines in SCT guide.
Practical Decision Framework for Safe Renewals
Follow this 5-step checklist:
- Assess market rent 3 months pre-expiry using Homejourney tools.
- Issue written notice 1-2 months ahead with justification.
- Stamp new TA via IRAS/HDB.
- Conduct joint inspection; photo document.
- If rejected, relist on Homejourney for quality tenants.
Disclaimer: This is general advice; consult CEA agents or lawyers for specifics. Homejourney verifies info for trust.
FAQ: Common Lease Renewal and Rent Increase Questions
How much notice for rent increase in Singapore? Typically 1-2 months written notice, per TA terms. For monthly tenancies, at least 1 month.[4]
Can I increase rent mid-lease? No, unless TA allows (e.g., CPI-linked). Wait for renewal to increase rent legally.
What if tenant refuses renewal? Issue vacation notice; for HDB, notify HDB. Use Community Mediation Centre first.
Is stamp duty needed for 6-month renewals? No, under 1 year exempt. Over 1 year: 0.4% on annual rent.[4]
How to evict post-renewal dispute? See eviction guide; SCT for unpaid rent.
Master lease renewal pitfalls with Homejourney—your safe partner for rentals. Explore our pillar guide for full coverage and list today for trusted tenants.
