Sponsored by Sing-Guarantee
You cannot escape putting down a rental security deposit when renting a property in Singapore (like in many other countries). Landlords need resources to repair and maintain their property. These deposits act as coverage against any possible damage caused by tenants and help landlords maintain their property.
Even if it feels like a burden to pay, you also benefit from rental security deposits. The amount you deposit is enough to cover you for possible at-fault and no-fault property damages. In the event you miss paying rent (for valid reasons), the security cash deposit also pays for it automatically.
We have compiled a list of things you need to know about rental security deposits to help you understand how renting a property works in Singapore.
If you were in the position of your landlord, you would want tenants to respect your property too, right? However, you cannot be sure that every tenant would do that. The security deposit acts as a guarantee for the landlord that tenants will keep the property in good condition.
For example, you damaged a wall by accident. Your security deposit takes care of the future repair costs for that wall. It will avoid any conflict between you and your landlord and will help eliminate any headaches in the future.
The average rental security deposit is equivalent to two months’ worth of rent. Keep in mind that high-value properties often have higher security cash deposits than smaller rental properties. This is because landlords require more resources to cover maintenance and repair fees with such properties.
According to Singapore's rental law, landlords must return the security deposit within 14 days after the tenant has left the property.
However, tenants must provide landlords with a mailing or electronic payment account to return the deposit. Without one, landlords have the right to withhold their security deposit beyond 14 days.
Tenants who fail to receive their security deposit despite providing a mailing address or electronic payment account can file a complaint against the landlord in Singapore's Small Claims Tribunal.
Many expatriates find that their landlords never return their security deposits in full. However, this does not mean landlords are cheating their tenants. Landlords usually spend the deposit to address issues such missed payments, natural wear and tear, unpaid utilities, appliance or furniture damages, etc.
Rental security deposits are necessary for landlords to provide an excellent and flawless rental experience. However, with high property costs in Singapore, you cannot avoid paying a security deposit. This might make some tenants reconsider a property especially when you need to move into a Singapore property fast.
Luckily, there is a way to secure a Singapore rental without locking your cash in security deposit. Sing-Guarantee's rental deposit guarantee unlocks your cash, leaving you with more money to spend on your big move like new furniture, children’s school fees, and more!
For more information, please contact:
SG, Sing-Guarantee Pte. Ltd.Suntec Tower Three, 8 Temasek Boulevard #42-01, Singapore 038988
Tel: +65 6829 2301
Whatsapp: +65 8711 8500
From Monday to Friday from 8:30am to 05:30pm