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3 Main Reasons Why Short-term Rental in Singapore is Illegal

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The Singapore property rental market is unique. Singapore’s law prevents public housing rentals that are under six months – or three months in the case of private housing.

So if you’re asking whether Airbnb-style rental is legal in Singapore? The answer is NO. Short-term rentals offered by platforms such as Airbnb will remain illegal in Singapore.

3 Main Reasons Why Short-term Rental in Singapore is Illegal

Urban Redevelopment Authority (URA) said the majority felt short-term rentals would have a negative impact on other residents.

1. Safety and Privacy

If short-term rental like Airbnb style is allowed, there would be many strangers moving in and out of the units, and no one knows about their background.

The results of URA’s survey of private homeowners reveal that seven out of 10 felt short-term rentals would raise security concerns in their estate and result in loss of privacy for residents.

2. Peace and Order

Singapore neighbourhoods are used to a peaceful good night’s sleep. HDB recommends observing quiet hours between 10:30 pm and 7:00 am. Since it’s a time of merriment for Airbnb users, they may not spare a thought to the neighbours.

The results of the survey reveal that more than six in 10 felt short-term occupants could misbehave and cause noise and other disturbances or damage common facilities.

3. Survival of the hotel industry

A deluxe room in a hotel in Singapore may cost SGD320 for one night. Meanwhile, a 3-room HDB unit situated directly across can demand rental of SGD 2,400 a month or on average, $80 a night.

Travellers on a budget would prefer to stay in a flat for four days, for the price of one night in the hotel.

Though short-term rentals could provide an income supplement to homeowners, URA’s decision will help to support demand for mid-tier and economy hotels.

This short-term stay issue may be complex and multi-faceted, it’s good that it has finally been decided after nearly four years of consultation.

Renting a home in Singapore definitely requires thorough financial planning and caution so nothing can go wrong. Here’s a handy guide to ensure that your home rental in Singapore is legal.

Start your housing journey with this 7-step guide in renting an HDB or 6-step guide in renting a condo in Singapore for foreigners. If you’re looking to rent a room, here are the answers to the frequently asked questions when renting a room in Singapore.

Ohmyhome has several app features that may help in your home search. Download Ohmyhome from Play Store or App Store now!

Sources: Today Online, Tech Crunch, HDB


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