1 Room Flat For Rent In Singapore No Agent
Basemat Doolen
Landlords of qualifying non-residential properties can refer to the Tax Treatment of Rental Relief Measures under the Rental Waiver Framework for Year of Assessment 2022. (for rental income received in 2021)
Under the Rental Relief Framework, owners (i.e. landlords) of qualifying non-residential properties would also have received a cash grant in 2020 and are required to provide rental waivers to eligible tenants.
The net rental income after deduction of any allowable expenses is subject to income tax. It is taxable from the date it is due and payable to the property owner, and not the date of actual receipt.
To simplify tax-filing and reduce the burden of record-keeping, an amount of deemed rental expenses calculated based on 15% of the gross rent will be pre-filled in the online tax form. In addition to the 15% deemed rental expenses, property owners may still claim mortgage interest on the loan taken to purchase the tenanted property. Please keep the supporting documents relating to the mortgage interest for at least 5 years for verification purposes. For deemed rental expenses claim, it is not necessary to keep records of the other rental expenses incurred.
Alternatively, property owners may opt to claim the amount of actual rental expenses incurred. Please retain all supporting documents such as tenancy agreements, bank mortgage statements, invoices and receipts for at least 5 years for verification purposes.
From Year of Assessment 2022, any expenditure incurred by a landlord for the repair, insurance, maintenance or upkeep of a property when it is vacant in any part of a basis period, and any property tax paid on that property for that vacancy period can be deducted against rental income. This is subject to the condition that reasonable efforts have been made to find a new tenant during the vacancy period(s) in between leases.
Costs in engaging a third party (e.g. property agent / company) to carry out activities such as ensuring rentals are paid promptly, maintenance and upkeep of the properties and attending to tenants queries and complaints.*
The relevant expenses incurred on such properties (e.g. rent, utilities, maintenance paid for own accommodation/a vacant property) cannot be claimed against the rental income generated from other properties as the expenses are capital and private in nature.
* From Year of Assessment 2022, this includes costs incurred during the vacancy period(s) in between leases (provided that reasonable efforts have been made to find a new tenant during the vacancy period in between leases)
If you have more than one tenanted residential property and opt to claim actual rental expenses on any one tenanted residential property, you will need to apply this treatment consistently to all your tenanted residential properties. You cannot claim 15% deemed rental expenses on one tenanted residential property and claim actual rental expenses on another tenanted residential property.
For tenanted non-residential property, you would only be able to claim the actual rental expenses incurred. You are required to keep the supporting documents for at least 5 years for verification purposes.
You have rented out your residential property at a gross rent of $5,000 per month for the full year. Besides the interest of $12,000 paid on the loan taken to purchase the property, you have incurred a total amount of $7,500 on other deductible expenses, namely property tax, fire insurance and maintenance. You may claim the deemed rental expenses as follows:
You are living in a 4-room flat with 3 bedrooms. You sublet one of the rooms for the full year. Your tenant pays you $600 per month as rent. The total amount of deductible expenses incurred for the whole flat is $3,000. You must apportion the allowable expenses incurred based only on the number of rooms rented out. Alternatively, you may opt to claim the rental expenses based on 15% of the gross rental income.
Your net rent is calculated as follows:
You have to declare the gross rent of your property in the previous year and details of deductible expenses of each property under 'Other Income: Rent from property' in your Income Tax Return.
Rental income from partnership property
If rental income is derived by a partnership from its partnership property, the rental income is to be reported in the partnership Income Tax Return (Form P).
Where rental income is received by the partnership in the business of investment holding or operating coffeeshops/eating houses/food courts, the rental income is to be reported as business income of the partnership in the partnership Income Tax Return (Form P).
You may incur penalties for submission of incorrect returns (e.g. failing to report any rental income) to IRAS.
However, IRAS may waive the penalty if voluntary disclosure is made within the 'grace period' of 1 year from the statutory filing date.
Losses from renting out your property cannot be carried forward and used to offset against any other income (e.g. employment income) that you may have in the same year or in the future.
However, as an administrative concession, you may use the rental loss of one property to offset against the taxable rental income of another property in the same year provided all the rented out properties have been rented out at market rates.
The information was pre-filled based on the rental information reported by you in the previous year or from our e-Stamping records. If the actual rent received by you was different, you must report the correct amount. Please note that there are penalties for filing an incorrect Income Tax Return.
The details were pre-filled based on the filing you have done in the previous year or from our e-Stamping records. If you have not rented out the property in the preceding year, please update the status of the property as 'Not Rented Out'. If you have rented out the property for part of the year, please report the rental income received for that period.
Each co-owner should declare the full rental income and related expenses in their individual Income Tax Return. The co-owners should also indicate their percentage share of the net rent based on their legal share of the property.
The rental income details were pre-filled based on the filing you had done in the previous year or our e-Stamping records. If you have rented out the property for only part of the year, please adjust the rental period accordingly and report the rental income received for that period.
The rental income details for the first 7 properties will be pre-filled based on your filing in the previous year and/or our e-Stamping records. A consolidated amount will be shown for the eighth and subsequent properties based on your filing in the previous year and/or our e-Stamping records.
As your property was permitted under the Planning Act to be used for non-residential purposes, you will have to claim actual amount of deductible expenses incurred even if you may have let out the property for residential use.
The amount of 15% deemed expenses is only applicable for tenanted residential properties. If you only derived rental income from tenanted properties permitted for non-residential use under the Planning Act, this option is not applicable to you.
Scammers are putting up fake property listings online and impersonating property agents to scam victims into making payment to secure an appointment to view or rent the property. In Singapore, all property agents must be registered with the Council for Estate Agencies (CEA) before they can facilitate property transactions.
Step 2: If the search does not lead to a property agent's profile page, it means that the phone number is not registered with CEA. It is likely a scam even though the property agent's name and registration number can be found on the CEA Public Register.
Since February 2022, rental scams involving impersonation of property agents have emerged in Singapore.
Scammers would post fake property listings on various advertisement sites and online platforms, and impersonate registered property agents by using their credentials (e.g., CEA registration number, business card, and photos/videos of the property to be leased).
Victims would initiate a conversation with the scammer through WhatsApp using the contact number listed on the fake listing, who would then pressure the victims to make payment in order to secure the rental property.
Ms A responded to an online listing for a room rental that had been posted by a scammer impersonating a CEA-registered property agent. The scammer communicated with Ms A through WhatsApp using a Malaysian mobile number, claiming to be based in Malaysia.
Ms A was asked to pay a one-month refundable rental deposit to secure an appointment to view the property. Ms A, sensing that something was amiss and questioning the need to pay a deposit before viewing, decided to alert CEA about this peculiar practice.
Mr B transferred partial payment to the scammer and decided to call the registered contact number again. When the call was answered by the legitimate property agent, who was unaware of all that had transpired, Mr B realised that he had been scammed and decided to lodge a police report.
Take note that you cannot rent out your flat to owners of Executive Condominium units who have not met their five-year MOP, or to those who own or rent out their own HDB flats. The only exceptions are if the potential tenant is divorced or legally separated, or is eligible to sublet his or her own flat.
After this, the tenant has to bear the first $150 (or depending on the amount agreed by both parties) of repair costs, while the landlord takes care of the rest. For appliances that cannot be fixed, the landlord has to replace it at his own cost.
However, when your tenant hands over the room or unit, you should check against your inventory list and take note of damages or missing items. The security deposit is your safety net to cover the necessary repairs or replacements before you refund the rest.
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