Are you hoping to make some extra money by offering your home for rent on Airbnb? If so, you aren’t alone. Many Singaporeans are offering their property for short-term rentals to foreigners and earning a nice second income this way. 

The Straits Times reports that in November 2016 there were approximately 7,000 properties in Singapore listed on Airbnb. By listing their home on Airbnb, a Singapore host can earn an extra $5,000 a year on average. 

Unfortunately, you would be breaking the law if you do this. Generally, when you sublet out your HDB flats, the duration of the lease must be for at least six months. If it’s private residential property, the rental duration must be for a minimum of three months. Additionally, it is illegal to rent out HDB flats to tourists. 

There are three ways that offering your Singapore property for short-term rentals on Airbnb can lead to legal problems:

1. Offering your Housing Development Board (HDB) flat to tourists as a short-term rental.

The type of people who search on Airbnb for short-term accommodations are almost always tourists. But owners of HDB flats are prohibited from renting to tourists. You are only allowed to rent your flat to foreigners who meet the requirements and have the proper documents, as follows:

• Expats with a Work Permit (with some restrictions), Employment Pass (EP), or S Pass
• Student Pass (SP)
• Long-Term Social Visit Pass (LTVP)
• Permanent Residents (PR)
• Singapore Citizens (SC)

Owners of HDB flats who are renting to too many tenants, exceeding the occupancy limit, may also face a fine, or even have their flat confiscated by HDB. 

2. You own private property and have rented it out for less than a three-month stay.  

When private property is rented out it must be for at least three months. This really is too long a stay for most people searching on Airbnb for accommodation. 

Owners of HDB Flats

Owners of HDB flats cannot rent their flats out to tourists in any case, but if they are going to rent their flat out, it must be for a minimum of six months. If you breach this law, you face being fined or even having your flat confiscated by HDB. 

Owners of Private Residential Properties

A law went into effect on 30 June 2017 making it illegal for private residential property owners in Singapore to rent their homes out for less than three consecutive months. The only way around this is by having the Urban Redevelopment Agency (URA) grant prior permission. 

Owners of private residential property who rent their home out for less than three months and are found guilty of this offence face a fine of up to $200,000. If the owner continues the rental after being convicted, he/she now faces a fine of up to $10,000 for every day that the rental goes on after their conviction.

Repeat offenders face the same fines, plus the possibility of going to jail for up to a year. 

Former real estate agent Joel Su Jiqing ,was forced to pay a fine of $158,000 after he was found guilty of subletting six residential units in Geylang via Airbnb for short-term stays, which are illegal. 

Su’s $158,000 fine was made up of $46,000 for the profits he made from his illegal rentals (after forfeiting the lease payments). He was additionally fined $112,000 as punishment for these egregious offences. 

3. Your property is rented out to too many tenants at once. 

Homeowners are legally restricted from renting their property out to too many people at once. Therefore, property owners can find themselves in trouble with the law if they have too many tenants living in their rental properties at any given time. 

Owners of HDB Flats

Owners of HDB flats cannot rent their flats out to tourists in any case, so if an owner is renting out their entire flat, the number of tenants that can live there at any given time is restricted to the following: 

• 1- or 2-room flats: 4 tenants
• 3-room flats or larger: 6 tenants

If the owner of a 3-room flat or larger is only renting the bedroom(s) out, the total number of occupants in the HDB flat at any given time is limited to six, and this includes the owner plus his/her family. Owners of smaller HDB flats are not permitted to rent their bedroom(s) out. 

Owners who exceed these occupancy restrictions when renting to tenants, face being fined or the possibility of having their flats confiscated by HDB. 

Owners of Private Residential Properties

A law went into effect on 15 May 2017 making it illegal for private residential property owners in Singapore to rent their homes out to more than six unrelated tenants at any given time. Approval from the URA is required before the property can be rented out to any more than that. 

Property owners who live in their homes with their families and domestic helpers and caregivers are only allowed up take in tenants as long as the total number of occupants does not exceed six. 

If the owner and his/her family, housekeepers and caregivers already exceed six, he/she is not allowed to take in tenants. 

Owners of private residential property who rent their homes out to too many tenants and are found guilty of this can face a fine of up to $200,000 and/or imprisonment for up to a year.  If the owner continues this practice after being convicted, he/she can then face a fine of up to $10,000 per day as the rental goes on after their conviction.

Are Guests Breaking the Law Staying in Airbnb Rentals in Singapore?

Singapore has no laws restricting guests from staying in Airbnb rentals. 

However, considering the housing laws in Singapore discussed above, there are risks for Airbnb guests. There is a chance that building security will bar someone with a confirmed booking from entering the premises, as has happened in the past.

In pondering whether or not you should list your home on Airbnb to make some extra cash, you need to know that this it because both HDB flats and private residential properties are not allowed to be rented to tourists. These laws make it hard for owners to legally list their homes for rent on Airbnb. 

Singapore has no current laws on the books keeping guests from staying in Airbnb rentals. But given the fact that property owners in Singapore cannot legally offer their properties for short-term rentals, and what Airbnb offers is short-term rentals, tourists take a risk booking stays in Airbnb rentals in Singapore. 

The Singapore government is now facing the fact that a vibrant home-sharing economy has emerged, so it is considering options as to how short-term rentals could be implemented for certain types of homes.

Disclaimer: The information provided in this article does not constitute legal advice. We recommend that you get the specific legal advice you need from an experienced attorney prior to taking any legal action. While we try our best to make sure that the information provided on our website is accurate, you take a risk by relying on it. 

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