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10
dTZ | In Situ
Singapore
OperATIOnAl
•
Tenants must submit their fit-out
plans to the landlord and the relevant
authorities for approval, prior to the
commencement of any fit-out work
•
Tenants are required to reinstate
the leased premises to its original
conditions (except for fair wear and
tear) upon lease expiry.
reAl eSTATe
•
Tenants are required to have a paid-up
capital of at least six months’ rent;
otherwise they will be required to pay
a larger security deposit equivalent
to six months’ rent, as opposed to the
typical three months’ rent
•
Tenants pay the legal fees of both
their own solicitor and the landlord’s
solicitor for preparing the lease
agreement
•
Lease agreements are drafted in
english and commercial landlords
normally maintain a standard lease
agreement for their portfolio of
buildings, seldom entertaining
substantial changes to their standard
draft
•
most landlords do not allow their
tenants to lodge caveats in respect
of any of their rights, titles, benefits
or interests under their leases, or
to register their leases with the
Singapore Land Authority
•
Landlords pay the property tax but
have the right to claim any increase
in tax from their tenants, arising from
any increase in the rate of tax and/
or an increase in the assessed annual
value of the property.
leGISlATIve
•
Tenants bear the stamp duty fees
levied on lease agreements by the
Inland revenue of Singapore (IrAS)
•
rents and brokerage fees are subject
to Goods and Service Tax (GST), which
is currently 7%
•
urban redevelopment Authority
(urA) guidelines governing the use
of light or heavy industrial properties
and business parks are subject to the
60:40 ruling, where:
—
At least 60% of the gross floor area
is to be used predominantly for
industrial/warehouse activities
—
The remaining 40% may be used as
ancillary offices, staff canteen and
communal facilities
•
Failure to comply with these guidelines
may result in termination of the lease
and eviction from the premises
•
In addition to the usual property
related insurance, tenants are required
to take out and maintain a public
liability insurance policy in the joint
names of the landlord and the tenant.
