A Good & Professional Estate Agent will definitely make your search for a business place easier. They will be able to match your business needs and functions and protect your interest. It is important to know the budget allocated and the preferred commencement date so the realtor can shortlist the most suitable match for the properties available.

Use Only 1 Real Estate Agent at a time

You should engage 1 Real Estate Agent at any one time for easier correspondences and coordination for viewing schedule.

Your Real Estate Agent will advice you the ideal location for your business based on your budget, business needs and functions.

For Commercial and Industrial business spaces, usually the viewing schedule is on weekdays. For Commercial Retail and Food & Beverages (F&B) outlets, the viewing schedule is more flexible.

Once you have decided to made an offer for the business space your Real Estate Agent will draft a LOI on your behalf to the landlord. The LOI should consist of the following

1. Commencement Date – Most Landlords would not want to wait and leave their properties empty for more than 2 months so be realistic on the start date.

2. Offer Price – Usually most landlords are willing to negotiate for 5-10% less on the rental asking price subject to other terms and condition.

3. Term of Lease – The lease term is usually 36 or 24 months.

4. Good Faith Deposit – It amount to one month’s rental. When the Landlord accept the LOI and good faith deposit, he/she has promised not to lease the property to other tenants until the Tenancy Agreement is signed. Upon signing the Tenancy Agreement, this deposit is considered as first month’s rental.

4. Furnishing – There are 3 types of Furnishing
– Bare. No Lights, blinds, carpet and furniture are provided.
– Partially Fitted. Lights, blinds, are provided.
– Fully Fitted. Lights, blinds, carpet and furniture are provided.

5. Any other request

6. Expiry of LOI – The document will state a period within which the Landlord must sign if the offer is accepted. Or else the offer is no longer valid and the Landlord shall return the good faith deposit immediately.

You have to get ready the soft or hard copies of your Business Profile and Registration Number file for submission to the landlord if you offer is being considered.

You need to verify the ownership of the commercial space before issuing out the good faith deposit. Your Real Estate Agent will need to show you either one the following below

1. IRAS annual property tax
2. IRAS valuation list
3. Singapore Land Authority (SLA) Property Ownership information

The Letter of Offer is usually issued from the Commercial Landlords to the Tenant when all the rental terms in the Letter of Intent (LOI) are mutually agreed by both parties.
When the Letter of Offer is signed and a non-refundable deposit given to the Commercial Landlord, the rental space is secured, subject to the final signing of the Tenancy Agreement.
The LOO unlike the LOI is a legally binding document.

The TA is legal contract between a landlord and you specifying the terms and condition of the rental agreement which is usually prepared the Landlord or Landlord’s Real Estate agent.

1. Landlord Information – Landlord’s name, identification details and mailing address.

2. Tenant Information – Tenant’s name, identification details and mailing or company address.

3. Rental Payment Terms – The monthly rental amount and the due date as well as the mode of payment.

4. Security Deposit – This amount is kept by the Landlord as security and is only refunded upon the end of the lease with interest-free. The landlord has the right to deduct all costs of damages and expenses arising from any breach of contract stated in the TA. For 36 months lease the security deposit is 3 months. For 24 months lease the security deposit is 2 months.

5. Repairs and Maintenance – The tenant is responsible for maintaining the leased premise, carry out minor repairs at own costs. For normal wear and tear situations, the tenant will be responsible for repair cost for the first S$150 – S$250.
Only major repairs and maintenance would be the landlord’s responsibility provided that the damage or malfunction of appliances is not caused by the tenant’s negligence.
The tenant will have to take up service contract for items such as air-conditioning. For landed house, the tenant need to take care of the pest control, gardening and swimming pool servicing.

The Tenant need to pay the Stamp Duty Fee on the TA to Inland Revenue Authority of Singapore (IRAS). Your Real Estate can do the stamping on your behalf with a service fee.

By then, your Real Estate Estate would have arrange to apply an utilities account on your behalf to turn on the Water, Electricity and Gas (Depending if there is provision in the business space). You need to sign an application form and you are good to go. There is all in one provider in Singapore which is SP Services.

If you need Internet or Cable TV connectivity, your Real Estate Agent should be able to arrange a Representative from the Service Provider to activate the services for you. The activation period could take immediate to a few days.

Utilities Deposit
The security deposit varies from S$50 – S$800 depending on your citizenship as well as the type of business space you are renting.
For foreigners renting an private apartment will require a deposit of S$500 and it will be reflected in your first bill.

During the Property take over session, your Real Estate Agent will go through with you an inventory list which will cover the fittings, furnishing, appliances and manuals in the business space.
Take note at the end of the lease term your Real Estate Agent will go through the same inventory list to make sure the items listed is accountable for.
Any damage or missing items may result in deduction of money from your security deposit.

Inland Revenue Authority of Singapore (IRAS) GST-registered Estate Agents have to charge GST on the commission that they receive if the service rendered is in relation to a property located in Singapore.