One of the largest costs you’ll face living in Singapore as an expat is home rental. If you’ve just arrived, you may find the monthly rent is much higher than you’re used to. It can cost between $5,000 to $10,000 a month for a good-sized, centrally located three-bedroom apartment. And most landlords will want the equivalent of three months’ rental upfront as a security deposit (two months security for a two-year lease plus the first months’ rent).
If you’re already living here and need a bigger place or want to be nearer to the city, it could mean that you’re having to come up with a new rental deposit before you’ve got the old one back. That’s quite a bit of cash out at one time.
Happily, there’s a solution to help you rent the place of your dreams, without the need to suffer financial stress. Recently launched is a service that may be more familiar to European expats. Sing-Guarantee is the first and only company in Singapore to provide rental deposit guarantees. Over the past 20 years, more than 50 percent of rental deposits in Switzerland have been paid through rental deposit guarantees. It’s a standard and accepted practice, and it’s now available in Singapore.
So, how does a rental guarantee work?
Business Development Director, Gordonn Chiu of Sing-Guarantee, explains the process. “Tenants simply have to apply online for a Sing-Guarantee certificate, made out in favour of the landlord. It will cover the landlord the same way a cash deposit does but at a fraction of the upfront cost to the tenant.”
By paying a small initial fee (the amount will depend on how much the guarantee is for) and an annual fee, landlords can be 100 percent protected and tenants don’t have to face those hefty upfront deposit costs. However, tenants are still responsible for paying for any damage to the property or for a default in rental payments.
“We are the first and only company incorporated and operating in Singapore to offer this service,” Gordonn explains. “We’re looking to help those who are in the rental market. We want to make it easier for people to move into a home quickly without tying up thousands of dollars in cash. Each Sing-Guarantee certificate is fully backed by an equivalent cash amount deposited with the largest bank in Singapore (AA-rated). It is managed by a regulated and independent Escrow Agent. So, landlords can rest assured that they’ll be protected.”
The online approval can take as little as 48 hours and you’ll even have the option of applying for a pre-approved certificate first (to be converted to the Sing-Guarantee certificate after you find your dream apartment), so you can start hunting for your new home straight away.
Visit sing-guarantee.com.sg to find out more.
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