How are landlord and tenant disputes resolved?

Start with the tenancy agreement

Singapore does not have a comprehensive tenancy statute covering private leases. Most disputes therefore turn on what the tenancy agreement says, with general legal principles filling the gaps.

Before taking any step, read the clauses on the deposit, repairs, notice periods, early termination and the condition in which the property must be returned. Many agreements, for example, require the tenant to repaint or professionally clean the property at the end of the lease.

Repairs are also mainly a matter for the agreement. Landlords are typically expected to deal with major problems, such as structural, electrical or plumbing issues, within a reasonable time. Report problems in writing and keep a record of the response.

Security deposits

A security deposit gives the landlord some protection if the tenant leaves without paying rent or damages the property. At the end of the lease, the deposit should be returned, less the deductions the agreement allows, such as for unpaid rent or damage beyond fair wear and tear.

Tenants sometimes stop paying rent in the final month or two and ask the landlord to use the deposit instead. A standard agreement does not usually allow this, and the landlord may charge late payment interest. Landlords who agree take the risk that the remaining deposit will not cover any repairs.

Both sides benefit from inspecting the property and taking dated photographs at handover and at the end of the lease.

Ending a lease early

A fixed-term lease cannot usually be ended early just because one side wants to leave. It can be ended early where:

• the agreement contains a diplomatic clause, often used by tenants posted to Singapore by their employer, which allows the tenant to end the lease on conditions such as a job transfer;
• the agreement contains an en bloc clause allowing the landlord to end the lease if the development is sold collectively; or
• both parties agree to end it, usually recorded in a written surrender agreement.

Unpaid rent and taking back the property

A landlord whose tenant has stopped paying should not take matters into their own hands. Changing the locks, removing belongings or cutting off utilities without following the proper legal process can expose the landlord to claims by the tenant.

Where the agreement allows termination for breach, the landlord should give proper notice and, if the tenant does not leave, apply to court for possession. A landlord may also apply to court for a writ of distress, which allows the tenant's goods on the premises to be seized and sold towards unpaid rent.

Where disputes are decided

Disputes over residential leases of two years or less can go to the Small Claims Tribunals if the claim is within S$20,000, or S$30,000 if both sides consent. Deposit disputes are a common example. Commercial and industrial leases, and claims for possession, fall outside the tribunals and go to court, as do larger claims. Older guides that give a S$10,000 limit are out of date.

Getting advice

For commercial leases, larger sums, or any threat of eviction or lock-out, a lawyer can review the tenancy agreement and correspondence and explain your options, whether that is negotiation, a letter of demand, or a claim.