After 4 years of research and consultations, it is still a no-go for short term rental of properties here in Singapore despite the popularity of home-sharing services such as Airbnb.
URA will no proceed with proposed changes to short-term stays
While some homeowners or investors may have been waiting with bated breath for the Urban Redevelopment Authority (URA) to act on the proposed changes to rules for short-term stays, they have unfortunately decided not to do so for the moment.
Woodsvale, Condo. Picture: iProperty
A proposed regulatory framework was mooted last April to allow owners of strata-titled developments to rent units out for short-term stays with 80% consent from owners. Landlords of these units would have also had to register their units with URA and there would have been a cap of 90 days a year per unit.
Owners of private properties are allowed to rent their properties out only for periods of more than 3 months. There is not much wiggle room to circumvent the rules as it is illegal to rent out a private property for short-term accommodation under the Planning Act.
Offenders may risk fines of up to $200,000 and imprisonment terms of up to 12 months.
Home-sharing operators may be wary of cumbersome proposed rules
Rio Vista, Condo. Picture: iProperty
While some homeowners may be renting their units out for the short-term on the sly, residents in the same development may be getting tired of the high frequency of strangers moving in and out of neighbouring units.
Homeowners who have however backed the rule-changes are confident of the possibility to host guests without causing distress or disturbance to other residents.
Despite most of the 1,000 private homeowners who were surveyed last year in support of the proposed rules, home-sharing sites may, however, find the requirements too restrictive.
URA is, however, open to monitor the situation and could review the position in future. Home-sharing operators such as Expedia’s HomeAway and Airbnb hope that Singapore’s government will eventually create a framework which will be commercially feasible sans high entry barriers.
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