Short-term stays are featuring strongly in most travelers’ itineraries and landlord’s rental portfolios. But currently, renting out properties for stays shorter than 3 months in private non-landed properties and 6 months in HDB flats is illegal.
URA taking steps to make short-term stays legal with clauses
The authorities may, however, be taking steps to legalize short-term stays albeit with some safeguards. Some consider the Urban Redevelopment Authorities’ (URA) proposed rules to be too rigid.
URA has finally outlined a list of safeguards last week in a public consultation on short-term accommodation. It may allow home-sharing in private residential properties but maintains its stand to closely regulate the practice. The consultation ends on May 31.
Landed estates are likely to be excluded from the practice as they are usually located in quiet neighborhoods with no governance structures. In some private residential non-landed properties, however, URA is proposing a new short-term accommodation category which can be adopted upon securing owners’ consent and are registered as such.
Safeguards put in place to protect residents
In larger condominiums with management committees, owners with 80% of the share value will have to come to an agreement on the change of use. On top of this rule, there is also a 90 days annual rental cap with a maximum occupancy of 6 persons per unit.
Management committees are also allowed to impose additional measures such as requiring home-sharing owners to pay additional maintenance fees for common areas and facilities.
In addition, home-sharing sites such as Airbnb and HomeAway could also be made responsible to track rental duration and getting of rental listings.