The main causes of rental disputes between landlords and tenants often include questions about security deposits, maintenance obligations, the speed of repairs and complaints.
From: Mrs Nicolette Tan
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At the end of a tenancy, the tenant may want the full return of his or her security deposit, but the landlord may have a competing interest in using all or part of the deposit to cover the tenant’s obligations under the lease.
Image 1: by Gerd Altmann on Pixabay
Determining your contractual rights and obligations to avoid rental disputes
Most rental agreements impose the following obligations on tenants:
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the obligation to restore the property to the condition in which it was handed over at the beginning of the tenancy, subject to normal wear and tear and subject to any alterations or additions to the property with the consent of the landlord;
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the obligation to carry out minor repairs throughout the rental period (e.g. changing light bulbs, ensuring regular maintenance of air conditioning systems, garden maintenance); and
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the obligation to pay all fees and charges incurred during the rental period as well as other agreed costs (such as for utilities, gas, electricity, water and/or Internet access and cable television).
In certain cases where a tenant has leased a property for specific purposes, a landlord may specifically require the tenant to repair and/or indemnify the landlord for certain types of damage caused by the tenant’s obligations with respect to the premises.
Lease agreements also typically impose obligations on landlords, such as the obligation to carry out certain repairs (e.g. repairs above a certain value, repairs to electrical and plumbing systems). Tenants should therefore be aware that landlords cannot require them to remedy defects or restore the leased premises in respect of such claims.
Preserving your right to repayment of the rental deposit
A tenant should ensure that all of their obligations under the lease are met before the end of the lease. The tenant should also check that sufficient time has been allowed at the end of the lease to carry out any necessary refurbishment or restoration work. (The trial handover should therefore ideally take place much earlier, before the tenant moves out.)
A tenant should also consider conducting a joint inspection of the premises with the landlord and/or their representatives at the end of the tenancy. A joint inspection should record the condition of the premises at the time of handover by the tenant. If the parties do not agree with the condition at the time of handover, the details and discussions reached during the joint inspection will inform the tenant of what the landlord may claim from the security deposit.
In case of rental disputes with the landlord regarding the deposit
If the landlord is of the opinion that the deposit is required to pay for necessary renovation or restoration work, it may happen that the tenant’s deposit is retained in whole or in part or that the landlord even demands the difference.
A tenant may consider the following action(s):-
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reserves the right to seek the advice of a professional surveyor who will request an inspection of the premises based on the Landlord’s list and provide a report (i) on the adequacy of the list, (ii) questioning any claims relating to work relating to normal wear and tear or beyond the scope of its obligations under the Lease and (iii) the method of remediation and the corresponding cost of any work deemed reasonable.
If the landlord’s demand for remedial or restorative works is justified and the tenancy has been terminated, the landlord may be able to recover lost rent from the tenant to compensate for the time required to carry out these works. Therefore, it would be advisable to resolve any issues relating to the restorative works before the tenancy ends to avoid potential tenancy disputes.
What should a tenant do if there is a rental dispute with the landlord?
In the event of a rental dispute where the landlord cannot reach an agreement on the security deposit, the tenant should seek legal advice that will enable the tenant to file a lawsuit or negotiate an agreement on the amount of the security deposit. A legal advisor can also help obtain a report from a professional appraiser.
If you are a landlord, you can read the Landlord’s Guide to Tenancy Deposit Disputes
Issues arising from the circuit breaker period and the COVID-19 (Temporary Measures) Act 2020 and related regulations
Due to delays and disruptions in services during this period, tenants may encounter several problems, such as being unable to meet their obligations at the end of the lease and, as a result, being in breach of the lease agreement.
Among other things, landlords can demand the loss of the security deposit, which tenants who are forced to breach the contract due to the circumstances would find obviously unfair.
Tenants should seek legal advice on the newly introduced laws and regulations to understand their rights and legal protections. Tenants can also receive more targeted advice on other legal solutions to help them deal with the difficulties of their situation.
Need advice? Contact our lawyer Mrs Nicolette Tan at 63275794 from ASCENTSIA LAW CORPORATION conveniently located at 10 Anson Road #03-22 International Plaza Singapore 079903 (Tg Pagar MRT) or contact us HERE.
Paul Ho, founder and CEO of iCompareLoan.com, says: “In Singapore, interest costs are low, around 1% (as of 2020), and yields are around 2%. This means that the overall cost can be lower if the tenant is willing to make a long-term repayment commitment and provide ‘forced savings’ in the form of repayment. The only obstacles are the huge down payments of 25% of the property price or appraised value (whichever is lower) and, for non-Singaporeans, the additional buyer stamp duty. In your own home, you can do whatever you want with renovations and don’t even need to get the landlord’s permission to hammer a nail into the wall for a portrait.”
The post “Rental Dispute – What Happens If the Landlord Doesn’t Pay Back the Security Deposit” first appeared on iCompareLoan Resources.
