Singapore should consider short-term rentals for private properties as it could help the country’s tourism industry and boost the government’s tax revenue, according to a forum letter submitted by Dr Huang Shoou Chyuan to the media.
“Such rentals are already popular and have proven to be a viable alternative to hotels in many parts of the world,” Huang wrote. “In Singapore, accommodation for visitors is not just expensive but often unavailable during peak periods, such as major holidays or events like Formula One races.”
For example, in the private healthcare industry there had been cases of foreign patients cancelling medical appointments as hotels were fully booked, while some could be already staying (probably illegally) in apartments at Chinatown or Orchard Road.
But if this practice is legalised, it will make the city-state’s hospitality sector more competitive, while the government would get a share from the landlords’ rental income.
As for possible problems arising from it like loss of privacy and overuse of common amenities, these can be addressed with regulations.
For instance, owners of HDB flats should not be permitted to do such as they reside in houses subsidised by the government, while private condos may allow such rentals if the strata title members approve it and revise the by-laws accordingly.
“Landed private housing, such as semi-detached and terraced houses, should be allowed to take part as long as tenants abide by existing laws. If they are noisy or cause congestions, police action should suffice,” explained Huang.
However, landlords must be held accountable and they need to keep a tenants registry to ensure proper tax submission.
Another potential benefit from short-term rentals is that demand for apartments could rise if there are more potential income streams, added Huang.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
