Lease Period
A common practice in Singapore is a duration of 2 to 3 years. Longer lease of 4 to 6 years will be subjected to negotiation. However landlord may insert a rent review clause in the lease agreement.
Rental
The gross rent is normally paid on gross rate per square feet per calendar month. This includes service charge, but excludes Goods and Service Tax (7% GST).
Service Charge
The charge refers to the payment for general management services provided by the landlord, such as air conditioning during office hours, building maintenance, management fees, building repairs and security. The service charge may change during the lease term if there is any increase.
Security Deposit
A refundable security deposit equivalent between 3 to 6 months gross rent is common practice and payable by the tenant upon signing the letter of offer. It is refundable without interest when the lease expire. The number of months usually depends on tenant's paid-up capital and operation period.
Legal/Admin Fees
This is usually borne by the tenant for preparation of the lease agreement.
Stamp Duty
The tenant is responsible for the cost of the stamp duty which is calculate base on below formula:
For 1 year lease: (Rental Per Month x 12 / 250) x 1
For 2 to 3 years lease: (Rental Per Month x 12 / 250) x 2
For 3 years lease & above: (Rental Per Month x 12 / 250) x 4
Ultilities
The tenant is responsible for all general electricity, telecommunication bills and connection charges.
Air Conditioning
For most office buildings, central air-conditioning operates during office hours.
Weekdays: 8.00am to 5.30 - 6.00pm
Saturdays: 8.00am to 1.00pm
(Sundays and public holidays excluded)
After office hours air conditioning can often be provided on a chargeable cost vary from $40 to $80 per hour. Some building allow tenant to install their own air-con unit.
Car Parking
Season parking lots is usually allocated to tenants according to the total area leased. Average ratio is 2000 sq ft per lot. Cost average $170 to $300 per lot per month exclusive 7% GST. Additional lot will be subjected to availability.
Reinstatement
All tenants are required to put the premises back into their original state at the termination of their lease. However, in some circumstances, landlord allows tenant to leave the fittings behind if the new incoming tenant is willing to take over the existing fittings.
