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A Guide to Common Residential Tenancy Dispute in Singapore

Landlord-tenant relationships can be complex, and while many tenancies proceed smoothly without issues, disputes do occasionally arise. These disputes often stem from misunderstandings regarding lease terms or payment obligations. However, a solid understanding of tenancy laws can help prevent these disagreements or facilitate their resolution, ensuring a smoother rental experience for both parties.

As a real estate salesperson, having knowledge of tenancy laws in Singapore and dispute resolution processes is not only beneficial but also a crucial part of their professional development. This knowledge can help manage client relationships, resolve conflicts, and maintain smooth transactions, thereby enhancing your value in the competitive real estate market.

Introducing Common Tenancy Disputes in Singapore

Understanding the key causes of tenancy disputes is essential for real estate professionals. Some of the most common tenancy disputes you should be aware of as a real estate professional include:

1. Failure to Pay Rent

One of the most frequent issues that arise in tenancy disputes is the failure of the tenant to pay rent. A tenant’s obligation to pay rent is outlined in the lease agreement, and when they fail to do so, it can lead to a breach of contract. When this happens, landlords could:

  • Sue for breach of contract: Landlords can initiate legal proceedings against the tenant for not fulfilling their contractual obligations.
  • Obtain an order to recover possession: Landlords can seek a court order to regain possession of the premises if rent remains unpaid.
  • Re-enter the premises and forfeit the lease: Should rent be overdue, a landlord can re-enter the property and terminate the lease.
  • Exercise the right to distress: This allows landlords to seize goods on the property in lieu of unpaid rent, with the option to sell the seized goods.

2. Damage Caused to Premises During Tenancy Period

Another common issue involves damage to the property during the tenancy period. A lease agreement typically includes a “no damage” clause, making tenants liable for any harm done to the property. Should there be any damage to the property during the tenancy period, the landlord could:

  • Take legal action for breach of contract: If the damage was significant, the landlord could seek compensation through a court case.
  • Recover possession of the premises: Should the tenant refuse to pay for damages, the landlord can apply for a possession order.

3. Refusal to Leave After Termination of Tenancy Agreement

When a tenancy agreement is terminated, tenants are legally required to vacate the premises. However, some tenants may refuse to leave, resulting in a situation known as “holding over.” In such cases, landlords are entitled to 

  • Charge the tenant double the amount of rent for the period they remain in the property after the termination.
  • Charge the tenant an amount equivalent to double the value of the premises for the duration of their continued occupation.

This serves as a financial deterrent for tenants who refuse to vacate and ensures that landlords are compensated for the extended use of their property.

4. Subletting of Premises or Assignment of Lease to a Third Party

Unauthorised subletting or assignment of lease is a frequent issue in tenancy agreements. Many agreements explicitly prohibit these actions or require the landlord’s consent. While landlords have the right to protect their interests, it’s important to remember that consent shouldn’t be unreasonably withheld. If a tenant requests to sublet or assign the lease according to the agreement’s terms, the landlord should provide a valid reason for any refusal.

Alternative Tenancy Dispute Resolution Methods

While litigation can be an option, it can be costly and time-consuming. As such, landlords and tenants in Singapore might also consider a different option for tenancy dispute resolution, such as:

Mediation

Mediation refers to a voluntary and confidential process where a neutral third party helps the disputing parties come to a mutually acceptable solution. If a landlord and a tenant want to settle their tenancy disputes, then they can attempt to have them at a Community Mediation Centre (CMC). The CMC offers a neutral platform for Singaporeans to resolve community disputes amicably without having to go through legal proceedings. They can help with disputes involving:

  • Interest-free monetary disputes based on verbal agreements involving amounts under S$5,000
  • Display of unacceptable behaviour or conduct
  • Disagreements with living arrangements

Advantages of Resorting to Mediation Through CMC for Tenancy Disputes

These are a few reasons why you should consider mediating tenancy disputes at a CMC:

  • Confidential and Private: The identities of the parties and the discussions held during mediation are kept confidential and will not be shared outside the session.
  • Time-efficient: Mediation typically lasts only a few hours and can often be resolved in one or two sessions.
  • Cost-effective: The mediation service itself is free, with only a minimal administrative fee of S$5, which is paid by the complainant.
  • Flexible and Informal: Mediation encourages creative solutions, allowing parties to propose their own mutually beneficial resolutions.
  • Focus on Win-Win Outcomes: The goal of mediation is to meet the needs and interests of both parties, fostering a solution that benefits everyone involved.

Small Claims Tribunals

Turning to the Small Claims Tribunals (SCT) can be beneficial if your claims involve residential disputes under S$20,000. It can be an ideal dispute resolution option for tenancy issues regarding security deposits and unpaid rent. 

Should you plan to take your tenancy dispute to the Small Claims Tribunals, these are a few key points to keep in mind:

  • Lodging the claim: Landlords must submit their claim to the SCT, along with any relevant documents or evidence.
  • Fees: Filing a claim at the SCT requires a modest lodgment fee, which varies depending on whether you are a consumer or non-consumer. The fee starts at S$10 for consumers and S$50 for non-consumers.
  • Role of the Registrar and Referee: The SCT employs mediators (Registrars) to facilitate negotiations between parties and resolve the dispute through mediation. If mediation is unsuccessful, the case will be adjudicated by a Referee, who will make a legally binding decision based on the evidence presented.

The Advantages of File Complaints at Small Claims Tribunals

There are numerous advantages to resolving tenancy disputes through the SCT:

  • Accessibility: The SCT is specifically designed to be an accessible platform for landlords and tenants to resolve disputes. With a simplified process and a low filing fee, the SCT is a practical option for landlords who may not have the time, resources, or expertise to pursue formal court proceedings.
  • Cost-Effectiveness: The SCT offers an affordable means of resolving disputes. The filing fees do not cost as much as court fees, and there are no legal fees unless the parties choose to hire a lawyer. 
  • Less Formal: The SCT process is less formal than traditional court proceedings. There is no need for legal representation, and the environment is designed to be more approachable, allowing landlords and tenants to directly present their cases. 
  • Legally Binding Decisions: If mediation fails and the case goes to adjudication, the decision made by the SCT Referee is legally binding. This means that landlords can rely on the SCT’s judgement to enforce their claims and recover outstanding dues or damages.

Learn How to Manage Tenancy Disputes in CPD Courses in Singapore

Real estate agents can benefit greatly from expanding their knowledge of tenancy laws and dispute resolution through Continuing Professional Development (CPD) courses. These courses are designed to help agents stay up-to-date with real estate laws regarding tenancy and strengthen their conflict resolution skills. Furthermore, mastering these areas can enhance agents’ professional credibility and help them assist clients in navigating disputes. 

If you want to deepen your knowledge of Singapore’s tenancy laws, consider enrolling in CPD courses at Real Centre Network. In addition to providing the core Real Estate Salesperson (RES) courses, Real Centre Network offers CPD courses that cover critical areas such as tenancy law and mediation in real estate transactions. By gaining these essential skills, you not only improve your ability to manage real estate disputes but also position yourself as a trusted advisor in the industry.

For more real estate insights, check out the mistakes to avoid before signing leasing agreements.