In Singapore, there are many rules and restrictions when it comes to renting out your property. One of the biggest no-nos is subletting out your property via short term accommodation.
Although it is common in foreign countries to earn a quick buck with AirBNB it is not legal in Singapore.
A man was recently fined $1.16 Million after he was caught subletting 14 private units on various platforms for a short term stay.
Today Online reported that the man leased 14 units to sublet them and profit from the short term foreign travellers.
The units were located in the following locations
- River Valley Road
- Orchard Road
- Kiliney Road
- Robinson Road
- Keppel Bay
Biggest fine ever in Singapore history for such an offence
Urban Redevelopment Authority (URA) said that this is the biggest fine ever issued for such an offence.
57-year-old Simon Chan Chai Wan and his girlfriend 43-year-old Zhao Jing were both licensed real estate agents and posted a listing on Airbnb and HomeAway to advertise the availability of these short-term stay homes.
The total revenue that he make during the period of 2017 and 2018 was S$1,254,907.78.
Here is what URA wrote:
It is illegal for owners and tenants to rent out their properties for short-term accommodation. This includes renting them out as ‘hotels’, ‘hostels’, ‘motels’, ‘Bed and breakfast’, or ‘Homestays’ to short-term visitors, frequently done through online ‘home-sharing’ platforms.
Property owners who fail to exercise due diligence to safeguard their properties against misuse will be held responsible. Owners are also urged to regularly check on their properties to ensure that they are not rented out by tenants for short-term accommodation.
Under the Planning Act, any individual found guilty of engaging in short-term accommodation will minimally face a fine of up to $5,000. Those who are recalcitrant or engage in short-term accommodation at multiple properties will be taken to Court. To date, many such individuals have been charged in Court, resulting in the imposition of significantly heavier fines.