While the option to renew the clause is granted at the beginning of the lease, it can only be exercised by the tenant at the end of the lease. If the landlord or landlord`s agent uses the IEA`s default agreement, this should be correct. Your agent will then ensure that the lease is fair and impartial. I bought a unit with a lease, and the tenants want to terminate the lease because of the diplomatic clause. Due to cultural norms and public housing policy, Singapore`s rental market tends to be highly expatriate. This is the reason why most leases contain a withdrawal clause – also known as a diplomatic clause or minimum rental term. These are the typical terms of an exit clause: who can benefit from the clause: tenant (especially expatriate). Note: The sunset clause itself does not allow an owner to repossess a property without due process. If a situation complies with that indicated in the expiry clause, the owners should initiate a formal procedure (e.g. B prior written notification) if they so wish.

Annoying aspects of renting in Singapore from r/singapore In the first place, there is a loss of rental income. The search for a replacement tenant takes time and effort and if the property remains empty, it would be a considerable loss. To mitigate this, you can, as a tenant, look for a tenant to take care of your lease until the end of its term. However, before you search for a replacement tenant yourself, make sure the landlord agrees with this agreement and be prepared for the replacement tenant to pay the same rental amount. This can sometimes mean that the replacement tenant`s rent is subsidized until the lease is terminated. While most of the words rejected by “diplomacy” are keywords that elicit a sense of liberation and immunity that applies to a small number of elected officials, there is at least one term that refers to duties rather than one`s privileges. A diplomatic clause in your lease can make a difference, especially if you are the tenant. Let`s take a look at the different scenarios in which a diplomatic clause becomes indispensable.

Most two-year leases contain a diplomatic clause as a safety net for you, so in the unfortunate case of such cases, you will at least not have to worry about unpaid rent. Let`s see what a typical diplomatic clause would look like: the reason for this clause is that the landlord paid the full amount of a one-month agent commission for a 2-year lease, but if you terminate the lease by exercising the diplomatic clause and therefore you are not able to conclude the full 2 years, you will have to repay the proportional commission. Since the lessor agrees with the diplomatic clause, it will generally require a repayment clause that will be included in the lease. Renting in Singapore as a foreigner can sometimes be a bit daunting, as there have been a lot of complaints from tenants that renting in Singapore is usually more per owner. Before moving on to the terms and conditions in lease agreements, it would be helpful to have a brief understanding of the structure of a lease. As incomprehensible as the Treaties may seem, they have a logic. A landlord who incorporates the sunset clause into TA can exercise the clause to “release” the unit for a potentially more successful tenant, which could improve the frequency of visitors to the property. . . .