Tenancy Agreement & Stamp Duty in Singapore, Explained

The tenancy agreement is where your rental really lives or dies. Get the clauses right and stamp it properly, and the rest of the tenancy runs smoothly; skip the detail and you can lose money on your deposit or get caught out by penalties. This guide explains the clauses that actually matter and exactly how rental stamp duty works.

What a tenancy agreement is for

A tenancy agreement (TA) is the contract between you and the landlord. It sets out the rent, the term, the deposit, and the rights and responsibilities of each side. It protects both of you — but only if you read it before signing and understand what you’re agreeing to. Never sign a TA you haven’t read, and never let anyone rush you past the clauses below.

The clauses that matter

• Deposit & advance rent: usually one month’s deposit for a one-year lease, or two months for a two-year lease, plus one month’s advance. The agreement should spell out the conditions for the deposit’s return.
• Diplomatic clause: in two-year leases, this lets you end the lease early (typically after the first 12 months, with two months’ notice) if you have to leave Singapore. Essential if your stay is uncertain.
• Minor repairs clause: tenants often cover repairs under a set amount per incident (commonly around S$150). Check the exact figure so you know where your responsibility ends.
• Aircon servicing: commonly the tenant’s responsibility — budget for quarterly servicing and keep the receipts.
• Reinstatement: the condition you must return the unit in at the end, fair wear and tear excepted.
• Landlord’s obligations: major repairs and structural issues, and ensuring you have quiet enjoyment of the property.

How rental stamp duty works

Rental stamp duty is 0.4% of the total rent over the lease term. Leases of four years or less are stamped on the full rent; longer leases use the four-year equivalent. As a worked example, S$3,000 a month over 12 months is S$36,000 of total rent, so the stamp duty is about S$144. It’s paid to IRAS via e-Stamping within 14 days of signing, and late stamping carries penalties (rising the longer you leave it). The tenant usually pays, though both parties are jointly liable for ensuring the agreement is stamped. Keep the stamp certificate with your copy of the TA.

Who pays for what during the tenancy

A frequent source of confusion is repairs. The typical split is: the tenant handles minor repairs and consumables up to the stated cap and keeps the aircon serviced; the landlord handles major repairs, structural issues and fair-wear-and-tear replacements. When something breaks, check the TA before calling a tradesperson, and keep receipts either way — our guide to electrician, plumber and handyman costs helps you judge a fair price.

Protect your deposit from day one

Your deposit is most at risk at move-out, but you protect it at move-in. On handover, do a joint inventory, photograph everything (including existing defects), and get those defects acknowledged in writing. At the end of the tenancy, this is your evidence against unfair deductions. Our guide to end-of-tenancy cleaning and getting your deposit back covers the full move-out process.

Renewing or ending the lease

As the lease nears its end, you’ll either renew (often with a fresh negotiation on rent), invoke the diplomatic clause if you’re leaving, or move on. Give proper notice as specified in the TA, agree the handover date, and plan the move-out clean and inventory check. If you’re renewing, a new TA is usually stamped again for the new term.

Common pitfalls

Watch for: signing without reading the minor-repairs cap and then being surprised by repair bills; forgetting to stamp within 14 days and incurring a penalty; not documenting the unit’s condition at move-in; and vague clauses about what’s included. A clear, properly-stamped TA with move-in photos is your best protection.

Where this fits in the process

The tenancy agreement comes near the end of the renting journey — after you’ve found and verified a unit. If you’re at the start, our step-by-step guide to renting an HDB flat walks you through everything up to signing, and the HDB vs Condo cost comparison helps you budget for the deposit, agent fee and stamp duty. Get the agreement right, stamp it on time, and document the handover — and your tenancy, and your deposit, are well protected.

Fixed-term vs the diplomatic clause

Most tenancies are fixed one- or two-year terms. A one-year lease is simpler and more flexible if your plans are uncertain, though landlords sometimes prefer (and price better for) a two-year commitment. If you sign a two-year lease, the diplomatic clause is your safety net — insist on it if there’s any chance you’ll leave Singapore, as it lets you exit after the first year with notice. Without it, breaking a lease early can mean forfeiting your deposit or being liable for the remaining rent, so read the early-termination terms carefully before you commit to a longer lease.

How to actually stamp the agreement

Stamping is done online through IRAS’s e-Stamping portal. You (or your agent) enter the tenancy details — the rent, the term and the dates — and the system calculates the 0.4% duty for you to pay. Do this within 14 days of signing to avoid penalties, and keep the stamp certificate with your copy of the agreement. It’s a small, quick task that’s easy to forget in the rush of moving, so put it on your move-in checklist. If you’re using an agent, confirm who’s handling the stamping so it doesn’t fall through the cracks.

A quick pre-signing checklist

Before you sign any tenancy agreement, confirm: the rent and what it includes; the deposit and the conditions for its return; the lease term and (for two-year leases) the diplomatic clause; the minor-repairs cap; who services the aircon; the reinstatement condition; and that the landlord’s name matches the proof of ownership. Read the whole document, ask about anything unclear, and don’t let anyone rush you. A clear, properly-stamped agreement with documented handover condition is the foundation of a trouble-free tenancy and a full deposit return.

Related guides: ABSD & BSD Explained · Renewing Your Lease