The Rights and Responsibilities of Landlords and Tenants in Retail Leasing in Singapore

Retail leasing in Singapore is governed by tenancy agreements and the Code of Conduct for Leasing Retail Premises, which aims to ensure fairness and transparency between landlords and tenants. Understanding these rights and responsibilities helps both parties avoid disputes and maintain productive relationships.

Landlord Rights in Retail Leasing

Right to Set Rental Terms
Landlords can determine rental amounts, lease durations, and security deposits, provided they comply with the Code of Conduct.
Right to Enforce Lease Terms
Landlords may enforce clauses such as rent payment deadlines, exclusivity clauses, or subletting restrictions as outlined in the lease agreement.
Right to Property Access
Landlords can access the premises for maintenance or inspections, but they must provide prior notice unless it’s an emergency.

Landlord Responsibilities in Retail Leasing

Maintain the Property
Landlords must ensure that the property is safe, clean, and functional for retail operations. This includes addressing structural issues or faulty utilities promptly.
Transparency in Agreements
Under the Code, landlords are required to disclose all fees (e.g., advertising charges) upfront and provide a checklist of key tenancy terms to tenants during negotiations (source).
Adherence to Fair Practices
Landlords must comply with guidelines on rental structures, such as avoiding “whichever is higher” formulas unless agreed upon by both parties (source).

Tenant Rights in Retail Leasing

Right to Transparent Agreements
Tenants are entitled to clear lease terms, including rent structures, security deposit limits (capped at three months’ gross rent), and maintenance obligations (source).
Right to Dispute Resolution
Tenants can escalate disputes to the Singapore Mediation Centre or the Fair Tenancy Industry Committee (FTIC) for mediation if disagreements arise during or after lease negotiations (source).
Right to Pre-Termination Options
In cases of material adverse changes (e.g., redevelopment works), tenants may terminate leases early under specific conditions outlined in the Code (source).

Tenant Responsibilities in Retail Leasing

Pay Rent Timely
Tenants must adhere to agreed payment schedules to avoid penalties or lease termination.
Maintain the Premises
Tenants are responsible for keeping their rented space clean and reporting maintenance issues promptly.
Comply with Lease Terms
Tenants must honor clauses such as restrictions on subletting or alterations without landlord approval (source).

Dispute Resolution Mechanisms Under the Code of Conduct

The Code provides a structured process for resolving disputes:

Mediation: Either party may refer disputes to the FTIC or Singapore Mediation Centre for resolution within 14 days of signing the agreement (source).
Compliance Monitoring: Non-compliance with mandatory terms can result in public “naming and shaming” by FTIC (source).

Conclusion

Understanding the rights and responsibilities outlined in Singapore’s retail leasing framework is crucial for landlords and tenants alike. The Code of Conduct ensures fairness, transparency, and accountability, fostering healthier landlord-tenant relationships. For additional guidance, consult resources like Singapore Legal Advice or the Ministry of Trade and Industry.

Empowering Businesses with SGTUFF

At SGTUFF, we believe in creating a level playing field for businesses in Singapore. Whether you’re a tenant navigating leasing challenges or an SME striving for growth, we provide resources and insights to help you succeed.

Here’s how you can get started:

Become a Member: Unlock exclusive tools and networking opportunities with our Membership Plans.
Learn More: Gain practical insights into fair tenancy practices with our guide: Master the Code of Conduct for Retail Leasing.