Leasing Procedures

Step 1: Letter of Intent (By Prospective Tenant)

Once the prospective tenant has ascertained the space required for his office needs, the broker will help initiate the lease negotiation process by submitting a Letter Of Intent to the landlord for acceptance. The Letter of Intent (LOI) stipulates the terms of the lease that the prospective tenant want from the landlord and the intention of the prospective to lease the space for his business. The landlord will take this opportunity to assess if the tenant is a suitable one for the space and will counter-offer/accept the terms of the Letter of Intent in return. A copy of company’s record from the Accounting and Corporate Regulatory Authority (ACRA) often accompanies the Letter of Intent (LOI).

Step 2: Letter of Offer (By Landlord)

A Letter of Offer will be issued once the landlord and tenants have agreed to the provisional terms of the lease. The prospective tenants are usually given a period to return the signed Letter of Offer along with a one-month deposit (non-refundable). The Letter of Offer is a legally binding agreement. Once signed, the tenant is provided with an exclusive possession from the date of possession.

Step 3: Tenancy Agreement (By Landlord)

After the Letter of Offer is signed, the tenancy agreement will be prepared for the prospective tenants to sign off. Most landlords follow the standard terms of a lease agreement and don’t want to vary too much from the usual terms although there’s always room for negotiation to include certain clauses subject to the landlord’s approval. When in doubt, prospective tenants should seek help from lawyers familiar with property laws in Singapore.

Step 4: Taking Possession

After the tenancy agreement is signed off along with a three-month security deposit and first month payment in advance, the tenant can now take possession of the premise and start renovation/refurbishment. It’s advisable to have public liability insurance in place once the tenant has taken possession.