Leasing Costs

Administrative & Legal Fees

The tenant is usually required to pay for the preparation of the lease documentation. This can be in the form of administrative fee or legal fee that is incurred in the process of preparing the lease documents which includes Letter Of Offer and Tenancy Agreement. This fee varies from different landlord.

Air Conditioning

Many office buildings in Singapore are served by centralised air-conditioning system which operates during office working hours. Normally provided by the landlords during normal office hours.

Weekdays: 8.00am to 5.30 – 6.00pm
Saturdays: 8.00am to 1.00pm


The cost of the provision of the centralised air con is usually factored into the rental fees.For companies that will require Air-conditioning after office hours, centralised air con it can be supplied on a chargeable basis and the cost ranges from $55 to $90 per hour (subject to GST).


Tenants can also consider installing individual air handling unit and tapping into the landlords chilled water supply. Costs are charged per ton of chilled water. Alternatively, tenants install their own split unit/condenser but not all buildings will allow external fittings to their buildings due to space constraint.

Cleaning or Maintenance

The tenant is responsible for cleanliness and maintenance of the office premise that they are occupying. The landlords will ensure the upkeep the maintenance and cleanliness of the exterior of the premises and common areas such as pantry, toilet, lift lobby and common walkway.
The cost of the maintenance fee is usually included in the agreed rental and it is common to find the breakdown of the agreed rental in the Letter of Offer and the Tenancy Agreement.

Goods and Services Tax (GST)

The tenant is usually required to pay GST with the current rate at 7% in respect of the gross rent or other sums payable under the lease. GST is similar to Valued Added Tax (VAT) in other countries.

Property Tax

Currently, the landlord is responsible for the paying the base property tax at 10% for all properties. The calculation is based on the Annual Value x 10%.
It is common to find the provision in the lease agreement to allow landlord to recover the additional property tax due to any increase in property tax attributable to the premises from the tenant, levied by Inland Revenue Authority of Singapore (IRAs) during the lease term. For more information, please refer to IRAS Website: http://www.iras.gov.sg/irasHome/page04.aspx?id=2094#2

Public Liability Insurance

  • Fitting-Out
The tenant is expected to maintain a comprehensive public liability insurance against unforeseen claims for personal injury, death or property damage or loss arising out of the tenant’s fitting-out works in the amount specified by the landlord for the entire duration of the tenant’s fitting-out works.
The policy is usually taken out and maintained at the tenant’s cost with a reputable insurance company in Singapore, naming the landlord and the tenant’s contractors as co-insured parties.


  • Lease Term

The tenant is expected to maintain a comprehensive public liability insurance policy against claims for personal injury, death or property damage or loss arising out of all operations of the tenant in the premises, for an amount specified by the landlord. The policy is usually required to be held in joint names of the landlord and the tenant with a reputable insurance company in Singapore and at tenant’s cost. This will be the same insurance for tenants that have high value items or goods that are stored within the premise; they will have to get substantial insurance coverage in the event of unforeseen circumstances.

Stamp Duty

Stamp Duty is applicable and is payable on all lease documents which includes:

  • Lease or Tenancy Agreement or Agreement for Lease to let or sublet the entire property or part of a property
  • Agreement to renew or extend the lease
  • Agreement for Variation of Lease
  • Acceptance to the Letter of Offer
  • Any written agreement pertaining to any property leasing transaction
The tenant/lessee is responsible for the cost of the stamp duty and must be paid within 14 days from the date of execution of the lease document. You may wish to visit the Inland Revenue Authority of Singapore (IRAS) for more information.

Stamp duty is calculated as follow:

Lease Period and Rent Lease Duty Rates
  • Where Average Annual Rent (AAR) does not exceed $1,000
  • Exempted
  • Lease period of 4 years or less
  • 0.4% of total rent for the period of the lease
  • Lease period of more than 4 years or for any indefinite term
  • 0.4% of 4 times the AAR for the period of the lease

Illustrations
(a) For documents dated on and after 22 February 2014 where lease period is 4 years or less

Lease Period and Rent Lease Duty Rates
  • 3 years at $10,000 per month
  • Total rent = $10,000 x 36 = $360,000
    Lease duty = 0.4% x $360,000= $1,440

(b) For documents dated on and after 22 February 2014 where lease period is more than 4 years

Lease Period and Rent Lease Duty Rates
  • 5 years at $8,000 per month
  • Average annual rent: $8,000 x 12 = $96,000
    4 times of the average annual rent: $96,000 x 4 = $384,000
    Lease duty: 0.4% x $384,000 = $1,536 (rounded down to the nearest dollar)

Utilities & Telecommunication

The tenant is required to pay for their own utilities such as electricity, telecommunication and Internet bills. This includes all initial connection and installation costs. For most office building where there are centralized air-con, the cost of the air-conditioning is inclusive in the rental.

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