Man fined S$1.4 million for running illegal short-term rental business at 19 properties
Leasing a residential property to tenants presents a lucrative opportunity for generating passive income. However, the risks involved for landlords are substantial. Specifically, if occupants of a rental property engage in criminal or illicit activities, the landlord may be held accountable and face severe legal penalties, including imprisonment or financial restitution.
In light of the evolving preferences of seasoned travelers, home-sharing platforms, such as Airbnb, have become popular alternatives to traditional hotels, offering a more personalized and immersive experience. Nonetheless, it is crucial to note that the Singaporean government mandates a minimum rental period of three months for non-landed private properties and six months for Housing Development Board (HDB) flats. Given that HDB flats are government-subsidized housing, it is unlawful for landlords to rent out such properties.
It is incumbent upon landlords to conduct rigorous background checks on prospective tenants and to ensure that their rental units are not being utilized for unlawful pursuits. Vigilance in these matters, coupled with the appropriate measures to mitigate risk, is paramount for landlords seeking to maximize their returns while protecting their interests.