Tenant finds a unit and makes an offer to rent it.
Tenant gives a Letter-of-Intent with a cheque for 1 month rental as Goodfaith Deposit. In the Letter-of-Intent, all requests such as level of furnishing, date of handover of keys, etc are spelled out.
If offer is less than what the owner originally asked for, it will then be subjected to acceptance. Further negotiation may result.
If owner accepts the offer, the Goodfaith Deposit will be handed to owner and owner will countersign the Letter-of-Intent.
Should tenant backs out the deal after that, the Goodfaith Deposit will be forfeited.
The Tenancy Agreement is then drafted and subject to both parties’ agreement.
Upon signing of the Tenancy Agreement, the tenant will have to give the 1st month advance rental. The previous 1 month rental will be used as a Security Deposit which will be refunded upon termination of tenancy. In the case of two-year lease, another additional 1 month rental will be required.
At this point, any payment of commission to the agent, if applicable, is made.
The Tenancy Agreement will be stamped, with the owner and tenant keeping a copy each. The stamping fee will be borne by the tenant.
The tenant has to apply for water, electricity, gas supply, and telephone line. The setup and monthly charges for such services are payable by the tenant.
When handling over the keys, be sure to go through the Inventory List that every item is accounted for. Any missing / damaged item should be checked with the owner’s acknowledgement. In this way, the tenant will not be liable when the lease matures.