Renting in Singapore as a foreigner can sometimes be a bit daunting as there have been many complaints from tenants that rental in Singapore is generally more pro landlord.
Annoying aspects of renting in Singapore from r/singapore
Not to mention, if this is your first time renting you are bound to come across a list of unfamiliar terms in your Tenancy Agreement (TA). So if you have already viewed a property and managed to secure a price you are comfortable with, it is now time to go through all the rental clauses in the TA (or make sure that your needs are adequately protected). One of the most important terms that you will have to take note of is the diplomatic clause.
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So what is the diplomatic clause exactly?
As you would know, no job in the world is completely secure or permanent. So if you managed to secure a job in Singapore, there is every possibility as well that you might get transferred out or worse yet, fired! In such circumstances, having to cover the rest of your rental contract will surely be a pain that you would not want to deal with. Thus the importance of the diplomatic clause!
Most tenancy agreements of two years will include a diplomatic clause as a safety net for you, so in the unfortunate event that such cases do occur, at the very least you will not have to worry about unpaid rent. Let us look at what a typical diplomatic clause would appear as:
Provided the Tenant has occupied the premises for a minimum period of TWELVE (12) months, the Tenant may exercise the diplomatic clause by notifying the Landlord TWO (02) calendar month notice in writing of the Tenant’s intention to terminate the Tenancy or TWO (02) month rent in lieu of such notice if the occupier of the premises and employee of the Tenant shall be required by the Tenant to leave Singapore permanently on a job transfer or if the said occupier’s employment with the said Tenant is terminated for any reason whatsoever. Provided always that the documentary evidence shall accompany the written notice providing the event relied up by the Tenant in the said written notice. Any pre-mature termination that does not satisfy the conditions to exercise the Diplomatic Clause will result in forfeiture of the Security Deposit, and the Landlord will reserve the rights for further compensation.
If that is too many words for you to handle, let us break it down.
- If you are have to leave Singapore due to a job transfer or terminated employment, you are able to exercise the diplomatic clause
- You have to give at least 2 months notice or you will have to pay the 2 months notice in rent
- You will have to stay for a minimum of 12 months in order for the diplomatic clause to kick in
- You will need to provide evidence to prove the reason for relocation/termination
So the important point you will have to take note here is the minimum stay of 12 months. Most tenancy agreements will have this minimum stay as this is of course to protect the landlords interest as well. This basically means you can only give notice after 12 months coupled with the 2 months notice so 14 months in all. So the timeline would be something like:
Signed tenancy agreement: 10th January 2018
Notice of termination: Before 10th December 2018
Handover: Before 10th February 2019
There is also usually an additional clause inserted along with a diplomatic clause called the reimbursement clause. This just means that you as the tenant would be liable to reimburse the landlord of the agent fees on a pro-rata basis. Again, depending on how desperate the landlord is to rent out the unit, you can always try to negotiate on this.
What other variations of the diplomatic clause are there?
It is also worth pointing out here that there are cases where a landlord will accept a diplomatic clause on a 1 year lease (or even 2). This means a minimum of 6 month stay instead of 12. The best case scenario would be a 6+2 month diplomatic clause on a 2 year lease. Of course not every landlord will accept this, but it is always worth trying to negotiate for better terms!
Another point that you should take note of is during the negotiation of the TA and if you discover that there is no diplomatic clause included from the beginning, it might be a warning sign of a landlord that is not completely forthcoming or reasonable in any dealings. Of course, it could always be a genuine lapse but chances are if the landlord is trying to squeeze you from the beginning it can only get worse in any negotiations at the end. So choose wisely!
As always, feel free to leave a comment below or you can always reach us at stories@stackedhomes.com! Check out our rental guide if you want to make your rental journey in Singapore as fuss free as possible! If you are worried about your rental deposit here is our take on it!
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Frequently asked questions
What is a diplomatic clause in a Singapore rental agreement?
How much notice do I need to give to exercise the diplomatic clause in Singapore?
Can the diplomatic clause be included in a one-year lease in Singapore?
What happens if I terminate my lease early without meeting the diplomatic clause conditions?
Is there an additional clause related to fees when exercising the diplomatic clause?
Why should I check if a tenancy agreement includes a diplomatic clause before signing?
12 Comments
Hi! I was wondering if the diplomatic clause would cover the situation where the tenant voluntarily resigns, instead of having his employment terminated by the employer?
Hi My friend had contracted which denoting the tenant shall compensate 3 months rental fee at least regardless of the stay duration. Now he need to leave Singapore and relocate to China soon and having trouble due to this clause. is there any legal protection to protect tenant against those unfair contract?
Hi!
I’ve purchased a unit with tenancy, and the tenants would like to terminate the tenancy early based on the diplomatic clause.
There is also a reimbursement agent fee clause in the tenancy agreement. May I check if the tenants are required to pay us the commission fees on a pro-rated basis, please?
Thanks so much!
I have had an initial 2 year lease and then two extensions of one year each on the same property. The Landlord now wants to issue another 2 year lease when it is renewed and insist on the minimum 12 months before the Diplomatic Clause kicks in. Can the Landlord insist on this ?
Hi, if there will be 2 tenants who signed the Letter of Intent, would that mean the diplomatic clause will only be applicable if both the signatories needs to relocate?
Hi Sean,
The diplomatic clause in my lease agreement is worded as under.
“Provided the Tenant has occupied the premises for a period of Six (06) months, the Tenant may exercise the diplomatic clause by giving the Landlord One (01) month notice of the Tenant’s intention to terminate the Tenancy or One (01) month’s rent in lieu of such notice if the Tenant shall be required to leave Singapore permanently or the Tenant’s employment is terminated for any reason whatsoever. The said notice must be accompanied by documentary evidence providing the event relied upon by the Tenant in the notice.”
If the lease was signed on 10-Jan-22 , then the 6th month would fall on 10-Jul-22. The tenant wishes to depart permanently Singapore on 10-May-22 and he has served me notice on 02-March-22.
Does this mean that,
(1) the rent would be payable till 10-May-22 and he will forfeit the security deposit ( equal to one month rent) only?
OR
(2) rent would be payable till 10-Jul-22 (6th month) even though he vacates on 10-May-22, but the security deposit can be offset from the rent in his favour if there is no dispute on the same.
Thanks
Hi Ian, question on the diplomatic clause applicability. We have been in the same property for nearly 5 years, we renewed just under 3 years ago, and at the end of the 2 year period requested an extension for 1 further year. Now we are being moved back to Australia and whilst its 1 month shy of the year, requested to invoke the diplomatic clause. I am being told by the landlord this doesn’t apply because we haven’t done a year, but I would have thought our 2 years previously would count?
How does the diplomatic clause work for foreign students? What are the relevant proofs they should be showing the landlord if they have decided to invoke diplomatic clause?
Hi….
As I am no longer working here
I already paid rent and want to waive off security deposit as damage but the landlord is asking to pay one more month rent additional to deposit and also I have paid agent fee in d beginning…the clause says security deposit and balance lease to be paid at early termination…is there any way
What if tenant isn’t comfortable with the landlord. Also in my agreement it’s not mentioned that I can only exercise it after minimum lease time; no time is mentioned
When does the diplomatic clause start. I have not taken procession of the rental and I am being transferred back to the states