Why the tenancy agreement matters so much
Your tenancy agreement (TA) is the contract that governs your whole time in the unit — what you pay, what you can and can't do, who's responsible for what, and what happens when things change. Once you sign it, you're bound by it.
Most of the serious problems I see tenants run into come not from the rent, but from clauses they didn't fully understand before signing. So it's worth knowing the key ones. I'm not a lawyer, and for the legal specifics you should get a conveyancing lawyer to review — but here's what to look out for.
The clauses I always check
These are the clauses that most affect your business, your cash, and your flexibility:
- Rent and review — how much, when it's paid, and how often it's reviewed (often every 2–3 years)
- Lease term and structure — the initial term plus any option to renew (e.g. 2+2 or 3+3)
- Security deposit — usually a few months' rent, and the conditions for getting it back
- Permitted use — the specific use you're allowed to run in the unit (must match your actual business and the zoning)
- Subletting and assignment — whether you can sublet or transfer the lease, and what consent is needed
- Repair and maintenance — who handles structural vs internal repairs, air-con, and fittings
- Fitting-out and alterations — what changes you can make, and what approvals you need
- Utilities, property tax and outgoings — who pays for what
- Termination and early exit — what happens if you need to leave early, and any penalties
- Handover condition — the state the unit must be in when you move in and when you leave
Permitted use: the clause people overlook
The 'permitted use' clause says exactly what business activity you're allowed to run in the unit. It sounds like a formality, but it's one of the most important clauses. If your actual business doesn't match the permitted use — or the zoning — you can run into trouble with the landlord, the building management, or the authorities.
The contractual wording of the permitted-use clause may be negotiated, but it must stay within the property's approved use and any applicable authority or landlord conditions — you can't contract around URA, JTC or other planning restrictions. This is why I always check that the permitted use matches your real business activity and the unit's approved zoning before you sign. A cheap unit with the wrong permitted use is no deal at all.
Subletting and assignment: think ahead
The subletting clause says whether you can let another business use part of your space. Most industrial leases require the landlord's written consent, and for JTC units, JTC's approval too. Some leases prohibit subletting entirely.
Even if you don't plan to sublet now, think about whether you might need to in future — say you downsize, or share a bigger unit. If subletting matters to you, I'll make sure the clause allows for it (with consent) before you commit.
Stamp duty: it's a legal requirement
Once the TA is signed, it must be stamped. Stamp duty on a lease is payable to IRAS. Where the average annual rent exceeds $1,000, IRAS currently charges 0.4% of the total rent for leases of 4 years or less; for leases over 4 years or of indefinite term, 0.4% × 4 × the average annual rent. Average annual rent includes relevant maintenance or service charges and other consideration, but excludes GST. Under the Stamp Duties Act, a chargeable instrument that is not duly stamped generally cannot be admitted in evidence until the required duty and any penalty are paid — so stamping isn't optional.
Usually the tenant pays the stamp duty, but who pays what can be negotiated. I'll make sure it's clear who's responsible, and that the lease gets stamped properly.
How I help with the TA
I'll walk you through every clause that affects your business and your money, in plain English, before you sign. For the legal fine print, I'll recommend you get a conveyancing lawyer to review — and I'll coordinate so nothing falls through the cracks.
The goal is simple: you understand what you're signing, the terms work for your business, and there are no nasty surprises halfway through your lease.