3-room HDB flat in Bidadari rented out for $4,100, unit just 2 years old

While some dream of renting out their HDB flat to earn some passive income, they're typically unable to do so until the Minimum Occupation Period (MOP) of the flat is up. 

However, one homeowner managed to rent out his Bidadari HDB flat even though his unit had only been completed around two years ago, reported Shin Min Daily News. 

The three-room flat at Alkaff Oasis was rented out for $4,100 a month. 

According to information from HDB's website, rental transactions for three-room HDB flats in nearby estates such as Potong Pasir range from $1,800 to $3,500 for the month of March this year. 

HDB told the Chinese daily that the unit was approved for rent as the owner has been living overseas for a long period. 

Typically, while one can only rent out their HDB flat after MOP, HDB can make an exception if the homeowner is working overseas. The homeowner would have to appeal to the HDB for approval.

According to HDB's website, homeowners that are overseas while their HDB flat is rented out must appoint an attorney to manage the flat on their behalf. The attorney that has been appointed cannot be a tenant of the flat.

HDB also told Shin Min Daily News that in the past three years, nearly 120,000 HDB flats were approved to be rented out as an entire unit, and less than 1.5% of flats approved for rental fall under this scenario. 

Can only rent out flat after MOP

According to HDB, homeowners can rent out their flats only after fulfilling the five-year MOP. 

However, if the flat is non-subsidised (that is, bought from the open market without a housing grant) and purchased before Aug 30, 2010, the MOP would be three years instead. 

HDB flats are meant for homeowners to live in, and the housing authority said they "take a very serious view" of unauthorised rentals and "will not hesitate to take action against errant flat owners who flout the rules". 

They also advised that if the homeowner has gotten approval to rent out their flat, the owner "should conduct regular checks to ensure that the rules and regulations are met". 

ALSO READ: Subletting HDB flats? These 5 assumptions could land you in trouble

melissateo@asiaone.com