Given Singapore’s high housing costs, one could be tempted to try earning money through renting properties. One man did so, doing an illegal short-term rental business at 19 properties islandwide.
53-year-old Too Kim Lin entered numerous tenancy agreements using other people. He then proceeded to rent these 19 properties out to subtenants.
These short-term rentals lasted less than three months, which constitutes a crime in Singapore. Too took steps to evade detection and earned a revenue of S$1.47 million.
The court sentenced him to a fine of S$1.4 million, or a jail term of 142 weeks if he could not pay it.
According to Channel NewsAsia (CNA), Too Kim Lin searched websites for rental properties, using other people to enter into tenancy agreements for him.
He then sublet the units, advertising them on websites such as Airbnb and HomeAway. Guests such as tourists became subtenants at these properties, paying rent to Too.
With 85% of Singaporeans believing the government should regulate rent rates amidst high prices, it’s no surprise this was seen as a lucrative business opportunity.
Too rented these units out for less than three consecutive months, which is a crime in Singapore, according to the Urban Redevelopment Authority (URA). He did so at 19 properties, one of which was at the V on Shenton condominium.
Source: Peifeng Qiu on Google Maps
He even enlisted the help of four former helpers to run errands such as replenishing supplies in these units.
Clearly, Too knew he was doing something illegal. He took numerous steps to avoid being caught, including using at least seven different mobile numbers.
He also allegedly communicated with guests through an accomplice, to appear as someone else.
To avoid security, Too had guests meet him near the properties themselves, where he brought them to the rental unit via side entrances.
From 1 Feb 2018 to 30 Oct 2019, Too reportedly earned revenue of S$1.47 million from these 19 properties. A portion of that, which amounted to S$701,544, went to paying the initial leases for those very units.
Therefore, he still made a profit of around S$768,000.
Eventually, condo management at various locations received feedback on high visitor turnovers. They informed the property’s owners of the possibility of illegal subletting.
In court, Too pleaded guilty to 11 charges of leasing residential properties to guests for less than three consecutive months. The judge also took eight similar charges for the other properties into consideration.
The prosecution sought a fine ranging between S$1.54 million and S$1.76 million, intended to both remove his illegal profits and punish him for the crime itself.
Too’s lawyers, however, argued that he incurred expenses of S$410 per property every month for various utilities. Furthermore, they alleged that their client was not motivated by profit, noted 8world News.
The lawyers argued that Too owed much debt due to being laid off in 2018. On top of that, he had to pay S$7,000 in alimony monthly to his ex-wife, raise his two children, and pay for the care of his mother, who was suffering from dementia, in a nursing home.
As such, they requested a lower fine of S$756,860 instead.
The judge noted that no records existed for the alleged extra expenses. Additionally, the judge believed that the defendant held deliberate ambitions for the business, pointing to his numerous methods to avoid detection.
The judge ultimately sentenced Too to a S$1,428,000 fine on 7 Nov.
Should the defendant fail to pay the fine, he would instead be jailed. The defence alleged that Too was unlikely to be able to make the payment.
They requested for the judge to give one week’s jail for every S$10,000 worth of fines. The prosecution, on the other hand, requested one week’s jail for every S$8,800.
Eventually, the judge agreed with the defence, sentencing Too to 142 weeks’ jail, or roughly 2 years and 8 months.
However, Too reportedly intends to appeal against this sentence. The court has thus stayed his sentence pending the hearing of his appeal.
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Featured image adapted from UNStudio.
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