With burgeoning rent prices in Singapore, those with extra space may be tempted to maximise the space and lease it out.
However, before doing so, it is worth doing thorough checks on the permissible modifications, or you might get into trouble with the law.
A shop owner in Yishun landed themselves in hot water after modifying the upper floor of their shophouse into four rooms for rent without approval.
The authorities have since issued a warning letter to the shop owner.
The owner of a shophouse at 731 Yishun Street 72 converted the upper floor of their shop into four ‘studio units’ for rent. They did so without approval from the authorities.
Listings of the unit were put up on property portals PropertyGuru and 99.co. However, both listings are no longer available at press time.
The unit was split into four bedrooms and three toilets. They include a fully-furnished double room with a connecting bathroom, a double room with a connecting bathroom and kitchen, and two single rooms with a shared toilet.
Source: 99.co
According to Shin Min Daily News, the monthly rent indicated for each room was S$2,900, S$2,600, S$2,400, and S$2,100, respectively. If all the rooms were occupied, the shopkeeper would have received a total of S$10,000 in rent earnings a month.
The S$2,600 room had already been leased out before the listings were taken down.
The fully furnished room had amenities like an air conditioner, a small kitchen area and a washing machine.
Source: 99.co
Shin Min Daily News reported that the space was a three-room living quarter before the remodelling.
Source: 99.co
Responding to queries from MS News, the Housing Development Board (HDB) said in a statement that the space is not an HDB flat but is instead living quarters above the shop.
Shopkeepers are required to obtain approval before they can rent out the living space.
They must also seek HDB’s approval before carrying out any renovation or additional works. These works include the construction of non-structural partitions to create additional rooms. By doing such works, the shop owner has committed a lease infringement.
HDB has issued the shop owner a written warning and is investigating the matter. They have also ordered the owner to submit an application for approval of the remodelling project.
The shop owner has since taken down their listing. Their application is now pending approval by HDB.
If HDB rejects the application, the owner must demolish the additions at their own expense.
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Featured image adapted from Google Maps and 99.co.
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