Property rules are pretty strict in Singapore. Every prospective landlord must be able to show that they’re legally allowed to sublet or rent out their properties.
Not doing so could land one in trouble with the law.
Simon Chan Chai Wan, 57, is guilty of one such crime. He along with his 43-year-old girlfriend, Zhao Jing, leased 14 rented properties and sublet them out for short-term accommodation without informing their owners.
The couple was able to earn S$1.25 million through their schemes.
He has thus received a fine of S$1.18 million, the highest ever given to a Singaporean found guilty of committing such a crime.
According to Channel NewsAsia (CNA), Chan pleaded guilty to nine charges under the Planning Act.
He was served a fine of S$1.18 million, the heaviest given to any Singaporean guilty of such a crime.
Zhao has received a fine of S$84,000 for her assistance in the scheme.
Court documents said Chan and Zhao were both operating as real estate agents at the time of the offence.
They were the directors of two companies as well, HTM Solutions and HTM Management, between 2016 and 2018. Chan was also previously the director of SNS Infotech Global.
He was thus able to lease numerous private residences via the three companies. The units were located in areas like River Valley Road, Orchard Road, Killiney Road, Robinson Road and Keppel Bay.
He then proceeded to sublet the units on platforms like Airbnb and HomeAway, which contain listings for apartments that guests can rent for a short stay.
Chan additionally convinced Zhao to enter tenancy agreements with the owners of two units.
Chan and Zhao would also refrain from informing the property owners their units were being leased out for short-term accommodation. According to court documents, they were also fully aware this was illegal.
Zhao furthermore assisted Chan in the setup and management of host accounts on the Airbnb platform. She posted listings for the units on the site as well.
Her first host account on the site was in 2016, under the name of ‘Jing’. She listed several units and would reportedly manage guest reservations, answer queries and update the calendar.
Zhao’s assistance was crucial to the operation of subletting the rented properties on Airbnb. Court documents state that with her help, Chan was able to solely handle matters outside of the accounts, such as the day-to-day running of the units.
Chan carried out the operation from 30 Jun 2017 to Jul 2018. He earned a total revenue of S$1,254,907.78 from the offence.
Zhao received a monthly salary of S$4,000 for her assistance in the scheme. She received an income of S$52,000 from 30 Jun 2017 to 3 Aug 2018.
The Urban Redevelopment Authority (URA) has urged property owners to remain vigilant of such illicit activities in Singapore.
“Property owners should also exercise due diligence to ensure that their properties are not used by their tenants for unauthorised purposes,” they emphasised.
The unauthorised subletting of apartments for short-term accommodation often results in a frequent flow of guests in and out of the property. This not only changes the residential character of the housing unit but also inconveniences neighbouring residents.
The URA has further said they will continue to take strong enforcement actions against offenders guilty of engaging in illegal subletting of renting properties.
With real estate agents now engaging in unlawful activities as well, it serves as a reminder for us to stay ever more cautious.
The illegal subletting of apartments without informing homeowners can cause a nuisance for our fellow residents, not to mention that it is against the law.
Property owners should thus take extra care from now on, so as to ensure their rented properties are not sublet against their will.
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Featured image adapted from Street Directory and Google Maps.
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