ST : HDB to conduct checks on landlords

Jan 14, 2010

HDB to conduct checks on landlords

Home owners who flout sub-letting rule could be fined and even lose flats

By Joan Chew & Lester Kok

THE Housing Board will conduct routine inspections and seek feedback from residents and tenants to enforce a new rule on sub-letting.

It yesterday reminded owners that those who do not comply with the rule face a $3,000 fine.

Those who repeatedly fail to comply could also have their flats seized by the board.

Responding to queries from The Straits Times, an HDB spokesman said those who sub-let their flats without registering with the board will be guilty of 'unauthorised use of the flat'.

The HDB announced on Tuesday that owners of flats will have to register with the board within seven days of renting out a room.

The new ruling also requires home owners to provide a whole host of information, including details of their sub-tenant, the conditions of the sub-letting agreement, and even his job.

Other information required includes the rental charged each month, and how long the tenancy will last.

The rules apply to tenancies that begin after Feb 1. Those already sub-letting their flats have a six-month grace period to register with the HDB and provide the information needed.

The measure was announced after Parliament passed the Moneylenders (Amendment) Bill on Tuesday, introducing tougher penalties to curb the worsening loan-sharking problem.

Illegal moneylending and harassment cases have risen rapidly, with 18,645 cases reported last year, up from 11,879 in 2008 and 10,221 in 2006.

The new HDB rule seeks to better protect residents who fall victim to harassment by illegal moneylenders when borrowers who rent a room and move out give their old addresses to loan sharks.

Senior Minister of State for Law and Home Affairs Ho Peng Kee told Parliament the new rule would help trace borrowers who move from place to place to avoid loan sharks, leaving innocent new home owners or sub-tenants to be harassed.

An HDB survey in September 2008 showed there were about 45,000 flat owners who rented out rooms.

Reacting to the new rule, HDB home owner Sara Nadeson, 34, who is renting out a room for the first time, said she would comply.

She said she does not want unpleasant surprises, such as the dreaded O$P$ - loan shark shorthand for 'owe money, pay money' - spray-painted outside her home.

Others, however, felt the detailed information they will have to supply the HDB made the new rule too onerous to comply with.

Some said they were willing to risk the $3,000 fine if their tenants were friends or people they knew well.

The owner of a four-room Jurong flat said: 'My tenant is a personal friend, and I have confidence that he will not get me in trouble as a result of loan-sharking activities.'

However, the HDB spokesman cautioned home owners against taking a cavalier attitude to the new rule.

Mr Baey Yam Keng, an MP for Tanjong Pagar GRC, said it would 'complete the chain of information' needed by the authorities to crack down on loan shark activities.

joanchew@sph.com.sg

lesterk@sph.com.sg


--------------------------------------------------------------------------------

Details required

NEW information required by HDB of flat owners who sub-let rooms:

· Sub-letting start/expiry dates

· Number of rooms sub-let

· Rental per month

· Name of sub-tenant

· Household structure of sub-tenant (family or individual)

· Identification number of sub-tenant

· Nationality, citizenship and ethnicity of sub-tenant

· Work pass type (for example, work permit, employment pass)

· Work sector (service sector, construction, manufacturing, etc)

· Reasons for sub-letting