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Monday, February 8, 2010

ST : Rental disputes on the rise

Feb 7, 2010

Rental disputes on the rise

More tenants have been filing claims against landlords over contract issues

By Teh Joo Lin



Mr Ashirafur, 37, and his wife Hushne ana Bagum, 30, in a room at a friend's flat. They were forced to leave their rental flat in Yishun last week. -- PHOTO: CAROLINE CHIA

Vacate the flat at once, project supervisor Ashirafur Rahaman Khan said he was told by a group of six people just before midnight.

It happened more than a week ago, the 37-year-old said. He was with his wife in their rented flat's corridor in Yishun Street 81.

His wife, eight months pregnant and who had recently flown in from Bangladesh, was exercising in the corridor.

The group of six men and women who confronted the couple included the landlord and his son.

'One of the men said I didn't pay my rent, so I had to move out. But I had already paid for the month and even gave some advance payment,' said the permanent resident, who rented the flat for $1,400 a month with a fellow tenant who was not present during the encounter.

Part of the group then entered the flat, saying they were removing the furniture.

Seeing his wife agitated, Mr Ashirafur then agreed to leave. 'I said, 'Don't touch the furniture. We'll move it ourselves',' he said.

So in the wee hours of the morning, the flat's occupants scrambled to find lodging with friends, Mr Ashirafur said.

When contacted, the landlord's son, who did not give his name, said it was his father who had decided on the course of action.

But he said: 'Let's say you rented a house. If anyone else comes (to stay), the owner should be informed.'

Mr Ashirafur told The Sunday Times his wife and his sister had flown in from Bangladesh. His sister had come along to take care of her.

He said his next move is to go to the Small Claims Tribunal, taking along his tenancy agreement, which states that one month's notice is required for a mutually agreed termination of tenancy.

In recent years, more tenants - and to a lesser extent, landlords - have approached the tribunal for help to settle rental disputes.

This increase took place after it extended its jurisdiction in February 2006 to include disagreements on contracts for homes rented out for two years or less.

The tribunal was set up in 1985 to resolve small claims between consumers and suppliers.

Last year, 1,349 rental disagreement claims were lodged, more than three times the 401 claims filed in 2006. In 2008, 1,137 claims were lodged.

The majority of such claims - 84 per cent of last year's cases, for example - are filed by tenants, statistics from the Subordinate Courts showed.

Prior to 2006, such aggrieved parties settled disputes such as unpaid rents or leaky ceilings between themselves or through the courts - a time-consuming and usually expensive process.

The Small Claims Tribunal handles cases involving sums of up to $10,000, though this limit can be raised to $20,000 if the parties agree.

Once a claim is lodged, the tribunal arranges a consultation before a registrar who will mediate the claim. The case goes to a hearing if there is no settlement during the meeting.

The time taken to resolve a claim depends on the nature and circumstances of each case, said the Subordinate Courts' spokesman.

From the date of filing to the first consultation, the waiting period is usually between 10 and 14 days. From the final consultation to the hearing, the waiting period is usually within 10 working days.

When contacted, a Housing Board spokesman said it advises flat owners and tenants to settle their differences amicably when disputes come to its attention.

'HDB will usually advise the complainant to lodge a claim with the Small Claims Tribunal. If mediation is not an option, the complainant may choose to take a private suit against the other party,' she said.

The spokesman added that common disputes included issues over payment of rental, forfeiture of deposits and the termination of tenancies without sufficient notice.

Various types of rental disputes have hit the news in the past several years. At times, tenants returned to their flats only to find the locks changed.

Landlords have also suffered. When the economy dipped last year, tenants reportedly skipped town without paying the rent. They left the keys in the flats' letterboxes.

'Nowadays, such cases are common. Why? Because the tenant can't afford to pay, or the landlord has some reasons to get back his place and finds an excuse,' said Mr Andrew Tan, a senior division director from real estate agency Dennis Wee Group.

Rental agents who spoke to The Sunday Times said tenants and landlords should exercise due diligence and abide by proper tenancy procedures - to protect themselves if a dispute arises.

For example, tenants should ensure that their landlords are the actual owners of the flats and have approval to rent the units out. Landlords, on their part, should check their tenants' particulars.

Proper tenancy agreements should be drawn up, setting out detailed terms and conditions. Stamp duty has to be paid too.

'If everything is done in the right manner, the tenant should have no fear at all,' said Mr Richard Sim, an agent with real estate agency ERA.

Mr Tan also advised tenants to pay the monthly rental using bank transfers, so 'there's a record'.

'It's not advisable to pay cash. Even if you had written a receipt, the owner can say he didn't sign it,' he said.

Above all, said ERA agent Paul Ravie, tenants and landlords must honour the tenancy agreement.

'This is an important document, but many people don't really take it as a serious, binding contract,' he said, adding that agents must take care to explain the terms to both parties ahead of the signing.

joolin@sph.com.sg


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How to make a small claim

· Before lodging a claim, the claimant should ensure he has the correct name and address of the person he intends to make the claim against. He may also wish to ensure that the party he is claiming against is not a bankrupt.

· Where possible, mediation should be attempted before going to the tribunal. Both the claimant and the other party might try to resolve the matter themselves, or approach agencies such as the Community Mediation Centre.

· All claims must be lodged within one year. To lodge a claim, apart from submitting copies of the claim form, the claimant must submit a copy of the tenancy agreement and any other supporting written documents.

· It costs a tenant $10 to lodge a claim of up to $5,000, and $20 if the claim is more than $5,000 and up to $10,000. For a landlord, the amounts are $50 and $100 respectively.

Teh Joo Lin

For more information, see www.smallclaims.gov.sg

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