Government to probe possible illegal short-term rental of homes: HDB, URA

Source: Business Times
Article Date: 04 Jul 2024
Author: Vivienne Tay

Since 2019, 64 offenders have been fined for offering illegal short-term accommodations in private residential properties, while 15 have been prosecuted.

Government agencies will actively investigate all suspected illegal short-term rentals brought to their attention through public feedback.

They will also monitor online platforms for errant listings, the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) said on Wednesday (Jul 3).

Since 2019, around 64 offenders have been fined for offering illegal short-term accommodations in private residential properties, while 15 have been prosecuted. For HDB flats, seven offenders were fined for providing short-term rentals of flats over the same period.

HDB and URA were responding to recent media queries over online listings of public housing flats and private residential homes found to be offering short-term stays, which are forbidden in Singapore.

The minimum stay for renting private residential properties is three consecutive months, and six months for public housing flats. HDB owners require HDB’s approval before rental, and are also required to meet their Minimum Occupation Period before renting out their entire unit.

A report by CNA in June said that illegal listings on Airbnb offering short-term stays in Singapore had been removed from the platform. According to CNA, there were more than 15 such listings on Airbnb, offering two and three-night stays in condominium units and HDB flats. Some claimed to be “authorised serviced apartments”.

The Business Times understands that illegal rental listings have been found on sites including social media platforms as well as property platforms.

Both Facebook Marketplace and Carousell have sections dedicated to real estate listings for sale and rental. A search for short-term rental listings on PropertyGuru threw up close to 1,000 listings advertising three and six-month stays that fall within the rules, with some offering “flexible terms”.

In response to BT’s queries, an Airbnb spokesperson said: “We have been in active discussions with the URA and are currently working with them to streamline processes and strengthen channels of communication, to work towards listings on Airbnb being accurately licensed and represented in Singapore...

“Airbnb takes reports from the community seriously, and where a concern about a host or listing is brought to our attention, we review and take appropriate action. Additionally, we are currently exploring updates to better enable our hosts to remain compliant with local laws and regulations.”

A Carousell spokesperson said the platform has removed rental listings that do not comply with local laws and regulations, and does so “when we receive community reports or when our moderators detect such listings”. It did not clarify how many such listings were taken down.

“Sellers are responsible for ensuring that the items they are selling comply with local laws and regulations, or we will remove the listings from our platform,” the Carousell spokesperson said.

Users are encouraged to report listings of prohibited content, and reports are reviewed within 24 hours. The platform will also be updating its notice banner on property listings “to reflect the latest alert from authorities”, it said.

A 99.co spokesperson said that the platform’s listing creation process only allows agents registered with the Council for Estate Agencies (CEA) to post listings. “If there are errant agents who indeed post such listings and are detected, CEA would usually be informed to take action on the agent, and we will follow up by removing the offending listings.”

BT has also reached out to Meta and PropertyGuru for comment.

HDB and URA said they have been engaging online platforms directly to highlight the important role they play in ensuring listings comply with Singapore’s laws.

“Listings on online platforms may provide an indication that certain residential properties are being misused,” HDB and URA said in a joint statement. They added that they take a “serious view” on these illegal rentals and would not hesitate to take strict enforcement action.

Enforcing the minimum stay duration of three months for private homes helps minimise the frequent turnover of transient occupants, which could change the residential character of a property and negatively affect neighbouring residents, among other safety concerns, the agencies said.

The minimum stay duration for HDB flats is double the period for private homes, due to the “more compact nature and porosity of public housing estates”, HDB and URA said.

First-time offenders face a fine of up to S$5,000. Repeat offenders or those involved in larger-scale operations will be prosecuted and upon conviction, fined up to S$200,000 per charge.

Depending on the severity and circumstances of cases involving HDB flats, HDB could issue a written warning, fine of up to S$50,000, or compulsorily acquire the flat in more severe cases.