Written Answer by Ministry of National Development on illegal subletting of private residential properties

Oct 7, 2019

Ms Rahayu Mahzam: To ask the Minister for National Development (a) in the past five years, what is the number of cases of illegal subletting in private properties; (b) whether there is a need to enhance the awareness of private property owners about illegal subletting; and (c) whether the Ministry has any plans to further strengthen the policing of illegal subletting and take stronger legal action against agents, tenants or landlords who illegally sublet their properties.

Answer:

Subletting of private residential properties is only allowed for stays of at least three consecutive months. There is also an occupancy cap of six unrelated persons in each unit.

In the past five years, URA investigated an average of about 600 cases involving suspected breaches of the minimum stay duration and an average of over a thousand cases of suspected breaches of the occupancy cap each year. In condominium developments, URA works closely with Management Corporations to raise awareness of the minimum stay duration and occupancy cap among homeowners and to identify units suspected to be in breach of the regulations. Where an offence is established, URA will take appropriate action against those responsible. These include not just direct perpetrators, but also landlords who fail to exercise the necessary due diligence to prevent infringements in their properties, even if the offence was carried out by the tenant.

For marginal breaches of the regulations, URA may issue a composition fine of up to $5,000. Since May 2019, URA has issued 23 composition fines for illegal subletting offences. Recalcitrant and serious offenders (e.g. those operating on a commercial scale) will be prosecuted in Court and face significantly heavier penalties upon conviction, such as fines of up to $200,000 or imprisonment of up to 12 months. 

Since the implementation of these measures, 18 individuals and companies have been prosecuted in court for illegal subletting offences. Of these offenders, 11 have been convicted and sentenced to fines as high as $70,000. Another 7 cases are currently before the Courts. Several of these cases were reported in the media. We will continue to raise awareness of the regulations, as well as the penalties faced by those who breach them.

Apart from property owners and tenants, action will be taken against other parties responsible for illegal subletting offences. For example, where estate agents are found to be complicit in such offences, CEA will take action, which could include revoking the registration of the agent or debarring them for a period of time. MOM will also take enforcement action against errant employers who house foreign workers in poor living conditions. 

URA will continue to step up its investigation and enforcement efforts.