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Covid-19: Landlords required to provide 2-week rental waiver to eligible tenants for heightened alert period

SINGAPORE — Under a law that took effect on Tuesday (Oct 5), landlords will be required to provide two-week rental waivers to eligible tenants who operate small- and medium-sized enterprises (SMEs) or non-profit organisations.

Landlords must give eligible tenants a two-week rental waiver for the period Aug 5 to 18, the Ministry of Law said on Oct 5, 2021.

Landlords must give eligible tenants a two-week rental waiver for the period Aug 5 to 18, the Ministry of Law said on Oct 5, 2021.

SINGAPORE — Under a law that took effect on Tuesday (Oct 5), landlords will be required to provide two-week rental waivers to eligible tenants who operate small- and medium-sized enterprises (SMEs) or non-profit organisations.

The waiver, covering Aug 5 to 18, is to help them cope with restrictions imposed when Singapore went into a phase of heightened alert to curb an earlier surge in Covid-19 cases.

Coupled with the previous Rental Support Scheme cash payouts, eligible tenants will benefit from a total of about one-and-a-half months of rental support.

Tenants who received their second payout from the Government under the scheme will get a notice about the rental waiver by post from the Ministry of Law (MinLaw) from Wednesday.

In a statement on Tuesday, MinLaw said that receiving the notice does not automatically qualify tenants for the rental waiver. Instead, they should assess if they satisfy the eligibility criteria.

The mandatory rental waiver was drafted into legislation and passed in Parliament last month.

Many food-and-beverage establishments and retail outlets were hit badly by the ban on dining out during the heightened alert phase and have appealed to landlords for help.

The eligibility criteria applying to tenants include:

  • Annual revenue below S$100 million in the financial year of 2019

  • A lease or licence entered into or renewed before July 20 this year, and which was in force for the entire period from Aug 5 to 18, both dates inclusive

  • A lease or licence stamped on or before Aug 2

  • Suffered a drop of at least a 20 per cent in average monthly revenue during the heightened alert period compared to when Singapore was in its third phase of reopening last year

For tenants that meet the eligibility criteria, the Ministry of Law said that they need to:

  • Prepare supporting documents such as profit-and-loss statements to prove their eligibility

  • Complete the declaration form attached to the notice

  • Send copies of these documents and a copy of the notice to their immediate landlord within 28 days of the date of the notice

  • Once these documents have been sent to the landlord, the rent for the period Aug 5 to 18 will be waived

If rent for this period has already been paid, the tenant’s next rental payment will be reduced by the same amount, MinLaw said.

Related topics

rent landlord tenant SME minlaw business waiver

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