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Thread: New private home category for short-term rentals under study

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    Default New private home category for short-term rentals under study

    http://www.straitstimes.com/singapor...ls-under-study

    New private home category for short-term rentals under study

    Feb 7, 2017

    Toh Yong Chuan
    Manpower Correspondent


    The Ministry of National Development is studying the option of creating a new category of private apartment owners who would be allowed to rent out their place for a short period.

    National Development Minister Lawrence Wong announced this yesterday as Parliament passed legislation that forbids these owners from renting out their whole flat or rooms for a short period on websites such as Airbnb.

    The prospective category would encompass existing properties as well as new residential sites that may be designated specifically for the building of short-term rental properties.

    Until then, the Planning (Amendment) Bill states that it is illegal to do such rentals for less than six months, unless the owners have obtained permission from the Urban Redevelopment Authority (URA).

    It also limits the number of unrelated tenants in private apartments to six, down from the current eight.

    Those with more than six will be treated as dormitories and will require URA's approval.

    "Private residential properties should not be used for other purposes without planning approval, as there is a need to safeguard the living environment of residents in the neighbourhood," Mr Wong said during the debate on the Bill.

    The changes to the law arose from growing complaints last year about short-term rentals.

    The URA received 608 complaints, 61 per cent more than the 377 in 2015. There were 375 complaints in 2014.

    The new law will allow the URA to "make sure the issue does not worsen further", Mr Wong said.

    It also gives URA powers to impose conditions on developers to make new buildings more liveable and friendlier to pedestrians through the provision of public spaces and covered walkways.

    These features account for only a small component of development costs and will not reduce the development potential of sites because they are excluded from the overall floor area, Mr Wong added.

    URA officers will also be given more powers to investigate breaches of planning regulations, including summoning witnesses for interviews and entering premises for inspections.

    Those who set up unauthorised dormitories will also face stiffer penalties, including a jail term. And the maximum fine for those who tear down conserved buildings, both partially or fully, will go up from $200,000 to $500,000.

    In addition, property owners will be held responsible for unauthorised works by their tenants or contractors, unless they can show they have taken precautions to prevent them.

    During the debate, four MPs spoke up strongly on the problems caused by short-term rentals, as they called for rules to govern them.

    "I have many residents complaining to me about tourists on their floor, moving luggage in and out at all hours of the day, disturbing their rest," said Ms Lee Bee Wah (Nee Soon GRC).

    Said Mr Saktiandi Supaat (Bishan-Toa Payoh GRC): "A Singaporean can, if there are no rules in place, wake up one day and find himself being stared at by someone from another country staying next door and a new one every other week or month or so."

    An Airbnb spokesman in Singapore said the new law lacks details. He noted that it has been nearly two years since the URA started public consultations on short-term home rentals. "It is disappointing that the discussion has not moved forward," he said.

    Mr Wong said in Parliament that the URA is still consulting stakeholders, and will provide more details soon. "We do see a role for home- sharing platforms to continue operating in Singapore so long as they are properly regulated and so long as there is a level playing field between them and similar entities that provide short-term rentals like hotels and service apartments," he added.

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    http://www.businesstimes.com.sg/real...g-minimum-stay

    Private home rentals: Govt looking at shortening minimum stay

    Tuesday, February 7, 2017

    by Lynette Khoo
    [email protected]
    @LynetteKhooBT


    AMENDMENTS to the Planning Act will make two practices illegal - that of using private residential properties for rentals of under six months, and housing more than six tenants in each unit.

    However, the government is looking into shortening the minimum six-month requirement for private housing rentals, and creating a new class of use for private homes so that they can be rented out short-term.

    The amendment Bill, read the second time in Parliament on Monday, inserts a new Schedule into the Planning Act that lists "short-term accommodation" and "dormitory accommodation" without permission as illegal.

    "Dormitory accommodation", which requires planning permission, is defined as accommodation for seven or more persons. The cap, which previously limited tenants to eight in each unit, does not apply to families.

    Lawrence Wong, Minister for National Development and Second Minister for Finance, said the amendment on short-term accommodation does not amount to a change in policy, because an existing guideline under the Urban Redevelopment Authority (URA) already bars short-term stays of under six months in private homes.

    By setting out this minimum requirement in the Schedule of the Act, the government can adjust this parameter by gazette down the road.

    "Indeed, in its earlier consultation, URA had received feedback from a number of respondents that there was scope to reduce the minimum period," Mr Wong said.

    "But whatever adjustments we may make to this minimum period, it is clear that residential homes should not be converted to daily rental of rooms or apartments without appropriate controls.

    "Such premises which are rented out daily ought to be regulated more like hotels rather than residential homes, and be subject to relevant licences and conditions to ensure proper standards. In fact, several cities are regulating short-term home-sharing platforms in a similar way to hotels."

    Several Members of Parliament supported the amendments, but hadreservations over the approach of URA, which is perceived to act only when a complaint is received; the MPs also wanted to know whether the URA has enough manpower and resources to follow up on complaints.

    Member of Parliament Lee Bee Wah suggested that instead of adopting a "one-eye-open and one-eye-closed policy", the government can consider alternatives, such as allowing some units to offer short-term leasing with the consent of other residents.

    Mr Wong noted that the number of complaints by homeowners over breaches of the rule, triggering public-nuisance or safety concerns, has gone up 60 per cent in the past year.

    "We have to enforce the current rules and make sure the issue does not worsen, and the Act will allow us to do so," he said.

    The reading of the amendment Bill followed a public consultation on short-term rentals in 2015. Mr Wong noted that there was strong endorsement of the need to preserve the privacy and sanctity valued by the vast majority of homeowners.

    However, the government does see room for home-sharing platforms to continue operating in Singapore, so long as they are properly regulated and there is a level playing field between them, hotels and serviced apartments, Mr Wong said.

    Advertising on home-sharing or rental websites in itself is not regulated under the Planning Act.

    Commenting on the amendment Bill, a spokesman from prominent online listings platform Airbnb said the draft law "lacks the vital details that are so important to the thousands of everyday Singaporeans who take pride in sharing their extra space".

    "Nor is it compatible with Singapore's vision to stay ahead in an age of disruption and innovation," he said. "We support a common-sense approach to regulation that helps these hosts share their extra space."

    To that end, the URA is studying the option of creating a new "use class" for private residences, the owners of which want to rent them out short-term. The URA is thus looking into approving these properties for that specific purpose, just as serviced apartments or hotels are.

    New residential sites can also be sold with such an approved use, to open the way for flexibility for short-term rentals.

    Existing residential buildings, however, will need planning permission for change of use, and would be subject to a set of guidelines that URA is looking into, Mr Wong said.

    These proposed measures are all separate from the amendments tabled on Monday. URA is studying them, before providing more details.

    Frasers Hospitality chief executive Choe Peng Sum agreed that there should be some leeway for residents to rent out units for short periods in entire residential blocks that are kept for rental. But the government should also review the seven-day minimum stay requirement for serviced apartments, he added.

    Member of Parliament Joan Pereira suggested that management corporations - commonly known as MCSTs (Management Corporation Strata Title) - be given more power and resources to help in the enforcement on short-term accommodation.

    Concurring, Mr Wong said MCSTs can do their part. Under the Building Maintenance & Strata Management Act, MCSTs can pass their own by-laws to manage the use of common property through screening and record-keeping, and register the details of visitors. The URA will also work with the MCST of developments with units listed online so that residents are aware of the rules on short-term accommodation.

    Some Members of Parliament also suggested that the occupancy cap for each residential unit be calibrated according to the size of the unit, or the same cap be similarly imposed on HDB flats. (Four-room HDB flats and bigger flats can house up to nine tenants under existing HDB rules.)

    "HDB controls are separate, but we are happy to review the caps on a separate basis," Mr Wong said.

    He said the occupancy cap is based on the size of a typical Singaporean multi-generational family. And while HDB flats have predictable designs and layout, private housing comes in wide-ranging configurations, making it hard to formulate a rule that will capture all variations from shoebox units to bungalows.

    "A complicated tiered cap would be confusing for the public, and result in uncertainty for those who want to rent or sublet legitimately," Mr Wong said.

    For units currently housing seven or eight persons, URA will allow the tenancy agreements to run their natural course and will not clamp down on them before they expire.

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