In Singapore, renting out one's own home is not something that comes naturally to most Singaporeans. While there are certainly sincere and dedicated landlords, the majority feel uncomfortable chasing rent, dealing with tenants, and opening their homes to strangers. However, recently, there has been a growing number of cases where some homeowners, who originally planned to sell their homes, have changed their minds and started renting out rooms or their entire property, drawing attention to the reasons behind this shift. This publication delves into the stories of these homeowners to deeply understand their circumstances and motivations.
1. Securing Additional Income by Renting Out Existing Property After Arranging Alternative Housing
Mr. JT, who owns an apartment near Tampines Central, originally planned to sell his unit, valued at approximately S$780,000 at the current market rate, and combine the proceeds with his wife's savings to move into a private condominium. In 2022, the couple aimed to purchase a condo, but an unexpected change occurred.
Mr. JT explained the situation at the time, saying, "My wife's grandfather suddenly passed away, leaving her grandmother alone. However, her grandmother has asthma and mobility issues, so we felt it wasn't safe for her to live alone in a large detached house."
The grandmother's residence was a two-story detached house in the Lucky Heights estate, conveniently located near Temasek Polytechnic, where Mr. JT's son attends. Currently, the house is still owned by Mr. JT's wife's grandmother, but she is now living with Mr. JT's parents-in-law in Bedok South, and Mr. JT and his wife have moved into her house to help manage it.
Mr. JT stated, "Living in a larger house in a better location, we've put our condo purchase plans on hold for the time being. Instead, we've decided to rent out our existing apartment and see how things go in the future."
However, his wife does not fully agree with this decision due to concerns about the aging of their 36-year-old Tampines apartment. Mr. JT is also aware that its value may decrease over time and is considering the timing of a sale, but he is currently satisfied with the comfortable living environment and the rental income, which provides greater flexibility for future choices.
2. Preferring Stable Monthly Rental Income Over a One-Time Lump Sum
Another individual, who requested anonymity and goes by the pseudonym Mr. Sam, was originally tasked with selling his parents' apartment. However, Mr. Sam persuaded his parents to rent out the apartment instead of selling it, arguing that the very old apartment would not fetch a high price. (In reality, the apartment, although nearly 40 years old, had appreciated significantly, making this only partly true.)
Mr. Sam's real intention was to prevent his father from receiving a large sum of money at once, as he knew his father's financial management skills were poor. Mr. Sam revealed that his father's past business failures had led to a situation where they couldn't even repay the home mortgage, and ultimately, he and his siblings had to pool their money to maintain the apartment. Currently, Mr. Sam's family resides in an apartment owned by his grandparents.
Through consultations with a real estate agent, Mr. Sam estimated that even after the Central Provident Fund (CPF) refund, his parents would be left with "hundreds of thousands of dollars" from the sale of the apartment, and he worried about the possibility of this money being mismanaged. Therefore, he planned for his parents to live off the rental income instead of a large one-time payment.
Additionally, fairness was a factor in this decision, as Mr. Sam's father, despite being a co-owner, had not contributed to the home mortgage repayments for many years.
3. Securing Liquidity by Renting Out a Portion of Current Residence Instead of Buying a Larger Home
Mr. YJ has been living in a 3-room apartment since separating from his wife 10 years ago. He currently co-owns a small business and had considered moving to a larger apartment as his financial situation improved.
However, last year, he and his business partners decided to expand their business into Southeast Asia, leading him to reconsider his moving plans. He explained, "I had two things to consider. First, there was a possibility of staying overseas for an extended period, including Vietnam. It could be a few months or even a year. Second, business expansion is a risky endeavor, and I didn't want to take on larger expenses during this time."
On a partner's recommendation, Mr. YJ rented out one of the rooms in his current apartment and plans to rent out the entire unit if he needs to go overseas for a long period. The fact that he can stay with his parents or siblings while in Singapore also facilitated this decision.
He says that living with a tenant has not been inconvenient at all so far. "I also come home late and spend most of my time at work. We both tend to keep to ourselves, so there haven't been any issues so far."
Mr. YJ added that while the rental income is not substantial, it is sufficient for his daily grocery expenses while living alone.
4. Switching to Renting Due to a Lack of Desired Properties
Ms. KC's case reflects the difficulties many homebuyers face in 2025. She owns a relatively new 2-bedroom (1+1 study room) unit in the city fringe. With her upcoming marriage, Ms. KC and her boyfriend were looking for a larger matrimonial home, and Ms. KC initially thought selling her existing property was the first step. However, she soon encountered difficulties.
Ms. KC lamented, "As you know, all property prices have risen since COVID-19, and we could only afford very small houses within our budget. I don't think a good layout compensates for a lack of space. All the houses I saw were too cramped, and in some, you couldn't even fit a proper-sized bed in the second bedroom."
She added, "When I first bought my house, I was told that a 1+1 layout was very large for a single person, but now it's barely enough to accommodate my belongings. If we have children in the future, it will be impossible for two of us to live in a small 2-bedroom or 3-bedroom unit."
Another issue was that her boyfriend might face a job transfer soon, which could affect his workplace and income. Due to this uncertainty, they decided to postpone their home purchase plans. Instead, Ms. KC decided to live with her boyfriend at his place and, with the help of a relative who is a real estate agent, rent out her own property instead of leaving it vacant.
Ms. KC believes it is wise to hold onto her property until she gets married and has no plans to sell it for the time being. While she hasn't found her first tenant yet, she has already received inquiries.
For various reasons like these, the number of cases in Singapore where homeowners rent out their existing properties instead of selling to move is increasing. Whether this trend of Singaporean homeowners seeking ways to utilize their properties according to their individual circumstances, such as unexpected changes in family situations, difficulties in financial management, and preparing for an uncertain future, will establish itself as a new trend in the real estate market remains to be seen.
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