SINGAPORE – Eligible sub-tenants of government-owned properties managed by the Singapore Land Authority (SLA) will benefit from additional rental waivers.
The waivers are going to more than 2,000 commercial tenants and around 100 social sector tenants as part of assistance to pandemic-hit businesses.
Master tenants – those who have sub-let state property – must pass on the rent relief to more than 2,000 eligible sub-tenants, the SLA said on Thursday (June 11).
This is in line with the Covid 19 (Temporary Measures)(Amendment) Bill passed last week to help small and medium-sized enterprises (SMEs) by sharing of rental obligations between the Government, landlords and tenants.
Eligible tenants in commercial accommodation, food and beverage (F&B), retail, recreation/entertainment, healthcare and other services will get four months’ rent waiver from April to July.
These tenants are then required to give four-month rent relief to any eligible SME and non-profit organisations in those sectors that are sub-leasing space.
The same four-month waiver will also go to eligible social sector tenants of state properties.
Tenants of commercial offices, and those in the industrial and agriculture sectors will get a two-month rental waiver.
They in turn must pass on the same two-month waiver to eligible SME and non-profit organisation subtenants.
Master tenants must also sign an undertaking that they have provided the mandated rent relief to eligible commercial SMEs and non-profit organisation subtenants.
If sub-tenants are not SMEs or do not qualify for relief, master tenants must still pass down at least 80 per cent of the rental waivers they receive.
Master tenants can offset the rent relief granted to subtenants with any previous monetary assistance provided from February this year.
Both master tenants and sub-tenants with cash flow concerns can apply for deferred payment of rent arrears accumulated from Feb 1 until Oct 19. The arrears can be repaid in equal instalments over a nine-month period, with interest capped at 3 per cent a year.
Master tenants with cash flow concerns can ask the SLA for an assessment if they are unable to provide the full rental waiver.
And master tenants and sub-tenants can offset rent arrears incurred from Feb 1 to Oct 19 with their security deposit.
But at least one month’s worth of rent must remain in the security deposit and the entire deposit must be replenished to the contractual amount at the end of the nine-month repayment period.