Blog 2: Lording Landlords

 

Your research question

“Why do Singaporean landlords feel entitled to behave unreasonably?”  

Summary of Source 1 (200 words)

Sum up the argument in your own words.

Focus on the main claims which relate to your question.

Explain the reasoning and/or the evidence supporting these claims.

If necessary, include the context (e.g., time period, place, culture) within which these claims are made. Include an essential quotation.

Context: “Every single town across Singapore has been hit by increasing rents, with prices rising non-stop for the last 30 months.” There has been a 25 – 30 % increase in rent on average in Singapore. Catherine, who is one of the interviewees, noted that her four-room flat in Punggol was S$2,500 at the start of 2022, but it rose to S$4,000 in September of the same year.

 

Purpose: Examining the effect of rental prices and whether it only affects renters.

 

HDB rental market pressures (One Global Group real estate senior analyst Mohan Sandrasegeran)

1.     The pandemic has led to delays in construction, due to travel restrictions limiting foreign manpower. The lack of completed flats for both public and private housing has resulted in “interim renting” by expectant homeowners.

2.     There has been an increasingly lucrative resale market from 2019 to 2021. The demand for HDB resale flats rose over that period, and as most HDB flats met the criteria to be sold at that time (i.e., Minimum Occupation Period), homeowners opted to sell their flats, effectively reducing the number of flats in the rental market.

3.     As Singapore navigates an endemic living arrangement, travel restrictions have relaxed, resulting in an influx of foreign workers and international students, and consequently a surge in demand.

4.     An increasing number of millennials are renting. They desire their own space, want to have a taste of co-habiting with their partner or are leaving their family for mental health reasons.

   

Corollary impact

1.     Property owners face a rise in property taxes in 2023. Property tax refers to the Annual Value (AV) multiplied by the tax rate. The AV is defined as the rental income a property may theoretically generate in a given year. Hence, an increase in rental prices naturally entails a rise in property taxes for homeowners too.

2.     The documentary found that many renters were suddenly informed of the huge jump in rental prices and sent “scrambling for a roof over their heads”, which was panic inducing.

3.     Home seekers who have to look for a new place before their current lease is up end up falling prey to the growing number of property scams. “In 2022 alone, 3.9 million Singapore dollars were lost to rental scammers.” 

 

Essential quote: “Contrary to what I initially thought, rising rents are affecting not just a small group of people – they are affecting us all.”

398 words


 

Evaluation of Source 1 (150 words)

What claims or concepts address your question directly or indirectly.

How does this perspective enable you to look at the topic differently?

Are the perspectives, claims or concepts limited or skewed? Note one logical fallacy or appeal in the source.

How could you extend or revise the claims/concepts from your source to offer a more convincing response to your question?

How do you know this is a credible source?

1.     The consequences of the tight rental market, e.g., property scams and renters anxious to find a roof over their heads, are more relevant to my question than HDB rental pressures.

The tight rental market also means that landlords may still engage in entitled behaviour, whether raising their prices exorbitantly or being inconsiderate, while still being assured of a demand for homes.

For example, despite the S$1,500 jump in rental price of her current unit, Catherine has to stay put due to pricey alternatives or cheaper options having poorer living conditions.

2.     The explanation on property tax makes me more assured that there will be a limit to landlords raising rental prices, however, where this equilibrium lies remains unknown.

3.     This source is limited as it fails to account for many landlords’ behaviour and unreasonable requests in tenancy agreements. It merely looks at “entitlement” in terms of raising of prices. The Control of Rent Act, first introduced in 1947 to limit increases in rent, was abolished in 2001 as demographics changed. Most Singaporeans are now homeowners and not renters, unlike the pre-war era.

4.     The anxiety that renters face could be highlighted further. They have to make a quick decision, find a new home and sign a six-month contract. Besides resulting in more property scams, fast decisions like this may result in poor planning and failure to understand the landlord or living arrangements adequately beforehand.

5.     Credible. Channel NewsAsia Talking Point Documentary.

 

242 words

 


 

Summary of Source 2 (200 words)

Sum up the argument in your own words.

Focus on the main claims which relate to your question.

Explain the reasoning and/or the evidence supporting these claims.

If necessary, include the context (e.g., time period, place, culture) within which these claims are made. Include an essential quotation.

Purpose: Danker (2022) notes the troubles of two young Singaporean adults in navigating the rental market, from why they moved out to the issues they faced with their landlords.

 

Context: Rental prices have grown by 8.6 per cent in the third quarter of 2022. Prices are further exacerbated by Singapore’s “lowest housing inventory in five years” (Danker, 2022).

 

Key claims:

Summary of key problems faced by the two interviewees: Sabby and Diana

·       Sabby

o   First rental apartment: (1) Living-in with landlord: Elderly landlady who burdened Sabby with her emotional rants. (2) Tenancy Agreement: Verbal agreement (no tenancy agreement). Overcharged by the landlady (budget of $1,500) and hence she had to skip meals on some days as she was living from day-to-day. (3) Location: Location was not convenient. (4) Pets: Pets were not allowed.

o   Second apartment: Allows pets.

·       Diana

o   First apartment: (1) Space constraint: Small and crammed.

o   Second apartment: Commontown (co-living company) in Aljunied shophouse. Bought over by The Assembly Place (TAP) in March 2022.

§  (1) Hygiene: New management took three days to respond to a maggot infestation.

§  (2) Sudden price hikes: Raised Diana’s rent by $300 two months in a row, from S$1,600 till $2,300 (perhaps additional for utilities). Diana referred to TAP’s own tenancy agreement and notified the manager that he should give her a minimum of 30 days’ notice before a price hike. The manager cancelled the hike accordingly, but informed Diana that it would still be enacted in 30 days.

o   Now: Raised her budget to S$2,500 and rented a studio apartment instead (possibly to gain more freedom).

Shaik Amar (Property agent)

·       Recommends renters to sign a lease of at least two years to ensure prices remain stable for themselves. [Evaluation: It’ll be worse if one gets stuck with a bad live-in landlord.]

·       Find units farther from MRT stations or “on the outskirts of Singapore”.

 

Takeaways

·       Tenancy agreement safeguards renters against sudden hikes

·       Check the tenancy agreement prescribed by the Council for Estate Agencies (CEA) – presumably this article means that one does not leave it up to one’s agent to draft.

 

Quotes:

“Still, renting is not merely about the discussion of price.” “The problem is more nuanced and complex than that of dollars and cents, Sabby and Diana tell me, usually involving a mix of family, environmental conditions, and well, maggots.”

 

“And while news coverage may paint the rental landscape Sabby and Diana find themselves in as alarmingly pricey, property agent Shaik Amar (who runs TikTok account That Property Guy) has a different view.  In his opinion, this is simply Singapore’s rent market catching up to be on par with other first-world cities.”

 

441 words

Evaluation of Source 2 (150 words)

What claims or concepts address your question directly or indirectly.

How does this perspective enable you to look at the topic differently?

Are the perspectives, claims or concepts limited or skewed? Note one logical fallacy or appeal in the source.

How could you extend or revise the claims/concepts from your source to offer a more convincing response to your question?

How do you know this is a credible source?

1.     (A) There are many other factors which affect a tenant’s quality of life, e.g., cleanliness (maggots), lifestyle preference (pets) or communication (overloading tenant with emotional problems. (B) Tenancy agreement safeguards a renter against unreasonable behaviour or price hikes from a landlord. (C) Rushing into renting usually results in uninformed decisions.

2.     This made me realise the importance of drafting a good tenancy agreement to safeguard tenants.

3.     Perspectives are limited to mostly the logistics of renting, e.g., pets or location. Little is said about dealing with housemates or landlords. In fact, a Channel NewsAsia article on landlord-tenant disputes about ‘fair wear and tear’ notes that property agents have “no obligation to resolve disputes” between landlords and tenants, and if they do have a monetary dispute, they may approach the Small Claims Tribunal.

4.      (A) There are many aspects to a preferred lifestyle; (B) if the landlord is living in, there may be a lack of boundaries and unreasonable behaviour (e.g., the elderly landlady pouring her heart out); (C) if the landlord is not living in, they may be unreasonable and ignore pressing issues (e.g., maggot infestation) since they don’t have to live with it.

5.     RICE media is a digital publication known for its journalism and for collecting views from the ground. 

213 words


 

Citations for sources

Format:

Last name/s, First name initial. (DATE). Article

title. Journal/newspaper/website. Pages.

Source 1:

Chong, C. F. (Producer). (2023).  Singapore's Soaring HDB Rents: How Do They Affect You? | Talking Point | Full Episode [Online video]. Channel NewsAsia.

 

Source 2: 

Danker, K. (2022, November 29). Renting Was a Small Price to Pay for Independence in Singapore. Until It Wasn’t. RICE Media. https://www.ricemedia.co/rent-was-a-small-price-to-pay-for-independence-until-it-wasnt/

 

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