Property Views
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Loophole in HDB Rental policy?
Recently I came across an interesting case. This unscrupulous landlord confiscated tenant’s 3 month deposits (for a 3 year lease). The landlord went to HDB to terminate the approval to rent out the full unit, citing that she wanted to move back to the flat for her own stay, and then forcefully evicted the tenants on pretext of reclaiming the unit with the help of Police resources and a locksmith in tow. The landlord then withheld the deposit on various grounds.
One week later, the very same unit was advertised on Property Guru asking for 40% more in rental.
The tenant did write in to HDB to highlight landlord’s intention to cheat but HDB’s reply was factual but not helpful, basically HDB doesn’t care about tenancy dispute, tenant needs to find lawyer. Unfortunately, the tenant is a foreign healthcare worker and has no money to sue landlord in court.
But to me, this is not just a tenancy dispute but a loophole in HDB’s rules, if a landlord can use it over and over again to prematurely terminate a tenancy agreement and cheat tenant’s of the deposit using different reasons. Plus, the landlord can then turn around to rent out the entire unit with HDB seemingly unaware that the approval to terminate was only a week ago and now the unit is back on the rental market.
What was shocking, was that the tenancy agreement was signed for 3 years to a foreigner not of Malaysian origin which already breached the rental guidelines. Informed HDB, also no reply. If a regulator doesn’t enforce, it’s just a paper tiger. -
Technically it is not a loophole. What landlord did is outrightly illegal (several rules broken). He is already risking majorly by doing such things.
“Loophole” is only used if the rules permit it due to poor drafting or whatever.
Should HDB decide to enforce, he will be in trouble. -
Can we report to police? Small claim tribunal? Cannot do till like that to cheat ppl leh. Rental increase just nego with tenants and if cant then give time them time to shift out and return deposit. But commitment is commitment, landlord 'promised' to rent out 3 yrs right at that fee...
Even if want to force ppl out also..got cheek to forfeit deposit plus get police resources :faint: many many type of ppl outside.. -
MrsKiasu\" post_id=\"2060418\" time=\"1646271013\" user_id=\"43981:
The foreign tenant can seek recourse thro Small Claims Tribunal, report the case to police & HDB might slam in with repossession. Evidences are there since she brought in police & her agents advertised on PropertyGuru. Wld like to wipe off the smirk fr this greedy landlord.
Can we report to police? Small claim tribunal? Cannot do till like that to cheat ppl leh. Rental increase just nego with tenants and if cant then give time them time to shift out and return deposit. But commitment is commitment, landlord 'promised' to rent out 3 yrs right at that fee...
Even if want to force ppl out also..got cheek to forfeit deposit plus get police resources :faint: many many type of ppl outside.. -
under normal circumstances ie tenant didnt do anything bad or illegal, can the landlord premature terminate the lease AND confiscate the deposit?
I thought the renting out of hdb is max 2 years?
If there is an agent involved, didnt the agent provide advice? -
starlight1968sg\" post_id=\"2060426\" time=\"1646278281\" user_id=\"14025:
yah, dunno what unreasonable grounds the landlord use to premature end the contract, n manage to get spf to evict the tenant?
under normal circumstances ie tenant didnt do anything bad or illegal, can the landlord premature terminate the lease AND confiscate the deposit?
I thought the renting out of hdb is max 2 years?
If there is an agent involved, didnt the agent provide advice? -
Yes, agree with Zac’s mum that this is not a loophole.
If the police were activated, I believe the landlord must have had a clause in the contract that allows him to reclaim his unit. He could also genuinely want to move back to the unit, but upon reclaiming it, realised that it’s not in good condition… so he used the 3 months deposit to renovate it, and thus commanding a higher rental after it was renovated.
At first, it was stated that the landlord “confiscated” the deposit… and then it says “withheld” the deposit. This case seems a little one sided… perhaps need to listen to the other side of the story.
However, I agree that taking 3 months of deposit is excessive. Unless landlord can provide evidence that many items are not maintained regularly as per their contract. Eg. No servicing of the aircon resulting in it breaking down… despite of their contractual obligation.
And if indeed they have signed a 3 year contract with a foreigner, all parties are at fault too. Not just the landlord, the agent and tenant should not do that too. They will all be in hot soup. However, I know of instances whereby the main tenant is a new citizen or PR… although the other tenant is foreigner. -
zac's mum\" post_id=\"2060416\" time=\"1646270009\" user_id=\"53606:[quote=\"zac's mum\" post_id=2060416 time=1646270009 user_id=53606]
If the landlord keeps repeating the same action, that is, using HDB termination letter to evict tenants, confiscate the tenants’ deposit and rent out the unit again to cheat the next group of tenants, is this not a policy loophole?
Technically it is not a loophole. What landlord did is outrightly illegal (several rules broken). He is already risking majorly by doing such things.
“Loophole” is only used if the rules permit it due to poor drafting or whatever.
Should HDB decide to enforce, he will be in trouble.[/quote]
Another point, the landlord’s actions may be unlawful but if the tenant lacks the resources to bring the landlord to court and Police is not likely to act as this is a civil dispute, the landlord will get away scot free.
Once HDB terminated the approval to rent out the whole unit, why did it grant approval to rent out the whole unit within days?
Tenant wrote in to HDB, seemingly no action will be taken by HDB. -
MrsKiasu\" post_id=\"2060418\" time=\"1646271013\" user_id=\"43981:
We’ve checked everything we could. Small claim can’t work as the tenancy agreement (TA) is longer than 2years. Small claims only doable if TA is 2years or less.
Can we report to police? Small claim tribunal? Cannot do till like that to cheat ppl leh. Rental increase just nego with tenants and if cant then give time them time to shift out and return deposit. But commitment is commitment, landlord 'promised' to rent out 3 yrs right at that fee...
Even if want to force ppl out also..got cheek to forfeit deposit plus get police resources :faint: many many type of ppl outside..
Rightfully, if want to increase rental just say it out. But the problem is, the TA still has 8 more months to run. Not possible to suddenly ask for 40% increase in rental.
As for police, when landlord called them, police had to make a trip down? We went to police station to enquire, police said cannot be revealed what the landlord said to them. -
Estéema\" post_id=\"2060422\" time=\"1646271564\" user_id=\"66413:
Oh… I forgot to mention that the landlord is a qualified agent herself. From her actions, she’s gaming the system to her advantage.
The foreign tenant can seek recourse thro Small Claims Tribunal, report the case to police & HDB might slam in with repossession. Evidences are there since she brought in police & her agents advertised on PropertyGuru. Wld like to wipe off the smirk fr this greedy landlord.
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