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Subletting Your Premises

For Tenancy

Eligibility

• For new tenancies commencing on or after 1 Jan 2012, Registered Tenants can only sublet their premises after completing the first term of tenancy.
• Subletting of Premises allocated under Expansion Scheme is not allowed within the first 3 years of occupation.

Space Allowed

1. Up to 50% of Floor Area is allowed for subletting. (Up to 100% allowed for sold factories subject to minimum occupation of 5 years.)
2. 60/40 Rule (Under URA ruling, at least 60% of the total gross floor area must be set aside for industrial activities, inclusive of ancillary store/warehouse. The space should be used either by Tenant & sub-tenants. The rest may be used for storage, ancillary office or other ancillary purposes. If the premises is purpose-built warehouse, industrial activities shall be replaced by warehousing activities.)
3. No limit for joint-ventures companies where Tenant has at least 51% stake.
4. Occupation by tenants' subcontractors not treated as subletting.

Tenure

1. Maximum 3 years, within the term tenancy, renewable

Permitted Sublet Trade

1. Uses like Office / Retail / Storage are not allowed
2. Tenant to ensure that sub-tenant obtains NEA's/AVA's/HSA's/MOM's clearance for his (sub-tenant's) trade prior operation.
3. Separate Factory Licence may be required

Sublet Consent Fee

1. Payable for all subletting in rental properties
2. Fee Computation :- 3% of Sublet Rent pa x Shares not owned by Tenant, subject to minimum sublet consent fee of $500 p.a.(GST exclusive).
3. 50% discount on sublet consent fee, subject to a maximum $3,000 p.a. for 1st time application, subject to following conditions :-
   1. Complete application i.e NEA's/Competent Authorities' clearances received before commencement of subletting.
   2. Sublet consent fee paid to HDB within 14 days from subletting commencement date.
   3. Sublet fee after discount is subject to a minimum of $500 p.a.(GST exclusive).
4. A one-time administrative fee, fixed at $500 p.a.(GST exclusive), for subletting to wholly-owned or parent company is imposed. Renewal of subletting is not required.

Penalty

1. Interest at 8.5% pa payable for late renewals / late payment of consent fee
2. For unauthorised subletting,
   1. 100% of sublet consent fee backdated to detection of infringement (not from date of HDB's approval) would be recovered.
   2. In addition, a penalty fee based on one-month existing rent (includes SC/CC) would be imposed.
   3. For subsequent offence, in addition to above, rent would be revised to market rent, if higher.

How To

1. Complete and submit the online sublet application form.
2. You will receive an online acknowledgement of receipt of the application.
3. HDB will inform you of the in-principle approval, if granted, via email.
4. You are required to complete FORM-IA (PCD) and submit it to NEA if your trade is not declared as non-pollutive in the application form.
5. Upon NEA's approval, please forward a copy of NEA's approval letter to HDB.
6. You will receive an approval email and letter from HDB.
7. You will then need to pay the sublet consent fee and any outstanding amount owing to HDB at IPD Counter or by post (cheque).
8. You will also need to submit to following at the same time:
   a) Floor plan sketches of area to be sublet;
   b) Approved Letter from NEA (if required).
9. The sublet may commence once the above is completed.