SINGAPORE: Following the passage of a new Bill by parliament on Thursday( Aug 3 ), landlords and tenants of retail spaces will be required to adhere to the code of conduct for lease contracts starting in February.
The licensing rules are outlined in the code, for example, landlords are prohibited from marking up electricity rates. Additionally, landlords are not permitted to end leases early due to renovation projects unless they fulfill specific requirements, such as providing tenants with at least six months’ see. & nbsp,
All financial contracts with stints of at least a year will be subject to the code. Among the types of firms covered are restaurants, tutoring centers, and gyms. Shopping mall firms are typically covered.
If both the landlord and the tenant agree, variations from some rent principles may be permitted.
A conflict resolution process is even established by the Bill. Tenants and residents may be required to modify the license agreement or spend compensation if the code is broken and mediation is unsuccessful.
According to Minister of State for Trade and Industry Low Yen Ling, the code will be administered by the Fair Tenancy Industry Committee( FTIC ) and updated based on feedback from the industry.
Since June 2021, the code of conduct has been deliberately adopted by all government landowners as well as nine significant private sector landowners, including CapitaLand Group and Frasers Property Singapore.
WHAT MATTERS ABOUT IT
Residents and landlord tensions increased as a result of the COVID-19 crisis. Tenants and landlords will have more clarity on industry standards for important terms in wholesale license agreements thanks to the code of conduct.
This addresses the tenants’ concerns about” imbalances in negotiations strength” and makes the negotiation process” more clear” for both parties, according to Ms. Low.
The password also contributes to Singapore’s tourism sector and supports a” vivid and good” lifestyle industry.
More than 4 % of Singapore’s entire workforce is employed by the retail industry, which employs 160, 000 people. On 7 % of the overall workforce, or more than 260, 000 staff, are employed in the food service and lodging areas.