By The Address desk · Last verified 4 October 2026
In Singapore, no law fixes how big a rental deposit must be, when the diplomatic clause kicks in or how much a tenant pays for repairs. All three are set by your tenancy agreement, so the contract is where the money is. The most widely used starting point is the pair of free tenancy agreement templates for HDB flats and private homes published by the Digitalised Property Transactions Workgroup led by the Council for Estate Agencies (CEA), last updated in March 2024. They leave blanks for the deposit, the minor repair cap and the diplomatic clause’s timings, which landlord and tenant fill in together. If a deposit is not returned, CEA cannot step in: it is a private contract dispute, which the Small Claims Tribunals can hear for residential tenancies of up to two years.
A tenancy agreement is mostly common sense written down. Reading these clauses slowly, once, saves a great deal of awkwardness at move-out.
Quick facts
- Deposit amount: negotiated; the official templates leave it blank.
- Deposit is not rent: the templates bar tenants from using the deposit to pay the last month’s rent.
- Refund: returned without interest at the end of the term, less any proper deductions.
- Diplomatic clause: lets a tenant leave early if transferred out of Singapore or no longer employed, after an agreed number of months and with agreed notice.
- Minor repairs: paid by the tenant up to a capped sum per item per incident; the landlord pays above that.
- Disputes: the Small Claims Tribunals hear claims up to $30,000, including residential tenancies of up to two years.
How the deposit works
Two different sums are often called a deposit. A good-faith deposit is paid with a letter of intent to hold the unit while the agreement is drawn up; agree in writing whether it counts towards your first payment and when it is refunded if the deal falls through. The security deposit is paid on signing and sits with the landlord for the whole tenancy as a guarantee that you will pay rent and return the home in good order.
Under the templates, the security deposit is refunded without interest when the term ends or is terminated, after any deductions for unpaid rent, bills or damage beyond fair wear and tear. The HDB template states plainly that the tenant cannot use the deposit to set off rent. The landlord also prepares an inventory list at the start for the tenant to endorse, and that list, together with dated photos, is your best defence against unfair deductions later.
The diplomatic clause, line by line
The diplomatic clause is an early-exit door for tenants whose jobs move them. In the templates it applies if the named person is permanently transferred out of Singapore by their employer, stops being employed, or is ordered to leave the country. It has three blanks that matter.
| Blank in the clause | What it decides | What to check |
|---|---|---|
| Months from commencement | How long you must stay before you can use the clause | That it is reachable within your likely posting |
| Months of notice | How much warning you must give | That it matches your employer’s own notice terms |
| Months of rent in lieu | What you pay instead of serving notice | That it equals the notice period, not more |
| Commission refund (private template) | The tenant refunds the landlord’s agent commission pro rata for the unexpired term | That you know this cost exists before you sign |
The clause is a right that must be written into the contract and filled in; a tenancy without it gives you no automatic early exit. You will need documents, such as a letter from your employer, to show the trigger has happened.
Who fixes what?
The templates split repairs by cost. The tenant pays for minor repairs as long as the cost per item per incident stays within the amount written in the agreement. Above that, the landlord pays, unless the damage came from the tenant’s negligence; the HDB template says the landlord reimburses the excess within seven days. The private-home template also requires the tenant to keep a service contract for the air-conditioners, with servicing at least once every three months at the tenant’s expense; check whether your own agreement carries the same clause.
Worked example: your agreement sets the minor repair cap at $200 and the washing machine’s pump fails, costing $350 to fix. You pay the first $200 and the landlord pays the remaining $150, provided the fault was not caused by misuse. A $120 tap replacement, by contrast, is entirely yours.
Before you sign: a five-step check
- Fill in every blank: deposit, repair cap, diplomatic clause months and notice. A blank is an argument waiting to happen.
- For an HDB flat, confirm the landlord has, or will get, HDB approval; the HDB template ends the tenancy if HDB withdraws consent.
- Agree who pays rental stamp duty and pay it on time through IRAS.
- Walk through the inventory with the landlord, photograph every room and keep a dated copy.
- Note the renewal notice: the private template has the tenant ask at least two months before the term ends.
The WahLiao Verdict
Start from the official template, not a mystery document, and treat its blanks as the real negotiation. If your job could move you, insist on a diplomatic clause and read its numbers. Photograph the flat on day one, keep your aircon receipts, and the deposit usually comes home with you. If it does not, the Small Claims Tribunals exist for exactly this.
Questions people ask
Is there a legal maximum for the security deposit?
No. Singapore law does not cap it; the amount is agreed between landlord and tenant and written into the tenancy agreement.
Can I use my deposit as the last month’s rent?
Not under the official templates, which say the deposit cannot be used to set off rent. Pay the final month and claim the deposit back at handover.
Will CEA help me get my deposit back?
No. CEA says deposit disputes between landlords and tenants are private contract matters outside its remit. The Small Claims Tribunals can hear them.
Does losing my job trigger the diplomatic clause?
Under the template wording, ceasing to be employed is one of the triggers, but only after the minimum months written into your agreement have passed.
Sources: CEA, the revised tenancy agreement templates; DPTWG, tenancy agreement template for HDB flats; DPTWG, template for private residential properties; CEA, deposit disputes outside its remit; Judiciary, Small Claims Tribunals. The Address explains; it does not advise.
Read next: Renting a Room or a Whole Flat · Rental Stamp Duty in Singapore · Property Agents in Singapore · Back to The Address
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