SINGAPORE – Airbnb has become one of the world’s most successful tech company in recent years and many Singapore home-owners have been renting out their apartments on the vacation-rental portal for attractive yields. However, a recent law passed by the Parliament on Monday will soon prohibit short-term rentals as well as Airbnb’s operations in Singapore.

The new law makes it illegal for home owners in Singapore to rent out entire apartments and rooms for a period of less than six months, unless they have received permission from the Urban Redevelopment Authority (URA).

This applies to both public HDB flats and private condominiums in Singapore.

Furthermore, the new law will also reduce the maximum number of unrelated tenants in private apartments to six, down from the current eight. Apartments rented to more than six unrelated tenants will be considered as dormitories and which would require URA’s approval.

 The URA received 608 complaints in 2016 regarding short-term rentals. The new laws are put in place so as to alleviate the situation and safeguard the residents in the neighborhood.

At present, the minimum rental period is set at six months.

Having said that, it is revealed that the URA is currently working on allowing a new category of private homes to be permitted for short-term rental. There is still a glimpse of hope for Airbnb Singapore as the URA is still considering allowing shorter term rental. But for now, Airbnb is still considered illegal.