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