Co-Living Management Cost Explained in Singapore
Hi, Here we share fees and some realities behind the management of co-living in Singapore’s private residential market. As per URA rules, 3 months is the minimum rental period for all private residential properties in line with laws that have helped kick-start the co-living industry.
The majority of co-living operations in Singapore are private residential fully furnished and equipped (and sometimes with cookware & appliances, Wi-Fi, smart home etc. While a long-term lease is traditionally for 12-24 months with just basics usually included in the apartment by the landlord, co-living spaces have a more fluid tenant base with a 3-month stay (aside). But this requires more prescriptive management of tenants including tenant turnover, shared infrastructure maintenance, community-building.
The pricing scheme for co-living management in Singapore reflects the higher-touch service business it is. From market feedback Full full-service co-living operators generally charge ~20 – 25% of the rental to the Renters.
Usually they will Max out the number of Occupiers to 6 or 8 person based on URA.
Unlike in overseas of paying a high property management fees like 20-25%, the strata unit’s landlord would still enjoy the hands off approach renting to the Co-living Operators and pay the same expense to their property agents.
And the property agents will manage the co-living companies at no additional costs.
That also includes monitoring and tracking the occupant’s validity of the work passes and legal entry in Singapore.
https://buycondo.sg/categorys/1-bedroom-condos-for-rent/
For management of full service co-living (apartments in Singapore.
Landlord does not require to be worried of the higher frequency tenant turnover management, maintaining furnished units and shared spaces, community events and tenant support required 24/7 and monthly housekeeping services plus utility/internet management.
For Renters (Monthly Costs Comparison)
Monthly Renting Costs (Compared to 2024 Market Rates in Singapore for Private Condominiums):
Based on 2024 Singapore market rates for private condominiums.
| Cost Components | Traditional Long Lease (12 months) | Co-Living (3-6 months) |
|---|---|---|
| Base Rent (1 Room) | S$2800-3,200 | S$1,200-1,800 |
| Utilities | S$80-120 | Included |
| Internet | S$30-50 | Included |
| Cleaning Service | Self-managed | Included |
| Furniture | Self-furnished or +15-20% for furnished | Included |
| Security Deposit | 1 month (1 Year), 2 months (2 year) | 1 month |
| Agent Fee | 0.5-1 month (one-time) | None |
| Contract Period | 12 months minimum | 3-6 months |
| Initial Setup Cost | S$5,000-8,000 | S$1,200-1,800
|
Please Check out the exact expenses for both tenants and landlords.
For Landlords (Revenue & Costs – Average 2 bedroom unit in Singapore):
Based on a typical 2-bedroom condo unit in Singapore
| Components | Traditional Long Lease | Co-Living Partnership |
|---|---|---|
| Monthly Gross Rental | S$4,000-5,000 | S$4,500-5,500 |
| Management Fee | 4-8% of rent | 4-8% of rent |
| Occupancy Rate | 100% | 85-90% – Invalid to Landlord |
| Maintenance Costs | Landlord’s responsibility | Included in management fee |
| Furnishing Costs | Minimal or none | S$15,000-25,000 (initial setup) |
| Annual Net Return* | 3.5-4% | 4-5% |
| Tenant Management | Minimal | Full service |
| Property Upkeep | Self-managed | Managed by operator |
Those are approximates of current market rates in Singapore. Rates may vary depending on location (CCR, RCR, OCR), property quality, and demand, co-living operator and type of services provided.
Studio Apartment for Rent for Long Term:
Conclusion : Co-Living Management Cost Explained in Singapore
The co-Living management fee structure in Singapore is indicative of the operational needs and delivery that they consider necessary as a value-adding service. This involves URA regulations, lease cleaning, and tenant screening & documentation, property maintenance, community building, professional housekeeping, utility and internet management as well as exhaustive 24/7 support services. Co-living management in Singapore is something new, and the services here are a mix of hospitality services & real estate which also have to conform to the URA minimum 3-month stay requirement specifically. Management fees give some indication of the full scope of services and operational intensity required to manage top tier co-living spaces.
If you want to know more about co-living management services, do reach out to us at email. Thank you for reading, and hopefully, that helps the cost structure for co-living management within Singapore.
Look out for our Blog we will be sharing next for the Workflow charts when getting a Tenant, handing over process and more..
