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Renting to Co-living Companies Buyers May not get loan.

Renting to Co-living Companies Buyers May not get loan.

Renting to Co-living Companies Buyers May not get loan when you want to sell

When Property Owners looking to sell their property with a tenancy, usually the banks want to see the Option to Purchase as well as the Tenancy Agreement and the Cert of Stamp Duties.

Many people including property agents may not be aware that the banks does not accept those leases that is rented to co-living companies and you may not be able to refinance your loan with another bank. ( Please check with your preferred banks and just act with prudence. I believe would be also case to case basis and depending on banks.( This blog is just a informational purposes only,  and should not be taken as legal,business, tax, or investment advice.)

Lenders(Banks) exhibit particular caution when considering loans for properties rented to students due to several factors that distinguish this type of rental. High turnover rates are a significant concern, as students often rent for short periods, typically the academic year, which can result in vacancies during summer months. This seasonal rental pattern may lead to inconsistent rental income, making it challenging for property owners to maintain steady cash flow and meet mortgage obligations. Furthermore, properties rented to students carry a perceived higher risk of damage. This perception stems from concerns about less mature treatment of the property by younger tenants, potentially leading to more frequent and costly repairs and maintenance.

Another factor influencing lenders’ decisions is the need for higher down payments on these properties. This requirement is a direct response to the aforementioned risks, as a larger down payment decreases the loan-to-value ratio, thereby reducing the lender’s exposure to loss. For example, while a typical residential property might require a down payment of 20%, a property intended for student tenants might see this figure increase significantly, depending on the lender’s assessment of risk. This approach allows lenders to safeguard their investments by ensuring that property owners have more equity in the property from the outset, which is thought to correlate with a higher level of commitment to maintaining the property and securing reliable tenants. #singapore #property #landlord #buycondosg #coliving #rentsg ♬ Beat Type 90s Madrugada Relaxar – Beatdohostil

Reasons and Problems we faces with reference to response from the banks.

  1. Higher Risk with the bank when requires to refinance.
  2. Occupiers may change from time to time. the occupier changes all the time. Not a Permanent Arrangement,
  3. The rental collections from the individual tenants may not be regular.
  4. The house is financed should be for Residential Use and not for commercial or business intent.
  5. Banks cannot finance property that’s is made into dormitory style for students or workers. The concern is higher wear and tear due to having more residents in the unit
  6. For all resale and refinance will require Valuers to do inspections and indicate in the valuation report that it’s co-living or when the tenancy agreement indicates the issue arises. Rooms Available for Rent. (Co-living) Location: 23 West Coast Rise. Monterey Park Condo. For the V360 for each Rooms: #rentalsg #singapore #condoforrentsg ♬ original sound – Gary Lim


At, we have help many landlords to rent out their properties to family tenants as well as co-living operators. While landlords has a lot of reservations towards the co-living, we have some interpretations that may or may not be valid.

It will be good to speak to us and let me give you more sound advice whether which options would be more suitable for your property when you are looking to rent out for long term.

Conclusion: Renting to Co-living Companies Buyers May not get loan.

We have property landlords that wants to do co-living themselves because they feel that they can get more yield from the property. You can either rent out the rooms yourself or you let the Co-living Companies or a Property Manager to handle it for you.

Other Articles: Selling Your Rented Out Property


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