More Singapore landlords turn to multi-tenant rentals for higher returns

SINGAPORE: More landlords in Singapore are converting their properties into multi-tenant rentals as they seek to boost rental income. Some co-living operators say they have seen up to a fourfold increase in such enquiries from property owners over the past year. The shift comes as the private rental market stabilises after years of rising rents, prompting some landlords to rethink the traditional single-tenant model. Ms Josephine Liu is among property owners making the shift. She spent S$200,000 (US$155,000) converting her 30-year-old landed home in Pasir Panjang into eight rental units. Most of the units look similar to a studio apartment, with its own kitchenette, bathroom and washing machine. Ms Liu said she decided to switch to the multi-tenant model after finding that renting to a single family did not generate enough income to cover her mortgage.“I had a condo unit before, (from) 2020 to 2023, renting out to a family. I would be at least 20 to 30 per cent short in terms of paying my mortgage,” she said.As she has a full-time job, Ms Liu engaged a co-living operator to manage the property. Before proceeding with the renovation, she carefully worked through the finances to ensure the higher rental income could justify the investment and management costs. “I (went) through the numbers repeatedly, and after paying off the management company, the remaining amount is still way better than if you rent it to (one) family,” she said.Ms Liu said the model has paid off, with her rental revenue increasing by about 50 per cent.Property investor Arthur Lim also opted for the multi-tenant model, after identifying a city-fringe condominium with a layout allowing him to carve out two extra rooms with only minor renovation works.“I saw potential to create additional rooms in the large living area that is enough for me to place the basics – a bed, a study table, a wardrobe,” said Mr Lim.His six-room rental unit is now almost fully occupied throughout the year.