Should I Raise My Rent in Singapore? The Landlord's Honest 2026 Guide
Your tenant's lease is expiring. The market has moved. Should you raise rent and risk losing them — or hold and keep a reliable payer? Here's the complete cost-benefit breakdown every Singapore landlord needs before making this call in 2026.
Property Management | Singapore Landlords | March 2026 CEA Licensed · mychoicehomez.com | 7 min read
Your tenant's two-year lease is expiring.
They pay on time. They take care of the place. They have never called you about a burst pipe at 11pm. In every landlord's ideal world, this tenant signs again, you both move on, and you do not think about the unit for another two years.
But the market has moved. Your property manager says you could get more. Your neighbour just re-rented at a higher rate. Your property tax went up. The question starts nagging: am I leaving money on the table?
It is one of the most common dilemmas in Singapore rental management. And most landlords get the answer wrong — because they calculate the upside but not the full downside.
Here is the complete picture.
The 2026 Singapore Rental Market: Where Things Actually Stand
Before running any numbers, you need the current market context — not 2022's.
Singapore private residential rents ended 2025 up 1.9% for the full year, reversing 2024's -1.9% decline. Rentify The current median monthly rent for private residential properties in Singapore is approximately S$4,300. Relocity
Rental growth in 2026 is expected to be moderate, supported by limited supply and a gradual rise in rental take-up rates. Era Private residential rents dipped -0.5% quarter-on-quarter in Q4 2025 — a seasonal softening typical of year-end — before the full-year figure settled into positive territory. Rentify
What this means for landlords: the market has stabilised after two volatile years, but it is not surging. You have pricing power — but it is measured, not unlimited. A sharp increase risks your tenant walking into a market where well-priced alternatives exist.
The honest starting point: if your current rental is already at or near market rate, the case for a significant increase is weak. If your unit has been below market for two years, a moderate correction is rational. The maths below will tell you exactly how rational.
The Core Question: What Does a Rental Increase Actually Net You?
Most landlords focus on the revenue upside. Few calculate the full cost of tenant turnover. Here is the complete model.
Assumptions:
- Current monthly rent: S$4,300
- Proposed increase: 10% (S$430/month increase to S$4,730)
- Agent commission for new 2-year lease: 1 month's rent = S$4,730
- Lease term: 24 months
Scenario 1: Your Tenant Accepts the Increase
This is the best case — and you should start here, because it is often more likely than landlords expect. A good tenant who values stability and has invested in the unit (curtains, fixtures, relationships with neighbours) has real switching costs. A 10% increase may be uncomfortable but not a deal-breaker.
If they stay: no agent fees, no vacancy, no risk. You collect an additional S$430/month × 24 months = S$10,320 over the lease term.
This is your reference number. Every other scenario is measured against it.
Scenario 2: Tenant Leaves, New Tenant Found Immediately
Your tenant declines the increase and moves out. You engage an agent, and they find a replacement within the same month.
| Revenue from new tenancy (24 months at S$4,730) | S$113,520 |
| Revenue from old tenancy (24 months at S$4,300) | S$103,200 |
| Gross additional revenue | S$10,320 |
| Agent commission (1 month) | -S$4,730 |
| Net additional profit over 24 months | S$5,590 |
| Net additional profit per month | S$233 |
For a 10% rent increase, you net S$233/month more — before accounting for your time spent interviewing tenants, coordinating viewings, and managing a transition period.
Scenario 3: Tenant Leaves, New Tenant Found in 1 Month
One month of vacancy is realistic in today's market. The rental market softened in Q4 2025, and price-sensitive tenants in some segments have more options than in 2022–2023. Rentify
| Gross additional revenue | S$10,320 |
| Agent commission | -S$4,730 |
| 1 month vacancy (lost rent) | -S$4,730 |
| Net additional profit over 24 months | S$860 |
| Net additional profit per month | S$36 |
You increased rent by 10%. You netted S$36/month more. That is not a typo.
Scenario 4: Tenant Leaves, New Tenant Found in 2 Months
Two months of vacancy in a softer pocket of the market — suburban OCR, or a unit that needs cosmetic work — is not uncommon. Some landlords also need to repaint, replace carpets, or do minor repairs between tenants.
| Gross additional revenue | S$10,320 |
| Agent commission | -S$4,730 |
| 2 months vacancy (lost rent) | -S$9,460 |
| Net additional profit over 24 months | -S$3,870 |
| Net additional profit per month | -S$161 |
You raised the rent. You lost money. This is not a hypothetical. It happens to landlords who calculate the upside and ignore the vacancy risk.
Scenario 5: New Tenant Requests a Renovation Contribution
This scenario is increasingly common in 2026. New tenants in a stabilising market sometimes negotiate a one-time renovation contribution — new curtains, a fresh coat of paint, replacing an aging appliance — as a condition of signing.
Add a conservative S$2,000 renovation contribution to Scenario 3:
| Net additional profit over 24 months | S$860 |
| Renovation contribution | -S$2,000 |
| Net result | -S$1,140 loss |
The Summary
| Scenario | Net over 24 Months | Net per Month |
|---|---|---|
| Tenant accepts increase | S$10,320 | S$430 |
| New tenant, found immediately | S$5,590 | S$233 |
| New tenant, found in 1 month | S$860 | S$36 |
| New tenant, found in 2 months | -S$3,870 | -S$161 |
| New tenant + renovation contribution | -S$1,140 | -S$48 |
The only scenario where a rental increase clearly works is when your tenant stays — or when a new tenant is found essentially instantly in a strong rental market. In 2026's moderating environment, that is not the base case.
The Factors That Change the Calculation
The model above is a framework, not a fixed answer. Three variables move the result significantly:
Your current rental vs market rate. If you are 15–20% below market, a correction is financially justified even with one month of vacancy. The gap is real and compounding. If you are already at or above market, the upside is marginal and the downside risk increases sharply.
Your location and demand profile. A 2-bedroom near Great World MRT or Upper Thomson MRT will attract replacement tenants faster than a 3-bedroom in a suburban OCR location without direct MRT access. Know where your unit sits in the demand hierarchy before you assume a fast turnaround.
Your tenant's profile. A long-term tenant who has been in the unit for 4+ years, personalised the space, and has children in nearby schools has very high switching costs. A new tenant who has only been there 2 years is more mobile. The stickiness of your current tenant changes the probability of each scenario above.
The Honest Verdict
Most landlords are better served by retaining a good tenant at a moderate increase — or even at the same rate — than chasing market-rate rents at the risk of a two-month vacancy.
The maths is clear: a single month of vacancy erodes almost all of a 10% rent increase over a 24-month lease. Two months turns a gain into a loss. Add agent fees and transition costs, and the case for a sharp increase is weak unless your unit is materially below market.
The practical approach for 2026:
- If your tenant has been reliable: offer a modest 3–5% increase. Frame it as inflation-linked, not opportunistic. Most good tenants will accept a reasonable increase rather than go through the friction of moving.
- If your unit is significantly below market: a correction is justified, but phase it. A 10% increase now and a potential further adjustment at the next renewal is more likely to retain the tenant than a 15–20% jump.
- If your tenant has already indicated they are looking around: price competitively to fill the unit quickly. Vacancy is always more expensive than a slightly lower rent.
Want to Work Through Your Specific Situation?
The right answer depends on your unit, your location, your tenant's profile, and your holding plan. These are conversations James helps Singapore landlords navigate — without a predetermined agenda, and without the bias of an agent who earns more if you re-let.
Whether you are deciding on a renewal, managing a transition, or thinking about the long-term strategy for your investment property — this is exactly what the property management and advisory service is designed for.
📲 WhatsApp James at 91111173 CEA Licensed Property Consultant · PropNex · mychoicehomez.com Replies within the day · No obligation
Disclaimer: All figures in this article are for illustrative purposes only. Actual rental market conditions, agent commission structures, and vacancy periods vary by property type, location, and market timing. Please conduct your own due diligence and consult a licensed property advisor before making any rental pricing decision.
