Singapore landlords increasingly favor multi-tenant rentals for higher returns

Landlords in Singapore are turning to multi-tenant rentals to boost their income, with some co-living operators seeing a fourfold increase in inquiries over the past year. This shift occurs as the private rental market stabilizes after a period of rising rents, leading property owners to reconsider the conventional single-tenant approach.

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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.

Josephine Liu, a property owner, invested S$200,000 to convert her 30-year-old landed home in Pasir Panjang into eight rental units. Each unit is designed like a studio apartment, complete with a kitchenette, bathroom, and washing machine. Liu explained that renting to a single family previously left her 20 to 30 percent short on her mortgage payments.

Liu, who has a full-time job, enlisted a co-living operator to manage the property. After careful financial analysis, she confirmed that the increased rental income would justify the renovation and management expenses. "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 stated. The multi-tenant model has proven successful, increasing her rental revenue by approximately 50 percent.

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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.

Property investor Arthur Lim also adopted the multi-tenant strategy. He identified a city-fringe condominium with a layout suitable for creating two additional rooms with minimal renovation. Lim saw the potential to add basic living spaces, a bed, study table, and wardrobe, within the large living area. His six-room rental unit now maintains near-full occupancy year-round.

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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.