SINGAPORE — From next year, flat owners looking to rent out their unit or bedrooms to non-Malaysian non-citizen tenants will be able to do so in periods of two years, up from the current cap of one-and-a-half years.

The increase in the maximum tenancy period will allow flat owners to have greater flexibility in ensuring a longer tenancy period with non-citizen tenants who may have work or immigration passes that are valid for two years, the Housing and Development Board (HDB) said in a statement on Tuesday (Dec 18).

Flat owners who are currently renting out their flat or bedroom to non-Malaysian non-citizen tenants with HDB’s approval may continue to do so for the remaining approved duration, the statutory board added.

These changes do not apply to tenants who are Singaporeans or Malaysians. The tenancy limit for such tenants remains unchanged at three years. Likewise, there are no changes to the minimum rental period, which remains at six months.

Tuesday's announcement is the second change in tenancy rules this year amid a sluggish rental market.

In May, HDB reduced the maximum number of tenants allowed in four-room and larger flats from nine to six, which it said was to minimise overcrowding and maintain a conducive living environment in public housing estates.

The number of approved applications to rent out HDB flats fell by 6.7 per cent to 11,216 in the third quarter of this year, compared to 12,024 cases in the second quarter.