SHORT-TERM home rental, or "peer-to-peer property rental", is just one aspect of the sharing economy, based on the premise that unused value is wasted value. Such rentals are already popular and have proven to be a viable alternative to hotels in many parts of the world.
Before we dismiss this industry as unworkable, we should consider if a properly regulated system may, in fact, be a boon rather than a bane.
In Singapore, accommodation for visitors is not just expensive but often unavailable during peak periods, such as major holidays or events like Formula One races.
In the private health-care industry, for example, I often hear of foreign patients cancelling their appointments here as hotel rooms are unavailable. Foreign patients seeking treatment here are already staying (probably illegally) in apartments in Orchard and Chinatown.
If short-term rentals are legitimised, the country will earn more tax revenue.
Problems such as overuse of common amenities or loss of privacy can be managed with regulations. For instance, HDB flats should not be allowed to offer short-term rentals, since they are subsidised housing.
Private condos can choose to allow such rentals if strata title members agree to them, and adjust the by-laws accordingly.
There is no guarantee that these condos' prices would fall. Demand for such apartments may go up if buyers see more potential income streams.
Landed private housing, such as semi-detached and terraced houses, should be allowed to take part as long as tenants abide by existing laws. If they are noisy or cause congestions, police action should suffice.
Owners must be held accountable and keep proper registers of tenants to ensure proper tax submission.
If properly regulated, this will make our hotel industry more competitive and take our tourism industry to the next level.
Huang Shoou Chyuan (Dr)
Before we dismiss this industry as unworkable, we should consider if a properly regulated system may, in fact, be a boon rather than a bane.
In Singapore, accommodation for visitors is not just expensive but often unavailable during peak periods, such as major holidays or events like Formula One races.
In the private health-care industry, for example, I often hear of foreign patients cancelling their appointments here as hotel rooms are unavailable. Foreign patients seeking treatment here are already staying (probably illegally) in apartments in Orchard and Chinatown.
If short-term rentals are legitimised, the country will earn more tax revenue.
Problems such as overuse of common amenities or loss of privacy can be managed with regulations. For instance, HDB flats should not be allowed to offer short-term rentals, since they are subsidised housing.
Private condos can choose to allow such rentals if strata title members agree to them, and adjust the by-laws accordingly.
There is no guarantee that these condos' prices would fall. Demand for such apartments may go up if buyers see more potential income streams.
Landed private housing, such as semi-detached and terraced houses, should be allowed to take part as long as tenants abide by existing laws. If they are noisy or cause congestions, police action should suffice.
Owners must be held accountable and keep proper registers of tenants to ensure proper tax submission.
If properly regulated, this will make our hotel industry more competitive and take our tourism industry to the next level.
Huang Shoou Chyuan (Dr)
