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Duo who rented out condo units via Airbnb fined $60,000 each

Yao Song Liang (left) and Terence Tan En Wei seen leaving the State Courts on 16 January. (AP file photo)
Yao Song Liang (left) and Terence Tan En Wei seen leaving the State Courts on 16 January. (AP file photo)

Two former property agents who provided short-term stays at a condominium were fined $60,000 each at the State Courts on Tuesday (3 April), in the first prosecuted case of its kind in Singapore.

Terence Tan En Wei, 35, and Yao Songliang, 34, were earlier convicted on four charges each of renting out four units at the D’leedon condominium off Farrer Road, without the Urban Redevelopment Authority’s (URA) permission between 15 May and 21 June last year.

The pair, whose licenses have been revoked by the Council of Estate Agencies, had regularly advertised the units on online platforms such as home-sharing site Airbnb for between $198 to $335 per night. The pair admitted that they earned $19,000 over a period of five weeks.

The prosecution had sought a fine of $80,000 for each man, while the duo’s lawyer, Wong Soo Chih, had asked for a fine of $20,000 each.

During an earlier hearing, Deputy Public Prosecutor Selene Yap said that the pair’s total profits were likely to be much higher as they had been renting out D’leedon units since late 2015.

However, District Judge Kenneth Choo said he would disregard the profits earned prior to 2017 as these were not the subject of the two’s present charges.

On Tuesday, Choo said that there was premeditation and calculated planning involved as the duo had carried out a “profit-driven enterprise” with stays that ranged from five days to two weeks each time.

Both knew that providing short-term accommodation was not permitted had taken steps to avoid detection, said Choo. The judge also noted that residents of the condominium had complained to the URA and that some guests had been a nuisance during their stay.

Choo said that the fine would “serve as a strong signal to deter other like-minded individuals from actively pursuing such illegal business enterprises in order to gain quick profit”.

Wong told the court that both her clients would be paying their fines in full.

Speaking to reporters outside of court, Wong asked whether her clients had been sentenced prematurely given the the upcoming public consultation on home-sharing rules. She added that to individuals who are not legally trained, it may seem as if the authorities are open to home-sharing.

The government passed a new law in February last year that banned homeowners from renting out their properties on a short-term basis unless they obtained permission from the URA.

Under the same law, the rental period for a private residential property must be at least three consecutive months. Many Airbnb users typically pay homeowners to stay in their properties for days or weeks.

Related stories:

Two Airbnb hosts charged for renting out condo units, first such case in Singapore

Airbnb questions Singapore’s home sharing framework after duo charged for illegal condo rental