Apart from renting, reselling, and owning a home, Singaporeans are always ready to expand on what they can do with their apartments. In recent years, many of us have ventured out of our homes to try and run businesses (not to mention Covid-19). But what exactly can you do from your apartment, and how profitable is this? As it turns out, things are very flexible.

More Singaporeans are running businesses from their homes.

One of the more interesting ideas we’ve seen recently is underground coffee. This is a halal, takeaway coffee shop only. We understand that the operator, Mr. Hasif, does not do this full time and has another job; But Friday through Sunday, you can swing by the Pasir Ris flat window (around $5 to $6, and you’ll need to order in advance) to pick up a quality cup of joe.

Another home business is Ms. Azlina Toming’s $1 Nasi Lemak, whose affordable Nasi Lemak has been in the news of late (she can still get 30 cents per order!). There is a minimum of 10 orders, but as most of you know, $10 sometimes pays less than two packages in some places.

Other examples we have seen include hairdressers in HDB flats and a housewife who runs a make-up studio in her flat. Some may be surprised to know that these businesses are completely legal in HDB flats, along with professional manicure/pedicure services. You don’t even need to seek approval (see below).

For many freelancers or gig workers, an HDB flat-office is practically a given. Self-employed photographers, writers, graphic artists, and musicians (with the right soundproofing setup, of course) tend to use their apartment as a business space.

This may be the result of high rental prices

When we ask why someone works from home, the most common answer we get is rent.

Even for businesses that can use a coworking space (definitely not Nasi Lemak or hair salons…), the cheapest options start around $180 per month. And costs around $250+ are too much. In more central areas, this can cost anywhere from $300 – $700 and up in full. Of course, these come with added perks like yoga studios, gyms, coffee shops and for some, massages.

When it comes to opening a store, it is simply beyond the reach of many. Realtors have told us that they pay at least $1,200 to $1,500 per month for a small store with good foot traffic in most locations. He noted that while there are options for $1,000 or less, these are mostly corner locations (eg, a corner of an existing store, such as a data card vendor in a clothing store) or in more convenient locations (eg, an obscure corner). industrial building).

About the setup common sense A hawker stall to sell nasi mak or other food… forget it unless you give your soul to it. Monthly rent is usually between $1,500 and $4,000, before factoring in service fees for cleaners or the cost of hiring a helper.

So what is allowed if you want to run a business in your apartment?

Contrary to popular belief, you do not need approval from HDB. Small size Home businesses. Examples of “small scale” include common educational businesses, as well as hairdressing or baking.

(Note however that the maximum limit for education services is three students at a time and massage services are not allowed in HDB flats).

HDB guidelines are as follows

1. The business must be conducted by the owners, registered residents or tenants of the apartment (with the consent of the apartment owners). Third parties and non-resident employees are not allowed to work in the apartment.
2. No advertisements, signs or posters shall be displayed on the apartment.
3. There should not be any external traffic introduced to the site or any negative impact on the environment and the living environment such as noise, smoke, smell, dirt, sewage or dust or danger to the local residents.
4. Do not use heavy equipment or items that are not for household use.
5. No extensive storage or frequent loading and unloading of items, especially for large items or using the apartment as a distribution center.
6. The activities must comply with the rules and regulations of other authorities (e.g. Singapore Food Agency, Food Safety and Hygiene, Fire Safety and Shelter Department, Fire Safety Requirements).

Pay special attention to point 1: Third parties and non-resident employees are not allowed. This rule is one of the most common. For example, if you run a bakery in your apartment, and hire a relative as a helper, this would technically break the rules (since your relative is a non-resident).

For point 6, the rules are a little more vague on group buy activities. Technically, group buying activities can Turn your apartment into a distribution center. Scale is a big thing here – if your apartment is getting crowded and the neighbors are complaining, you may be breaking the rules. That said, group buying can add value to the community, and it’s often a way to get to know your neighbors – so we’d argue that’s one of the nicest benefits.

Note that the rules are different for the home office

The HDB Home Office scheme is a completely different matter. This plan will do Obtain permission from HDB; And one important difference is that you can hire up to two non-resident employees.

So if your HDB flat is registered as a Home Office (HO), you can go ahead and hire your uncle, cousin, etc. to work with you on a daily basis. As a regular office. You can see the full requirements here, but we’ve highlighted some key points to keep in mind:

• You don’t need to own the flat to register as HO. All you need is the written permission of the apartment owner. You can use the apartment even if you are a tenant or registered owner.
• Electricity consumption and structural credit should not exceed the normal residential load. Keep this in mind before you set up a crypto miner or turn your apartment into a warehouse for heavy goods.
• No physical items may be sold in or around your apartment. must be. OfficeIt’s not a shop.

In case of HO, you can register your apartment address as business address. This is not something you would normally do. So if you want to register your entity with ACRA, it might be a good idea to get an HO license.

That said, the biggest worry about a home business or home office is that you may be one complaint away from closing. HDB is very sensitive about disruption to other residents – after all, if someone complains, the fate of your business may not be a priority.

Practically speaking, if you intend to run a business in the long term, using your apartment should only be a temporary solution. Use it to save and eventually go to a real store or office. You don’t want your business to be at the mercy of a busy neighbor.

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