. Obtaining F&B Approval:
Application Process: Renting to an F&B tenant requires approval from HDB. The process can take several weeks and involve inspections to ensure the unit meets safety and hygiene standards.
Potential Delays: Be prepared for potential delays in getting F&B approval. This might impact your rental timeline with the tenant.
Rejection Possibility: There's a possibility that HDB might reject the F&B application if the unit doesn't meet specific requirements.
2. Tenant Considerations:
Tenant's Experience: It's crucial to choose an F&B tenant with experience navigating HDB F&B approvals. They should understand the process and potential delays.
Lease Agreement: Clearly outline the responsibilities for obtaining F&B approval in the lease agreement. Specify who covers the application fees and potential renovation costs (if needed) to meet compliance.
Deposit: Consider a higher security deposit to mitigate potential damages during any renovation required for F&B approval.
3. Renovation Considerations:
Renovation Costs: Renovations to meet F&B compliance can be expensive. Ensure the tenant understands these costs and who will be responsible for them (you or the tenant).
HDB Requirements: Research HDB's specific requirements for F&B establishments in shophouses. This will guide any necessary renovations.
Approval Timeline: Factor in renovation timelines when discussing the lease commencement date with the tenant.
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