Condo By-Laws Cannot Limit Owners Right to Rent Out Units Says BCA
Condominium by-laws cannot restrict owners’ right to rent out their properties, said the Building and Construction Authority (BCA) on 26 June. The authority was weighing in on the case of a Geylang condo, Casa Aerata, that passed two by-laws banning certain groups of foreign workers from living there. BCA clarified that by-laws made by MCSTs cannot restrict an owner’s right to transfer, lease, mortgage or otherwise deal with a property.
Ruling 26 Jun
Casa Aerata
Passed by MCST
Share Value Needed
Casa Aerata: The Case in Question
Casa Aerata is a 78-unit condominium in Geylang. In March 2025, its management corporation strata title (MCST) passed a by-law banning work permit holders from residing in the condo and prohibiting owners from housing others for periods of less than three months.
A second by-law was enacted in January 2026, stipulating that only “eligible foreign employees” such as Employment Pass holders, S Pass holders, and Malaysian or services sector Work Permit holders were allowed to rent units at the development. Owners were given until 31 March to amend existing tenancy agreements that did not comply, with a S$200 administrative fee imposed for non-compliance.
Only 12 owners attended the meeting when the first by-law was passed. Property lawyer Kok Yee Keong of Harry Elias Partnership noted that a by-law is valid even if a minority of owners passes it, as long as it receives at least 75 per cent of the share value of those attending the meeting, provided the requisite 21-day notice and 30-minute quorum waiting period were observed.
BCA’s Position and Remedies for Owners
In a Facebook post on 26 June, BCA clarified that by-laws made by MCSTs cannot restrict an owner’s right to transfer, lease, mortgage or otherwise deal with a lot. The authority stated that owners who disagree with any by-law can table a motion at the MCST’s annual general meeting (AGM) or an extraordinary general meeting (EGM) to amend or repeal the by-law.
Disputes over the validity of a by-law can also be brought before the Strata Titles Boards.
Frequently Asked Questions
Can a condo MCST ban owners from renting out their units?
No. BCA clarified on 26 June that condo by-laws cannot restrict an owner’s right to transfer, lease, mortgage or otherwise deal with a lot. Owners retain the right to rent their properties.
What happened at Casa Aerata?
The 78-unit Geylang condo passed two by-laws: one in March 2025 banning work permit holders from residing there and barring sub-three-month tenancies, and another in January 2026 restricting rentals to “eligible foreign employees” only.
How can owners challenge an MCST by-law?
Owners can table a motion at the MCST’s annual general meeting or an extraordinary general meeting to amend or repeal the by-law. Disputes over validity can be brought before the Strata Titles Boards.
Can a small group of owners pass binding by-laws?
Yes. A by-law is valid even if only a minority of owners attends the meeting, provided it receives at least 75 per cent of the share value of those attending and the requisite 21-day notice and 30-minute quorum waiting period were observed.
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