All About Renting

If you are thinking of renting or leasing a property, we have a team to assist you in sorting out your tenancy/leasing process including sourcing for properties in suitable locations for you. The common queries you may have with regards to tenancy/leasing are listed out below for your easy information.

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What is the minimum term of tenancy allowed ?
Most tenancy have a minimum tenancy period of 2 years with an option to renew for 1 further year. A longer tenancy period will allow for the tenant to lock in the rental rate in a growing property market.A lease period would be more than 3 years.

What is the difference between a tenancy and a lease?
If the contract term is three (3) years or less, it is called a tenancy. If the contract term is beyond three (3) years, it is called a lease. Legally, leases are registrable with the Land Office and the lessees have a registered interest in the land upon registration.

Is a Tenancy Agreement renewable once expired, and if yes, which party would have the option to renew – the tenant or landlord?
It is the tenant’s option to renew subject to the landlord’s assent.

Who prepares the Tenancy Agreement?
The Tenancy Agreement is prepared by the Landlord’s solicitors.

Will I need to pay for preparation of the Tenancy Agreement?
Legal fees, though prepared by the Landlord’s solicitors are borne by the tenant.

Does the Tenancy Agreement requires stamping?
The stamp duty collected is a form of tax imposed by the Government of Malaysia. Stamping is compulsory in order for the Tenancy Agreement to be used and tendered as evidence at any Court of Law in Malaysia in the event of dispute.

How is the stamping fee calculated?
The stamping fee calculation is based on the amount of monthly rental payable and also the tenancy period. The formula is as below:

  • Yearly rental minus 2400 (as the first 2400 is not taxable) divided by 250. The amount is then multiplied by the number of years.
  • RM10 is added for the landlords copy. The total amount is payable by the tenant.

What are the requisite charges and payments to effect a tenancy?
In a standard Tenancy Agreement, the tenant needs to pay 1 month of rental as the booking deposit upon signing the Letter of Offer/Acceptance. Also, the tenant is required to sign the Tenancy Agreement within 14 days from the date of acceptance and play 2 months rental as a security deposit and 1/2 month rental as a utility deposit, plus stamping and disbursement fees.

What if the tenant/landlord terminates the tenancy agreement before the agreed term?
Essentially, the tenancy will require the injured party be compensated for the remainder of the tenancy, but depending on the landlord there might be an exit clause that will see the injured party compensated at least 3 months rental, giving them enough time to find a new tenant/premises and covering losses. These are subject to the agreement of both parties and needs to be provided by the solicitors in the Tenancy Agreement.

What utilities does the tenant have to pay for?
The tenant is required to pay for the electricity consumption, telephone usage, internet provider subscription, additional satellite television subscription like Astro, water charges (if any) and sewerage charges (if any) Indah Water. Maintenance of the common areas for condos are already factored into the rental.

Would a property up for rent or lease be Semi furnished and Fully furnished?
Semi-furnished and fully furnished properties are readily available for residential or commercial properties. The additional rent for this luxury will be a private arrangement between the landlord and the tenant.

Reinstatement of the premises
Most Tenancy Agreements unless otherwise stated requires the tenant to reinstate the premises to a bare space. This is done at the cost of the tenant.

What documents are needed when signing a Tenancy Agreement?
When signing a tenancy agreement the following forms will need to be filled up for legal purposes

  • Residential Tenancy Agreement
  • Length of Tenancy
  • Rent
  • Additional Terms
  • Security Deposit and Pet Damage Deposit  

Are rental deposits affected if there is a review in utility rates?
If there are changes in quick rent and assessment by the authorities, tenants are responsible to top up their deposits and failure to do so would make them liable to pay penalty.