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FAQ
What is the minimum term of tenancy
allowed?
Most vendors/owners ask for a minimum tenancy of 2 years
with an option to renew for additional 1 year. A longer
tenancy period allows the tenant to lock in the rental rate
in a growing property market.
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.
In a tenancy agreement of 2 + 1 years, whose option is it
to renew the tenancy, the tenant or landlord?
It is the tenant's option to renew.
Who prepares the tenancy agreement?
The tenancy agreement is prepared by the landlords
lawyers.
Will I need to pay for preparation of the tenancy
agreement?
Legal fees, though prepared by the landlords' lawyers are
borne by the tenant.
Why does the tenancy agreement need to be
stamped?
The stamp duty collected is a form of tax imposed by the
Government of Malaysia. It is necessary for a tenancy
agreement to be stamped so that it can be used and tendered
as evidence at any Court of Law in Malaysia.
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 kind of payments need to be
made in 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.
What utilities does the tenant have to pay for?
The tenant is required to pay for the electricity
consumption, telephone usage, internet subscription,
satelite tv, water if any and Indah Water. Maintainance of
the common areas for condos are already factored into the
rental.
Semi furnished? Fully furnished?
Semi-furnished and fully furnished are readily available
for residential property. 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? For example water,
electricity etc
If there are changes in quick rent and assessment by the
authorities, tenants are liable to top up their deposits.
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