What is the minimum term of tenancy allowed ?
Most buildings 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.

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 aggreement 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 aggreement?
The tenancy agreement is prepared by the landlords lawyers.

Will I need to pay for preparation of the tenancy agreeement?
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 agreeement 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 tenance 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 subscribtion, statelite tv and water if any and indah water. Maintenence 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 aggreement?
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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