When renting a property in Malaysia, we tend to get nervous when we're unsure of the process. Before you proceed in renting a home, ensure you've read the leasing agreement provided by the landlord properly, prepared stamp duty and legal expenses, verified the landlord's history, and viewed the property.
Before signing the contract, both you and the landlord should discuss the terms of the agreement. After signing, both of you will be obligated by the terms specified.
It is so often that landlords create their tenancy agreements, however, it's best to have them evaluated by a lawyer of your own. This is to ensure that whatever is written is reasonable and protects both parties.
1. Tenancy Period and Option for Renewal
Any rental agreement that lasts more than three years is considered a lease, not a tenancy. Instead, if you're renting on a monthly basis, make a note of it.
State the date on which the contract was signed, including the end date of the rental period.
Include terms that allow the tenant to renew or extend the tenancy for a set amount of time, subject to exceptional conditions.
2. Specifications of the property
If you are renting out your home, specify the type of home being rented, its location, and the unit number for highrise properties such as condos. Clearly state, if you're renting out the entire flat or just a part of it, such as a room.
It's preferable to mention the property's condition whether it requires repairing, furnishing, or does it include electrical appliances such as a refrigerator or air conditioner?
If provided, the landlord must include an inventory in the agreement, and the tenant must validate the existence and condition of these goods before signing.
3. Monthly Rent
Although rent may normally be negotiated, most landlords have a set monthly rental price in mind.
It is best to make sure you and your landlord are on the same page about how much this fee will be. A specific date for when the rent is due should be included in the agreement.
The basic guideline is that the money should be paid by the first of every month, but if necessary, you may work out a somewhat later date with your landlord.
You should also specify the payment process of your monthly rent. Be sure to keep the receipts for every payment made.
4. Security deposit
When signing the leasing agreement, you may make a security deposit that is commonly equal to two months' rent. If you damage the property or its contents beyond repair, or if your rent is overdue, the landlord will keep your deposit.
If you opt to quit your tenancy before the agreed-upon date, your money may be forfeited as well. However, if your tenancy goes smoothly, your landlord should return your security deposit in full.
Make sure your leasing agreement has a term stating when your landlord is required to reimburse your security deposit.
Read more about rental at 4 Dangers of Multiple Housing Loan Submissions for Property Financing.