What an extension means for a landlord
The Landlord Rental Protection Plan can be moved to a new tenant when the old tenant terminates early, so the protection you already paid for is not wasted. It applies only where the replacement tenant passes credit check, and only for units renting from RM800 to RM5,000. The plan is the SPEEDHOME managed rental-risk system that sits behind SPEEDHOME landlord services and Zero Deposit — not a financial guarantee product, and not every unit qualifies.
The extension is the practical reason a landlord does not have to buy a fresh plan every time a tenant leaves mid-term. This page walks through how the cost is prorated, how carried-over coverage is reduced after a claim, when to renew instead, and the 23-month hard limit. It also states plainly what an extension cannot do — it is not a substitute for screening, a stamped tenancy agreement, or proper move-in and move-out evidence.
How an extension works, in plain steps
Buy the plan for 12 months, and if the tenant leaves early with no claim, transfer the remaining cover to the next qualified tenant — the clock keeps running, it does not pause.
The original Landlord Rental Protection Plan is sold as a 12-month term tied to a tenancy at a stated rent and package tier (Basic or higher). When the current tenant terminates the contract early and you find a replacement, the plan can continue to cover the new tenancy instead of expiring with the old one, provided:
- The plan is still inside its validity period.
- No claim is pending or unpaid against it.
- The new tenant is qualified under credit check.
- You have not exceeded the 23-month cumulative extension limit.
Two rules shape every extension decision:
| Rule | What it means for the landlord |
|---|---|
| Validity does not pause | The 12-month clock keeps running during any vacancy or gap between tenants. There is no "freeze" while the unit is empty. |
| Coverage does not reset | Whatever coverage is left after any prior claim is the coverage the new tenant inherits. It does not refill. |
| Rent and package stay fixed | The plan continues on the original rental price and package tier — it is not re-priced to the new rent. |
| Extension caps at 23 months | A single plan can be extended repeatedly until it has run 23 months in total; after that a new plan is required. |
The 23-month ceiling is why an extension is a short-term bridge, not a permanent substitute for renewal.
What the extension costs and how it is prorated
You pay a prorated amount based on the remaining extended months of the new tenancy, not the full 12-month price again — and if you have made no claim, the coverage you carry over is the full original amount.
Cost on extension is charged on a prorated basis across the extended months of the new tenancy. Where the original term had months remaining, the new tenancy inherits that period at the prorated price rather than a fresh full-term fee. The rental protection coverage ceiling page explains the underlying package structure and the maximum cover the plan offers.
The monthly-collection side of the product carries a 1.88% processing fee on collected rent, and the plan is only available for units renting from RM800 to RM5,000. These are operator product terms, not statutory figures — Malaysia has no statutory residential rent-deposit cap, and deposit and protection amounts are governed by the tenancy agreement and the product terms, not by law.
| Situation | Cost on extension | Coverage carried to new tenant |
|---|---|---|
| No claim made on the plan | Prorated for extended months only | Full original coverage |
| Minor claim made | Prorated for extended months | Reduced by the claimed amount; balance only |
| Major claim made | Prorated for extended months | Coverage reduced so far that a fresh plan is advised |
Worked example: two claims on one plan
A real tenancy shows how coverage erodes claim by claim, and why a major claim usually tips the decision from extension to buying a new plan.
Take a 12-month tenancy from 1 January 2020 to 31 December 2020 at RM1,000 monthly rent on the Basic plan. The original coverage limits are:
| Cover | Original limit |
|---|---|
| Loss of rental | Up to RM2,000 (subject to 20% excess) |
| Inconvenience benefit | Up to RM1,000 |
| Accidental damage or theft | Up to RM15,000 |
Case 1 — minor claim
The tenant moves out early without serving the required two months' notice, but you secure a replacement tenant quickly. The outgoing tenant left a damaged door knob and unpaid utilities. Loss: outstanding utilities RM100, door knob RM50. You claim from the inconvenience benefit, leaving an inconvenience balance of RM850.
The coverage that carries to the new tenant is the balance only:
| Cover | New coverage after minor claim |
|---|---|
| Loss of rental | Up to RM2,000 |
| Inconvenience benefit | Up to RM850 |
| Accidental damage or theft | Up to RM15,000 |
Here, extending the plan to the new tenant and paying only the prorated amount is sensible — the bulk of the coverage is intact.
Case 2 — major claim
The tenant leaves with two months of unpaid rent, RM800 of unpaid utilities, and RM100 of cleaning. Loss: rent RM1,600 (80% of the two months' rent under the Basic plan), utilities RM800, cleaning RM100. After this is approved and reimbursed:
| Cover | New coverage after major claim |
|---|---|
| Loss of rental | RM0.00 |
| Inconvenience benefit | Up to RM100 |
| Accidental damage or theft | Up to RM15,000 |
With the rental cover exhausted and the inconvenience benefit nearly gone, buying a new Landlord Rental Protection Plan is the better decision than extending.
When to extend vs buy a new plan
Extend when you have made no claim or only a minor claim and most coverage is intact; buy a new plan after a major claim or once you are near the 23-month cumulative limit.
| Signal | Better choice | Why |
|---|---|---|
| No claim, plan months remaining | Extend | Full coverage carries over; pay only prorated cost |
| Minor claim, majority of cover left | Extend | Balance still meaningful; renewal wastes the paid term |
| Major claim, rental cover exhausted | Buy new plan | Remaining coverage too low to be useful |
| Plan approaching 23 months total | Buy new plan | Extension cap reached; cannot extend further |
| New tenant rent much higher than old | Buy new plan | Plan stays priced at the old rent; higher exposure needs fresh cover |
The product terms and a full breakdown of the package sit in the SPEEDHOME Product Disclosure Sheet, which your landlord onboarding contact can supply. The claims transparency with SPEEDHOME page explains how an approved claim is reimbursed and documented.
The two OTR features that protect your cash flow
On-Time Rental and Overstay Cash Defender pay you when the tenant pays late or stops paying, so your rental income arrives on time even while the recovery process runs.
Two features inside the plan target the most common landlord cash-flow gap:
| Feature | What it does | Reset rule |
|---|---|---|
| On-Time Rental (OTR) | Pays your rental income on time even when the tenant pays late or stops paying | Can be activated up to 2 times continuously; resets only when the tenant pays their rent |
| Overstay Cash Defender | Keeps paying your monthly rental if the tenant stops paying while still occupying the unit | Tied to the overstay and recovery process |
| Inconvenience benefit | Covers smaller losses such as minor damage and unpaid utilities | Upgradeable on request |
These are product features of the SPEEDHOME managed rental-risk system, not a financial guarantee product, and not every unit qualifies. Lawful recovery of possession still runs through the proper process — a landlord cannot lawfully recover a unit by locking the tenant out, removing doors, or disconnecting water or electricity; recovery of possession goes through the lawful process.
Short-term tenancy surcharge
For a short-term tenancy, a surcharge percentage is applied to the rent and the tenant can pay it as a lump sum in month one or spread it across the tenancy.
The calculation is: surcharge % x rental price = surcharge amount. The tenant then chooses whether to pay that amount as a single lump sum in the first month or divide it over the tenancy. The specific surcharge percentage is set per tenancy in the product terms — confirm the figure on your own plan before quoting it to a tenant, since it is not a fixed statutory rate.
The SPEEDHOME-only angle: extension is screening-plus-evidence, not a shortcut
An extension only transfers a paper plan — it does not transfer the tenant's quality. The replacement tenant must still pass credit check, and your handover evidence is what makes any future claim payable.
The honest framing is that the Landlord Rental Protection Plan supports screening and documentation, it does not replace them. Three things decide whether an extended plan actually pays out when a problem appears, and all three sit with the landlord, not the plan:
| What protects the tenancy | Where the landlord controls it |
|---|---|
| Replacement tenant quality | Credit check at onboarding before the extension is activated |
| Damage and condition proof | Move-in photos, inventory list, and defect acknowledgement at handover |
| Payment and default record | Written agreement, payment trail, and renewal review before extension |
This is why SPEEDHOME treats Zero Deposit, the Landlord Rental Protection Plan, and screening as one stack rather than separate products: the plan is the moat, but the moat only holds if the gate (credit check and evidence) is closed at onboarding. For the tenant-side view of what landlords look for, see common rental violations and how to deal with them; to list or extend a unit, start from SPEEDHOME landlord services or browse the wider where to rent in Malaysia hub.
FAQ
Can I transfer the Landlord Rental Protection Plan to a new tenant?
Yes, if the plan is still valid, no claim is unpaid, the new tenant passes credit check, and you are within the 23-month cumulative extension limit. You pay a prorated amount for the extended months; the coverage carries over at its remaining balance.
Does the plan validity pause when the unit is empty?
No. The 12-month plan period keeps running during any vacancy or gap between tenants. It is not frozen, which is why finding a qualified replacement tenant quickly matters for the value of an extension.
What happens to my coverage after I make a claim?
The coverage reduces by the claimed amount and only the balance carries forward to the next tenant. After a minor claim most cover remains; after a major claim — where rental cover is close to exhausted — buying a new plan is usually the better call.
What is the maximum period I can keep extending the same plan?
A single plan can be extended repeatedly up to a cumulative 23 months. After that, you must buy a new Landlord Rental Protection Plan to continue cover.
Is the Landlord Rental Protection Plan the same as insurance?
It is the SPEEDHOME managed rental-risk system that replaces the upfront cash deposit, not a financial guarantee product, and not every unit qualifies. For end-of-tenancy damage beyond fair wear and tear, the standard protection claims process applies. Zero Deposit is the same managed rental-risk system extended to eligible units.
What rent range does the plan cover?
The plan applies to units renting from RM800 to RM5,000, with a 1.88% processing fee applied to monthly rental collection. These are operator product terms, not statutory limits — confirm the current terms on your own plan before quoting them.