OTR and OCD Terms of Use

The terms and conditions of this Agreement govern your subscription of the On-Time Rental (“OTR”) and Overstay Cash Defender (“OCD”) services provided by Speedrent Technology Sdn. Bhd. (Company No: 201601005661) of A-G-23, Eve Suite, Jalan PJU 1A/41, Ara Damansara, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia (“Speedrent”) or (“SPEEDHOME”), a Malaysian entity, either itself or through its subsidiaries or licensees, via various electronic platforms such as the Speedrent mobile application or any other platforms designated by SPEEDHOME.

1.   Prerequisite

1.1. OTR – the OTR service is an add-on service only for subscribers of the Extended+ insurance plan. The subscriber must sign or have signed the tenancy agreement via Speedsign. OTR prohibits tenancy agreements which have more than one rental value across the stipulated tenancy period.

1.2. OCD – the OCD service is a complimentary service provided by SPEEDHOME only for subscribers who have purchased Allianz Landlord insurance coverage through SPEEDHOME, subject to the terms of Paragraph 3.

2.   SPEEDHOME’s Obligation – OTR

2.1. During the insurance policy’s insured period and on a monthly basis (excluding first month), SPEEDHOME will perform OTR transfer to the subscriber for an amount according to the outstanding balance or the selected insurance plan’s coverage limit, whichever is lower. Refer Clause 7 – OTR Threshold for illustration.

2.2. Each OTR transfer will be capped to one month’s rental and will be transferred no later than the monthly rental due date as stated in the tenancy agreement and only if there is an unpaid rental invoice. OTR transfers will be made only up to the monthly loss of rental coverage amount under the Allianz Landlord insurance purchased by the subscriber. Refer Clause 7 – OTR Threshold for illustration.

2.3. If the subscriber’s tenant pays SPEEDHOME after the due date, the funds will be made priority to be offset against any unsettled OTR made by SPEEDHOME and not be transferred to the subscriber.

2.4. “Due date” is referring to the latest amended due date agreed upon by the subscriber and tenant if the due date was amended after the tenancy agreement was signed. Should a particular month’s due date fall on a non-banking day or non-business day, SPEEDHOME will perform the OTR transfer on the due date.

2.5. SPEEDHOME will not perform OTR transfer to the subscriber if the tenant has more than two overdue rental invoices.

2.6. SPEEDHOME will issue a rental invoice to the tenant on behalf of the subscriber 7 days before the rental due date.

2.7. In the event that SPEEDHOME fails to perform OTR transfer on the due date, SPEEDHOME will refund the pro-rated OTR service fee to the subscriber. OTR will still be in effect until the end of the tenancy period. For the avoidance of doubt, Clause 4 still applies.

2.8. In the event that either tenant or landlord is served an early termination notice, the OTR service will be terminated immediately.

3.   SPEEDHOME’s Obligation – OCD

3.1. The OCD service shall not be available to subscribers:

(a) whose tenant pay the monthly rental directly to the subscriber and not through SPEEDHOME;

(b) whose subscriber does not possess an active Extended+ plan insurance policy purchased through SPEEDHOME to insure the said tenancy agreement for loss of rental coverage; or

(c)   any other exclusionary criteria SPEEDHOME may institute. (“Exclusions”)

3.2. Throughout the term of the tenancy period, OCD ensures that subscribers will receive the monthly rental, which shall be transferred by SPEEDHOME as soon as practicable after the due date (defined in paragraph 2.2) (“OCD transfers”) if:

(a) the subscriber’s tenant fails to make payment of the monthly rental for 3 consecutive months; and

(b) if the subscriber’s tenant fails to vacate the property or remains in the property.  

3.3. The OCD service shall no longer apply if the tenant vacates the property and returns all possession related to the tenancy. Claims for unpaid rent or any other claims by the subscriber to the subscriber’s tenant will then proceed in accordance with the tenancy agreement and applicable tenancy laws in Malaysia.

3.4. Under the OTR and OCD services collectively, the subscriber is entitled to receive the monthly rental from SPEEDHOME for a maximum of 11 months only, which shall consist of:

(a)  the first 2 months’ rental paid through the OTR; and

(b) an additional 9 months’ to be paid under the OCD, subject always to this OTR & OCD Terms of Use.  

3.5. In the event:

(a)  the conditions in paragraph 3.2 persist for more than 11 months;

(b) upon the expiry of the tenancy period (whichever is earlier); or

(c) the government imposes an eviction moratorium or any forms of temporary halts in evictions of tenants,

SPEEDHOME shall no longer be obligated to make the OCD transfers to the subscriber.

3.6.  If:

(a)  the tenancy agreement is terminated by SPEEDHOME;

(b) the subscriber has requested the subscriber’s tenant to make payment for the monthly rental directly to the subscriber, and not through SPEEDHOME; or

(c) SPEEDHOME deems that the conduct of the subscriber is detrimental to the business interest of SPEEDHOME, in SPEEDHOME’s sole discretion, 

the OCD service shall be terminated by SPEEDHOME immediately.

3.7. If the subscriber’s tenant pays SPEEDHOME for the monthly rentals in arrears, the funds will not be transferred to the subscriber if the subscriber has already received payment via the OTR and/or OCD service.

3.8. The subscriber shall provide his or her full cooperation to SPEEDHOME, and duly authorised SPEEDHOME, to pursue the legal remedies available under the tenancy agreement and under the law in respect of the unpaid monthly rental by the tenant and the failure of the tenant to vacate the property in a timely manner, including, but not limited to, strict adherence to SPEEDHOME’s instructions regarding:

(a) instructing the joint management body, management corporation, or the security providers of the property to deny the tenant entry into the property;

(b) instructing utilities providers to terminate utilities to the property;

(c) timely provision of documents and information to SPEEDHOME, solicitors, or other professional service providers;  and

(d) all other reasonable instructions given by SPEEDHOME.

SPEEDHOME shall be entitled to terminate the OCD service to the subscriber in the event the subscriber fails to comply with this paragraph 3.8.

3.9. The subscriber authorises SPEEDHOME:

(a) to recover from the tenant any unpaid rental and/or amount payable to the subscriber or SPEEDHOME by the Tenant;

(b) to retain or recover from the subscriber any insurance pay-outs received from Allianz  for up to two months’ unpaid rental by the subscriber’s tenant (if any); and

(c) to retain any such monies recovered from the tenant up to the amount paid by SPEEDHOME under the OCD service to the subscriber. Any monies recovered that are in excess shall be returned to the subscriber. 

3.10. The subscriber acknowledges that SPEEDHOME shall be entitled to recover from the subscriber the amounts paid under the OCD to the subscriber if the subscriber receives the monthly rental in arrear from the subscriber’s tenant.

4.   Subscriber Obligation

4.1. In the event that the tenant transfers the rental to the subscriber after the OTR transfer or OCD transfer is performed according to the unpaid invoice, the subscriber must transfer the unsettled and overdue amount to SPEEDHOME within 3 working days.

4.2. The subscriber must inform SPEEDHOME within 3 business days if:

(a)  The tenant has informed the subscriber that he/she wants to terminate the tenancy early;

(b) The tenant has run away;

(c)  The tenant has informed the subscriber that he/she has moved out or the tenant has moved out without notice; or

(d) The tenant has passed away.

4.3. The subscription is subject to 6% Sales and Services Tax (SST) and is to be paid by the subscriber.

4.4. The subscriber must ensure the accuracy of the bank account details as submitted to SPEEDHOME for the purpose of OTR transfer or OCD transfer. Any requested change in bank account details will be in effect only after 5 business days upon written notice to SPEEDHOME.

4.5. The subscriber must repay the unsettled OTR amount to SPEEDHOME if:

(a) The tenant did not settle the rental up to the OTR amount provided to the subscriber while the subscriber does not file for insurance claims;

(b) The tenant did not settle rental up to the OTR amount provided to the subscriber while the insurance claims approved didn’t offset against the unsettled OTR amount; or

(c) The OTR transaction is wrongly performed to the subscriber due to human error or system glitch while the tenant does not owe or owe the rental.

5.   Insurance Claims

5.1. If the tenant vacates the property with an overdue rental invoice, the subscriber must lodge a police report against the tenant and cooperate with SPEEDHOME in regard to the submission of documents for insurance claims.

5.2. In the event that the subscriber’s rental default claim proceeds is not approved or only approved partially to repay the unpaid rental amount by the tenant (but limited to the total of two months of rent), the subscriber must transfer the unsettled OTR amount (which offsets the claim proceeds after) back to SPEEDHOME. Please refer to Illustration 1 for further explanation.

Illustration 1 (Scenario: monthly rental as RM1,000 while the tenant has 2 unpaid and overdue rental invoices. 

 Insurance Claims Approved PartiallyInsurance Claims Not Approved
OTR amount (2 times OTR) RM2,000RM2,000
Rental Default Claim ProceedsRM1,100RM0
Subscriber Transfer Back to SPEEDHOMERM900RM2,000

5.3. SPEEDHOME will offset the OTR amount which is limited to 2 months’ of rental against the rental default claim proceeds approved by the insurance company.

6.   Terms

6.1. Except where the context otherwise requires, or unless these terms and conditions otherwise provide, all words and expressions used or referred to in this terms and conditions have the same meanings as provided for in the Tenancy Agreement (SPEEDHOME Software Service) & Supplemental Terms of Use.

7. OTR Threshold

7.1 The OTR payout will be capped according to the insurance plan purchased from Allianz General Insurance via SPEEDHOME. This will apply to all NEW and EXISTING OTR subscribers for respective tenancy with OTR subscription.

7.2 The threshold limit will follow all of the following criteria:

(a) The OTR threshold limit the OTR which will not pay out more than the loss of rental coverage amount after the excess applied (This excess only applies to Basic insurance plan while Extended Plan will receive full);

(b) In the event that the subscriber has downgraded the loss of rental coverage which does not fully cover the rental as per tenancy agreement, the loss of rental payout will be capped at the selected plan plus RM100 as the maximum coverage range. For example, if you select RM2000 as loss of rental coverage, it will be covered up to RM2100 for loss of rental coverage; and

(c) In the event of a rental invoice being amended to higher or lower than the tenancy agreement stipulated rental rate due to prior rental deferment or staged rental rate arrangement, the OTR will be capped according to the selected coverage amount after excess or the rental invoice, whichever is lower.

7.3 Offset priority under OTR Threshold

(a) In the event that the tenant made any partial payment after the OTR paid out, the partial payment from the tenant will be made as first priority to offset against the unsettled OTR prior to payout to the landlord. For illustration, Tenant paid only RM1,500 for rental invoice of RM2,000 while OTR of RM1600 is paid to the subscriber prior to tenant’s partial payment, there will be no payout to the subscriber in regards to the partial payment of RM1,500 due to priority offset against the RM1600 OTR. Upon the tenant making the subsequent partial payment of RM400 to clear the outstanding, the landlord will then receive the balance of RM400.

Illutration’s terminology definition
Excess: For basic insurance plan, the loss of rent will be applied with 20% deduction for excess purpose which the unpaid rent will cover up to 80% only. For Extended or Extended+ insurance plan, there’s no excess
Downgrade: Insured choose to purchase a lower loss of rental plan instead of purchasing the insurance coverage same as the rental rate.
Partial payment: In the event that tenant made a partial payment prior to the OTR being performed, OTR will payout based on the LOR coverage amount after excess and the outstanding rental amount, whichever amount is lower

Illustration for Basic Insurance Plan

For simplicity, the following scenarios are based on RM2,000.00 monthly rental

Plan

Insurance Premium Selection

Rent Overdue Scenario

LOR Coverage / OTR Threshold

Rent Amount Not Covered under OTR

Basic Insurance Plan
(1x of Rental Rate)

Fully-insured
Premium:
RM 2000


LOR Coverage per month max Before Excess: RM 2100
(@100%)


LOR Coverage per month max After Excess: RM 1680
(@ 80%)

Completely Unpaid:
Fully Overdue = RM 2000

RM 1600
(RM 2000 * 80%)
RM 400
(RM 2000-RM 1600)
Partially Paid:
Tenant partial paid RM600 before OTR payout which indicates overdue RM 1400
RM 1120
(RM 1400 * 80%)
RM 280
(RM 1400-RM 1120)
Custom Payment Arrangement:
The rental was adjusted to a higher amount at RM3000 due to
any mutual arrangements and the rental is fully overdue at RM3000
RM 1680
Capped at LOR Coverage after Excess
RM 1320
(RM 3000-RM 1680)

Downgrade

Premium: RM 800

LOR Coverage per month max Before Excess: RM 900
(@100%)

LOR Coverage per month max After Excess: RM 720
(@ 80%)

Completely Unpaid:
Fully Overdue = RM 2000
RM 720
Capped at LOR Coverage after Excess
RM 1280
Partially Paid:
Tenant partial paid RM 600 before OTR payout which indicates overdue RM 1400
RM 680
Partially Paid:
Tenant partial paid RM 1600 before OTR payout which indicates overdue RM 400
RM 320
(RM 400 * 80%)
RM 80
Custom Payment Arrangement:
The rental was adjusted to a higher amount at RM3000 due to
any mutual arrangements and the rental is fully overdue at RM3000
RM 720
Capped at LOR Coverage after Excess
RM 2280
Illustration for Extended Insurance Plan

For simplicity, the following scenarios are based on RM2,000.00 monthly rental

Plan

Insurance Premium Selection

Rent Overdue Scenario

LOR Coverage / OTR Threshold

Rent Amount Not Covered under OTR

Extended
Insurance Plan
(1.25x of Rental Rate)

Fully-Insured

Premium: RM 2500

LOR Coverage per month: RM 2000

Completely Unpaid:
Fully Overdue = RM 2000

RM 2000
Same as the unpaid amount and equal to LOR Coverage
RM 0
Partially Paid:
Tenant partial paid RM600 before OTR payout which indicates overdue RM 1400
RM 1400
Capped at the unpaid amount
RM 0
Custom Payment Arrangement:
The rental was adjusted to a higher amount at RM3000 due to
any mutual arrangements and the rental is fully overdue at RM3000
RM 2000
Capped at LOR Coverage
RM 1000

Downgrade

Premium: RM 1000

LOR Coverage per month: RM 900

Completely Unpaid:
Fully Overdue = RM 2000
RM 900
Capped at LOR Coverage
RM 1100
Partially Paid:
Tenant partial paid RM 600 before OTR payout which indicates overdue RM 1400
RM 900
Capped at LOR Coverage
RM 500
Partially Paid:
Tenant partial paid RM 1600 before OTR payout which indicates overdue RM 400
RM 400
Capped at the outstanding rental
RM 0
Custom Payment Arrangement:
The rental was adjusted to a higher amount at RM3000 due to
any mutual arrangements and the rental is fully overdue at RM3000
RM 900
Capped at LOR Coverage
RM 2100

* Please note that On-Time Rental (OTR) and Overstay Cash Defender (OCD) are products of SPEEDHOME and NOT Allianz Insurance.

Last Updated: 31st March 2021

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