One minute you’ve just signed your tenancy agreement, before you know it, your lease is up!
Now you are faced with making a big decision of either finding a new place to rent OR renew your lease to continue renting the same place.
Say you have decided to continue staying in the same rental, what do you do? Your old tenant agreement is most definitely expired, so everything that was agreed upon on that piece of paper is rendered null.
One of the options that you can do is, renew the lease agreement. Usually, this option is included in the existing tenant agreement in one of the clauses.
Now, what does it mean to renew a lease? Let us go through it below!
What Does It Mean To Renew A Lease?
In a situation where you like staying at your current rental and cannot bear to go through the process of searching for a new one, then you can opt for rent renewal.
This is also ideal for your landlord as they won’t have to go through the strenuous effort of searching for a new candidate and doing the tenant background check again, then you two can start negotiating a lease renewal.
Bear in mind that the process to renew the rental lease has to begin at least 90 days in advance before the lease expires.
This means in order to renew your lease you need to give a 90-day notice to the landlord.
If you wait to do so after the expiration date then you have to be staying elsewhere until the new rental lease is in place.
How Do Lease Renewals Work?
As mentioned earlier, the lease renewing process has to start at least 90 days before it is up, but how else do lease renewals work?
Do note that the steps to renew the lease for a landed house and renew the lease for apartments are the same. It applies the same with other types of rental property as well.
Renewing your rental lease means that you will go into renegotiating your tenant agreement. Remember to get it on black and white as an oral lease will not be considered binding.
This is where tenants and landlords can start finessing their lease term, repairing loopholes that they likely discovered from the previous tenant agreement.
You can negotiate rental costs, tenant and landlord obligations and even tenant duration should you want a longer or shorter-term than the previous agreement.
Similar to creating a tenant agreement, it is still better for both parties to hire legal personnel to look through and fine-tune the agreement.
Everything is still needed from having the tenants pay all the necessary deposits to pay for the stamp duty.
Then the landlord will also need to submit the agreement to Lembaga Hasil Dalam Negeri Malaysia before the new lease is legally put into place.
Is It Cheaper To Renew Lease?
The question of is it cheaper to renew a lease than it is to find other options? Let us put it into two different perspectives, one of the tenants and another of the landlord.
From the tenant’s point of view, should you decide to not renew your rental lease? Likewise, you will have to start house hunting and secure a new rental before the current lease is up.
Why such a tight deadline? This is because as soon as the lease is up there is no security guaranteed on the landlord’s side during the period of time.
From the landlord’s perspective, any damages incurred after the lease expiry. The landlord has no insurance for it, which is why the landlord has every right to proceed with the eviction process if this happens
We all know that finding a place to rent takes a lot of time, after finding a place, you will have to take some more time to negotiate the tenant agreement.
Then when that is done, you have to deal with the moving out, which requires you to have some extra funds ready, especially if you are hiring a moving service.
On the other hand, landlords will have to wait for someone to be interested in their property, and when there is an offer, they will have to screen the candidate which can be time-consuming.
After the tenant screening, the landlord and candidate still have to negotiate a tenant agreement.
All in all, lease renewal is better for both, with less effort and less cost. Unless both parties dislike each other, then you have no choice but to find a new place to rent.
How Do You Renew Lease Online?
Unlike doing a lease renewal on your own, through SPEEDHOME, a tenant only needs to pay for the lease renewal, which is priced at a more affordable cost of RM199 + 6% SST as SPEEDSIGN fee.
Now at SPEEDHOME, you will have the option of settling your rent agreement renewal online. That is right, not only can you sign your tenancy agreement but you can also renew your lease online.
SPEEDHOME is always here to ease the process for leasing a property and lease renewal work.