Early Termination

9 Early Termination Checklist

▢ Tenant and Landlord must notify/involve SPEEDHOME in all communication regarding termination arrangement

▢ Tenant to confirm the day and time of surrendering the keys and vacate the property

▢ Tenant to provide at least 10 interior photos of the property for checking the house condition

▢ Tenant to clean the house or pay RM400 to the landlord for engaging a cleaning service

▢ Tenant to keep a set of interior photos which to be taken on the day of handover

▢ Tenant to pay the penalty fee to Landlord which amounted to 50% of one month rent if the shortened tenancy period is within the first half of the original tenancy period; OR

▢ Tenant to pay the penalty fee to Landlord which amounted to 25% of one month rent if the shortened tenancy period is beyond the first half of the original tenancy period.

▢ Tenant to provide the date of full settlement for penalty fee.

▢ Tenant to pay the upfront electricity bill for the last month based on an average of last 3-months usage

▢ Landlord to confirm the date and time of site inspection with Tenant to check the house condition

▢ Tenant and Landlord to agree on the settlement of damage or compensation / Landlord to acknowledge that there’s no damage in the house


*** If tenant do not honour utility payment / fix damages/ cleaning, Landlord can proceed insurance claims at http://claims.speedhome.com/

FAQ

How can the Tenant terminate the current tenancy?

According to the digital tenancy agreement, tenant only can end the contract legally by either of the following 4 options:

  1. Complete all 12-months rental payment.
  2. Tenant serve 2-months early notice and pay the penalty fee.
  3. The Landlord agreed to waive the early termination notice clause from 2-months notice to 1-month notice or totally without notice. Landlord and Tenant should both agree to proceed any of the above 4 options and notify SPEEDHOME about the finalized option of terminating the contract legally.

What should Tenant do if Tenant wishes to early terminate the tenancy?

The tenant has to immediately Email to both SPEEDHOME ([email protected]) and Landlord to serve the two (2) months early termination notice with the following content in the email:

  • Tenant’s full name as per tenancy agreement
  • Latest mobile number
  • Date of surrendering the keys
  • Reason for early termination

Can Tenant serve one (1) month termination notice instead of two (2) months?

No. The two (2) months notice is needed for both parties to prepare unless Landlord agrees to waive the notice for a shorter notice period.

If Tenant still would like to terminate the contract immediately by ignoring the two (2) months notice, are there any consequences?

If Landlord does not agree to waive the notice for the tenant, Landlord will need to lodge a police report against Tenant for breaching the contract and Tenant will be blacklisted with the credit reporting agency due to default payment.

The two (2) months cycle should follow the due date or follow the notice date?

It will follow the notice date and the rental payment will be prorated. Please be clarified that early termination notice as in the agreement is 2 months’ prior notice, in our way if interpreted and administered, it is on a 2-months month cycle from the day of termination. Kindly refer the following illustration:


Example AExample BExample C
Rent Due1st day monthly1st day monthly1st day monthly
RentRM1,000.00RM1,000.00RM1,000.00
Date of Notice to either SPEEDHOME or Landlord5 March 202029 February 202016 September 2020
Termination / Handover Date4 May 202028 April 202015 November 2020
Prorate Calculation1 – 31 March: RM1000
1- 30 April: RM1000
1 – 4 May: RM1000 * 4 / 30 days =  RM133.33, then round down to nearest whole number = RM133.00
1 – 31 March: RM1000
1- 28 April: RM1000 * 28 / 30 days =  RM933.33, then rounding to nearest whole number = RM933.00
1 – 30 September: RM1000
1- 30 October: RM1000
1 – 15 November: RM1000 * 15 / 30days =  RM500.00
Early Termination Penalty Calculation50% penalty as within the first half of the period.
RM1000 * 50% = RM500
50% penalty as within the first half of the period.
RM1000 * 50% = RM500
25% penalty as beyond the first half of the period.
RM1000 * 25% = RM250

If Landlord notices there are damages to the house after Tenant surrender keys and Tenant does not respond to fix the damages, can the landlord claim insurance?

Yes, the Landlord can submit insurance claims within 7 days after Tenant surrenders the keys. Landlords should refer to the claims process at http://claims.speedhome.com/. Tenants will be blacklisted for defaulting repair payment.

What if the Tenant did not surrender the keys and access cards to the landlord after moving out?

Not returning keys and access cards are considered an act of theft which can be charged under criminal court. Landlords are encouraged to lodge a police report immediately if keys or access cards are not returned immediately upon request. If there’s any break-in or theft case happening in the house, all occupants will be listed as suspects for the police officer to investigate as the occupants maintain the access of the property.

What if Tenant did not clean the house or left some belongings after moving out?

Landlords can proceed for the insurance claim of cleaning fees against Tenant while Tenant will receive a police report lodged against them and Tenant will be blacklisted with credit reporting agencies. Landlords reserve the right to remove all of the tenant’s belongings after 7-days of the tenant moved out.

For more clarification, please reach out to SPEEDHOME at [email protected]

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