Tenancy agreements, why is it such a bother? Why are there so many copies and thick, bulky papers that weighs at least 4 kilos? And not to mention that other than the fact that it’s so expensive, the words are too small too!
Lo and behold, it just can’t be helped. While you can choose to be penny-wise about it, tenancy agreements are a MUST. Why? Because in Malaysia, there is no Tenancy Act as the practice here is more pro-tenant.
Before we get into specifics, here’s a pro tip: A tenancy agreement is for a rental period of less than three years and is governed by several acts of law, such as The Contracts Act 1950 and Distress Act 1951. A lease is governed by the National Land Code 1965, further stressing on the word “crucial” for tenancy agreements.
Take note, here are a few important things that you MUST know about tenancy agreements:
1. Details that will clearly spell out several things
- Details of the property, address etc
- Security and utility deposits to be paid
- Terms of tenancy
- Monthly rental
- Details of both landlord and tenant
- Tenant’s obligation
- Landlord’s obligation
- Mutual obligation
- Renewal clauses
- How the rent is reviewed
2. Special conditions
Special conditions would be applicable if and only if each party could negotiate terms such as renovations done or tenants to reinstate any demised premises to its original condition if renovation work had been done to the demised premises.
3. Termination of tenancy agreements
Just like a tendering to leave a job, each party wishing to terminate has to give at least 2 to 3 months written notice. For such cases like tenants who have to leave the country, the termination notice comes into effect when they show evidence like an employment dismissal.
4. Where to stamp tenancy agreement
For any agreement or leasing to be legal, it has to get stamped by LHDN (Lembaga Hasil Dalam Negeri) in court and of course, there will be a fee and it varies depending on the period of your agreement. To calculate your rental agreement stamping fee, click here for a free online tenancy agreement calculator
Getting your agreements stamped and fees paid, should be your final step in completing your tenancy agreement.
Sounds like a lot of work? Are you a busy landlord? Don’t worry! SPEEDHOME can do it all for you, no more brainstorming or going through the hassle of formalising an agreement.
With SPEEDHOME, you CAN be pennywise about leasing your property & still have full control over your property. Wondering how? Find out more about SPEEDHOME here!
P.S : VIRTUAL AGREEMENT!
Yes, for the first time in history there is a virtual agreement that both parties can simply sign and wait for all the necessary documents to be filled and stamped for them. How?
With the SPEEDHOME app anything is possible. There is a function to make your life easier called SPEEDMANAGE. It is an online tenancy agreement that is hassle free! They will even send it for stamping !
However this function is applicable if you have signed up to the SPEEDHOME landlord services. So, be a be part of the SPEEDHOME family today! They even have insurance coverage for your property and soo much more!
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