Things Malaysian Property Owners Forget to Include in the Tenancy Agreement

Most of us avoid lawyers! And no wonder. We go blank with legal jargon and are even more adverse to reading long, convoluted legal documents. However, as you become a landlord or when you want to rent out a property, the legal documents come into play, there’s no way to avoid that.

Why do you need the tenancy agreement?

Signing a tenancy agreement is a necessity to set the rights of both parties (ex: between the landlord and the tenant) and obligations. Practically, it makes it easier to avoid unnecessary quarrels, arguments and disputes over who is to pay or what to provide etc.

So, what to look for in an agreement?

First, it’s a must to prepare the agreement in two identical copies – one for each involved side. You’ve got to ensure that both parties read and sign the agreement, and include information on the date and place of its conclusion.

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You have to include these as well:

Tenant’s Obligations – an agreement cannot be formed without stating the rights and obligations of the tenant. Some of the tenant’s rights to note are:

  • to maintain the property in the proper technical, hygienic and sanitary conditions
  • to adhere to house rules and to protect the property from damage
  • to pay the utility bills (electricity, water and gas) based on their usage

Landlord’s Obligations – they’re just as important as the tenant’s obligations. Make sure to think through, what are you practically capable of providing and when. Don’t over-promise! Some  of the landlord’s responsibilities are :

  • to maintain and keep the main structure of his property including the roofs, walls, drains, water pipes and electrical wiring.
  • to resolve any existing and future property tax rates
  • to fulfill any demand requests by tenants: such as fixing broken taps, tiles or walls and pay for the fixing fees.

Personal Data- both parties (tenants & landlords) shall provide their detailed personal information to each other to strengthen the trust among them. To be safer, it’s best if you obtain a photocopy of the tenant’s Identity Card to confirm their identity.

Specification of the amount of rent, security deposit & length of tenancy period- This is the section favored by most of the landlords as you don’t wish your tenants to breach the contract. Specify when the rent is supposed to be paid, and when is it going to become due. State clearly when the termination notice should be given- at least one month before the planned check-out, so you are prepared to accept new tenants.

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Tenancy agreement – checklist

Lastly, we know it’s too troublesome to read everything and forget about it minutes after. To help you remember  it better, here’s a checklist for you to know the basic important criteria needed in a tenancy agreement. Check ’em out below!

  • All parties involved (witness is included if any)
  • Tenant’s and landlord’s right
  • Name, IC (if individual), company number (if company) or address of landlord
  • Name, IC (if individual), company number (if company) or address of tenants
  • Date of Tenancy Agreements
  • Tenancy Period
  • Check-in Date of tenancy
  • Expiry date of tenancy
  • Monthly rental
  • Booking deposit
  • Landlord’s bank account details
  • Security deposit
  • Utilities deposit
  • Access card deposit (if any)

If you’ve already drafted your own tenancy agreement, conduct a second check again with the list above – in case you missed out something!

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Well, it’s true what they say – that there’s quite a lot of work involved to prepare a complete tenancy agreement. However, to make your life easier and better, and of course safer, you can contact us – now offers free tenancy agreement drafting service for the owners registered on the platform!