Renting remains the go-to option for most of us today, as sky-high property prices make it close to impossible for us to realise our dreams of owning a home. However, renting a home is not just about paying for a space to live in for a stipulated amount of time – there is actually a whole lot more to it.
And if you are planning to rent or are already renting a home, you should take the extra effort to be well-informed in order to protect yourself and avoid facing any untoward incidents or problems in the future. Read below to know about your rights and your responsibilities as a rental home tenant!
YOUR RIGHTS AS A TENANT
The Tenancy Agreement
There is no specific statutory law in Malaysia governing the relationship between a landlord and a tenant but there are certain provisions in the National Land Code 2020, Distress Act 1951, Specific Relief Act 1950 and Contract Act 1950 that provide for certain remedies and procedures in relation to tenancy.
Generally, the relationship between landlord and tenant can be defined and laid out in a formal tenancy agreement.
With that being said, it is imperative that you, as the tenant, scrutinise and double-check every detail in the tenancy agreement before you agree to move into the home. Getting a lawyer to advise on the terms and conditions of a tenancy agreement in this area would be utmost helpful. Here are some things you should look out for:
- The monthly rental amount and set payment date
- Payment method
- Security deposit amount (usually 2 months’ rental)
- Utility fee deposit amount (usually half a month’s rental)
- Terms and conditions of the security deposit and its release
- Start and end date of the tenancy
- Details of both the tenant and the landlord
- Maintenance of roofing, piping, wiring, walls and other structures in the rental home by the landlord
- Other special conditions and requirements by the landlord (IMPORTANT!)
- Renewal of contract at the end of the tenancy (and whether you will be prioritised)
- Terms and conditions around changes to the rental amount, which includes:
- The time when the landlord can increase the rent (whether it is during the tenancy period or after the renewal of the contract)
- How much can the landlord increase the rent by
- Penalties for late payments
- Cost of repairs and who it should be attributed to
- Option to renew – clause to extend your rental for another term after ending the first term
- Refund of deposits
- Tenant’s rights to peaceful enjoyment of the premises
General Tenant Rights
Also, below are the rights you as a tenant are entitled to (unless specified otherwise):
- Viewing the property before deciding to rent
- Knowing who is your landlord
- Living peacefully at the rental home without any intrusion or interference
- Being able to see the utility bills that you are paying for
- Living in a rental home that it is structurally safe and in a good state of repair
- The right to live in the home during the agreed tenancy period
- Getting back the security deposit when the tenancy period ends as per the tenancy agreement
Note: You should also be sure to do a thorough check on the home before signing the tenancy agreement, as the landlord can refuse to repair damages in the home on the basis that you have signed the contract stating that you have checked the home and found it in good condition.
Usually the landlord will be responsible to maintain and upkeep the exterior part of the premises and the tenant will be responsible for the interior part of the premises and the fixtures and fittings.
Common Questions Related to Tenant Rights
Can the landlord increase my rental amount?
Yes, the landlord can – provided that it is included in the tenancy agreement that you signed. So make sure you read and understand the terms in the tenancy agreement.
Can the landlord kick me out and end the tenancy agreement before the end of the tenancy period?
No, unless there is a clause in the tenancy agreement that allows for early termination. Even if there are valid reasons like defaulting on rent, damages caused by the tenant or breach in the tenancy agreement, the landlord has no right to kick you out of the property (or even change the locks!) without first initiating a legal action in court and obtaining a court order.
There are certain legal procedures that need to be followed when it comes to eviction, and Malaysia is pretty pro-tenant in practice. The landlord must first issue a notice to inform the tenant of the breaches of the tenancy agreement. If the tenant still refuses to comply, then the landlord may serve the tenant an eviction notice (notice to quit) and initiating a legal action in court.
If you refused to vacate and redeliver vacant possession of the premises after being served notice of quit, the landlord is entitled to impose doble rental on you from the date of you refunding to redeliver vacant possession until the date of you redelivering the vacant possession to the landlord.
What if defaulted in payment of rental?
If you breach the terms of the tenancy beside the landlord’s right to terminate the tenancy and issue notice to quit as highlighted above, the landlord may opt not to terminate but instead initiate an action for recovery of rental under the Distress Act 1950.
Under this law, the landlord may apply and obtain a court order (by ex parte) (ex parte means unilateral application by 1 party) for a distress order that carry grave consequences.
When this application is made, the tenant will not be notified of a pending court action and the landlord can obtain a court order in your absence.
Under distress order, the court baillif will be empowered to enter the premises to attach your belongings and you will be given the opportunity of 14 days to pay up the rental. If you fail to pay the rental a public auction will be held to auction off your belongings.
Be advised not to ignore notice asking you to pay rental and more importantly pay your rental on time.
Can I end the tenancy agreement before the agreed end date?
Depending on the terms agreed in the tenancy agreement, sometime the term provides that if you terminate earlier your security deposit can be forfeited and there is a possibility that legal action may be taken against you. In some instances, you may be required to pay for all the rent due for the remainder unexpired term of the tenancy.
The only way you can end the tenancy agreement early without any consequence or penalty is if: The landlord breaches the tenancy agreement.
The real estate agent advised me to sign the tenancy agreement prepared by the agent and I don’t need to engage lawyer. Should I engage lawyer?
It is imperative to understand that the agent will be paid commission by the landlord and naturally the agent represent the landlord. Unless you are familiar and capable of understanding the terms in the tenancy agreement yourself, otherwise you should engage a lawyer to advise you.
Do I have to pay stamp duty and landlord’s lawyer fee ?
Yes, you are required to pay the ad valorem stamp duty on the tenancy agreement. Each party should bear their own lawyers’ fee. However, you may always discuss with the landlord on the arrangement on payment of stamp duty and the lawyers’ fee. Quite often the charges are shared between the parties.
YOUR RESPONSIBILITIES AS A TENANT
Sure, renting a home is easier and less burdensome compared to the financial burden and responsibility that comes with owning a home – but that does not mean that you are free from any form of responsibility. Stated below are some of your duties and responsibilities as a tenant of the rented home:
- Paying the rent on time
- Paying all bills (as agreed with the landlord), such as electricity and water bills
- Keeping the home, its fittings, fixtures, furniture and appliances in fair condition during your stay (with the exception of wear and tear)
- Keeping the home clean
- Informing the landlord of structural problems and damages in the home that require repair, as well as damaged appliances
- Repairing or replacing any damage to the fittings and fixtures caused by you
- Allowing landlord entry into the home to inspect or repair damages
- Not subletting the home (unless if given permission by the landlord)
- Not renovating or making major changes to the property (unless if given permission by the landlord)
- Not using the home for business purposes without permission from the landlord
- Not using the home for illegal purposes
- Allowing the landlord to bring people to view the property when nearing the end of the tenancy
- Observing property management rules (if applicable)
- Being a good and considerate neighbour not to cause nuisance
And that sums up the basics that you should know about your rights and responsibilities as a tenant!
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The statement and information in the articles are the opinion of the writer and meant only as a guide. Any property purchase, rental or lease involve many legal issues and other complication depending on the individual facts and circumstances. Readers and Users are strongly advised to seek professional advise including from qualified and competent lawyers, bankers and/or real estate agent to verify the information and the statement before embarking on any purchase, rent or lease of any property. To the fullest extent permitted by law, we exclude and disclaim liability for any losses and damages of whatever nature and howsoever cause and arising including without limitation, any direct, indirect, general, special, punitive, incidental or consequential.
