** Tenant to also add another RM10 for landlord’s copy.

 

 

Rental Deposits

Upon the signing of the Letter of Offer/Acceptance (or Agreement to Rent), the tenant is required to pay one month advance rental (or earnest deposit). The landlord cannot then rent the property to another tenant once the earnest deposit has been received. This is followed by tenant’s payment for security deposit (2 months rental) and utility deposit (1/2 month rental) within 14 days from the date of acceptance. Tenants will also need to pay the above-mentioned stamping duty and legal/admin fees.

 

 

Negotiation of Rental Rate

Rent control in Malaysia was abolished a few years ago and rents can be negotiated freely. There is no specific law that regulates the duties and responsibilities of landlords and tenants, yet there are still basic guidelines for rental agreements which are commonly followed.

 

 

Unfurnished, partially- or fully-furnished?

An unfurnished unit refers to a bare unit – one without any renovation done after the unit was handed  over to the owners by the developers. Extensive renovation is necessary.

 

A partially furnished unit usually comes with fixtures and fittings installed, e.g. kitchen cabinets, lightings, air-conditioning, built-in wardrobes, etc. Rental rate is generally lower than for a fully furnished unit as loose furniture, brown and white goods are not included. This option is perfect for tenants who may already have their own furniture sets.

 

However, some landlords will agree to fully furnish the unit for a revised rental rate. Alternatively, tenants may also want to purchase their own furniture sets or rent them, in which case there are many furniture rental companies available.

 

A fully furnished unit is one that is readily available for immediate tenancy. Property ads may have phrases such as “move-in condition” because tenants will not have to worry about getting most (if not any) items to ensure the unit is in liveable standard from Day 1, and all tenants need to do is to “bring own luggage and laptop”. Living room, dining room and bedroom furniture are already provided, as well as most kitchen appliances and other brown/white goods.

 

 

Reinstatement of the Premises

Most tenancy agreements, unless otherwise stated, requires the tenant to reinstate the premises to the ‘original’ condition prior to tenants’ moving in. Any damage found to the property will usually be paid by the tenant or costs to be deducted from the security deposit before the balance fund is reimbursed to the tenant. The same applies to utility charges (e.g. electricity, water, gas, ASTRO, internet service, etc.), where outstanding sums will be deducted from the utility deposit.

 

Should there be no damages or outstanding sums for utility charges, the security and utility deposits will be returned to the tenant in full. It is therefore (strongly) not advisable for landlords to accept tenants’ request to “off-set” the remaining rental payments in lieu of the paid deposit amount.

 

 

Termination of Rental Contracts

The tenancy, essentially, will require the ‘injured’ party to be compensated for the remainder of the term. However, depending on the landlord and/or the exit clause in the tenancy agreement, the party wishing to terminate has to give 2-3 months’ written notice and/or compensate the ‘injured’ party compensation of 2-3 months rental. This will, in effect, give them ample time to find a new tenant/premises and cover any losses caused by the contract termination.

 

 

Diplomatic/Expat Clause

Expatriates will usually have the ‘diplomatic/expat clause’ stated in the tenancy agreement. This special clause in the contract usually comes into effect if the tenant has to leave the country for various reasons and thus requires an early termination. The tenant has to show evidence of why he has to leave, for instance an employment transfer or dismissal. In most cases this clause can only take effect after the first 12 months of lease. A written notice of two months is required. Effectively, the tenancy is locked in for a total period of 14 rent-payable months.

​

​

Real Estate Agent's Commission

Landlords to bear the Real Estate Agent's Commission, also known as the agency professional fees, as follows:

Up to 1.25 months of the gross rental for up to 3 years tenancy, plus 6% Sales & Service Tax (SST) on the said professional fee upon the signing of the Tenancy Agreement.​ 

For lettings above 3 years, the professional fees are as follows:
- Exceeding 3 years up to 4 years: up to 1.50 months of the gross rental

- Exceeding 4 years up to 5 years: up to 1.75 months of the gross rental

- Exceeding 5 years (without option for renewal): up to 1.75 months of the gross rental

- Exceeding 5 years (with option for renewal): up to 1.75 months gross rental plus 0.25 months rental for every additional year

​

Minimum fee: As above, subject to a minimum fee of 1 month rental

​

For tenancies less than one year, the fee may be calculated on a pro rata basis.

Tenancy Renewals or Rent Reviews: 50% of the professional fees chargeable (as above)

Note: 6% SST shall apply on all above-mentioned professional fees.

Additional Claims:

In addition to the fees stated above, claims may be made for:
(a) the cost of printing, plans, copies of documents, lithography, traveling (only where the distance between the estate agent’s office and the property is more than 40 km) and other expenses actually incurred;
(b) the cost of media advertisements, signboards, brochures and other promotional material.

Note : The above additional claims may not be incurred by the registered estate agent without the prior concurrence of the client.

​

​

​