The Five Landlords Need to Know

Landlords don't just collect rent checks. Successful landlords must understand the law, negotiate different personalities, and adapt to various problems that can pop up at any time. Here are five things potential landlord should consider, before taking the plunge.

First and foremost there is no specific legal regulation lease in Malaysia

And Yes, you are not mistaken. Malaysia does not have a lease law or a specific decree that can bind tenants. However, tenants and landlords or owners can still protect each other's rights through leases.

Before talking about a so-called lease, you must first clearly distinguish the difference between the tenant contract and the lease contract. The tenancy contract generally has a lease of no more than three years and the lease contract is more than three years.

Tenant contracts are governed by the 1950 Contracts Act, the 1950 Specific Relief Act, and the 1951 Immovable Property Seizure Act, which is governed by the 1965 National Land Act.

Secondly, don't underestimate a contract.

As there is only contractual protection between tenants and homeowners, many people will wonder whether there are any so-called "standard contracts". In fact, unlike the format of the sale and purchase agreement as stipulated in the Housing Development (Control and Licensing) Act of 1966, there is no similar statutory standard tenancy format in the local area.

However, under the control of the contract law, the tenancy agreement signed between the tenant and the homeowner is based on mutual agreement and therefore has a legal effect.

Despite this, many people did not read the terms and conditions carefully before signing the document.

It is worth noting that if there is something unacceptable or unreasonable in the contract, you can discuss with the other party and find a solution that both parties agree on.

Some leases include items:

  1. Lease term and renewal contract option

  2. Deposit and rent

  3. Consumption tax (if any)

  4. Payment model

  5. Landlord and tenant information

  6. Renting purpose

  7. Responsibility of both parties

  8. Lease effective date, rent adjustment and adjustment date

  9. Property internal item details

  10. Special circumstances (if any)

Thirdly, Commercial leases are actually more complicated than residential leases

Commercial property leases are more complicated than residential properties because they involve more matters, such as tenants' responsibilities, especially in decorating matters, business licenses, and other design business expenses, including, of course, excise taxes.

Fourthly, Landlord: Two laws and regulations

In the event of a dispute between the tenant and the landlord, such as the tenant's refusal to pay, move or overdue, the landlord is actually a weaker party. Under this circumstance, the landlord can only follow two major laws and protect his rights and interests.

The Immigration Detention Act of 1951

  • The landlord can apply to the court to recover rents for up to 12 months from tenants who are in arrears.

The expulsion order under the Specific Relief Act of 1950

  • The landlord can apply to the court for a court order to recover the house.

Lastly which is the 5th is self-help plan

Whenever a dispute arises, the landlord often thinks that it is legal to change locks, water or power, or even forcibly enter the house, but these actions are illegal. In the event of a dispute, the landlord should not be in a mess. Please follow the self-help steps below to protect your rights through legal channels.

  1. Lodge a police report

  2. Break the lock in the presence of a police officer

  3. Take as many photos of the interior to protect yourself in case the tenant claims loss of property

  4. Place a notice on the front of the property informing the tenant that you have made a police report

  5. Place a photocopy of the police report together with the notice.

This is the final plan that we have to choose as a last resort. I would like to remind you that before renting or renting a house, you must read the contents of the lease contract carefully to ensure that your rights are protected.

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