| Malaysia does not use one mandatory standard tenancy form for every residential or commercial letting. The landlord and tenant may negotiate lawful terms, but a clear written agreement is essential for rent, deposits, repairs, use, termination and possession. Professional fees and stamp duty should be calculated under the current Solicitors’ Remuneration Order and Stamp Act rather than an old online table. Documents and due diligence Provide the title or ownership record, property address, latest assessment information and identity or company documents. Verify that the landlord owns the property or is authorised to let it. For strata property, review management rules, access cards, parking and outstanding charges. Corporate parties should sign through authorised persons. Commercial terms State the monthly rent, payment date and method, rental period, commencement, option to renew, rent review and any rent-free fitting-out period. Identify the earnest, security, utility and renovation deposits and the conditions for refund or deduction. Clarify service tax or other tax treatment where applicable. Use, repairs and condition Describe the permitted use and prohibit unlawful activity or unauthorised subletting. Attach an inventory and dated condition photographs. Allocate responsibility for structural repair, routine maintenance, appliances, utilities, management charges, quit rent and assessment. Define ordinary wear and tear and require prompt notice of damage. Stamp duty and legal fees A tenancy should be stamped within the statutory period so it can be readily relied upon in proceedings, subject to payment of any penalty for late stamping. Duty is calculated according to the Stamp Act and term using current rates and exemptions. The source article’s older RM250-band table and fee scales may no longer reflect current law. There is no universal rule requiring landlord or tenant to bear drafting fees; the parties should agree. Whoever appoints the lawyer is the lawyer’s client unless otherwise arranged, and shared payment does not automatically create joint representation. Late or unpaid rent The landlord should send a written demand and follow the contractual default and termination provisions. Possible remedies include a civil claim for arrears, distress under the Distress Act 1951 for eligible rent through a court bailiff, and possession proceedings. Distress permits seizure of qualifying goods but is not an eviction order. The landlord should not change locks, remove belongings or cut utilities to force a tenant out. Even a defaulting tenant remains entitled to lawful process. An eviction or possession order can be enforced by the bailiff. Early termination The agreement should state notice periods, break clauses and consequences of early exit. A landlord may be entitled to apply deposits and claim proven loss, but automatic forfeiture is subject to the contract and legal principles governing damages and penalties. The landlord should mitigate loss, for example by reasonably seeking a replacement tenant. If the landlord terminates without contractual basis, the tenant may recover deposits and claim loss caused by breach. Notices must use the address and service method stated in the agreement. Damage and deposit deductions At the end of the term, conduct a joint inspection and record meter readings and keys. The landlord may deduct documented sums for tenant-caused damage, arrears and agreed charges, but not improvement or normal deterioration. Provide an itemised statement and supporting invoices and return the balance within the agreed time. Landlord access The tenant has the right to quiet enjoyment. The landlord should enter only according to an express inspection, repair or viewing clause and with reasonable notice, except in a genuine emergency. Ownership alone does not permit unrestricted entry during the tenancy. Renewal An option to renew should specify the notice date, new rent mechanism and conditions, such as absence of unremedied breach. If no binding option exists, renewal requires a new agreement. Any extension should be documented and stamped as required. A tenancy agreement works best when it anticipates problems before keys are handed over. Clear drafting, a condition record, prompt stamping and lawful enforcement protect both sides. |
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Posted by David Chau & Artika on 25 Jul 26
Malaysia