| A clear tenancy agreement protects both landlord and tenant by recording the commercial terms and allocating responsibility before occupation begins. The following provisions deserve particular attention. 1. Tenancy Duration The agreement should state the commencement and expiry dates and whether the fixed term is one year, two years or another period. It should also explain when possession is delivered and when rent begins. 2. Monthly Rent The exact rental amount, payment method and receiving account should be recorded. The agreement should clarify whether rent includes parking, management charges, furniture or other facilities. 3. Payment Deadline A specific monthly due date prevents uncertainty. Any grace period, late-payment interest or contractual consequence should be clearly stated and reasonable. 4. Deposits Common deposits include a rental or security deposit to cover unpaid rent, damage or other breaches, and a utilities deposit for outstanding electricity, water or similar accounts. The document should identify each amount, permitted deductions and the timeframe for return. Deposits are ordinarily refundable after the tenancy if there is no unpaid sum or damage beyond fair wear and tear. 5. Early Termination The termination clause should specify the circumstances in which either party may end the tenancy before expiry, the written notice required and the effect on deposits or remaining rent. Any diplomatic clause or break option should include objective conditions. 6. Renewal Option An option may allow the tenant to extend the tenancy. It should prescribe the notice period, length of the renewed term and how the new rent will be determined. Renewal terms may permit an increase or require fresh agreement, so tenants should not rely on informal assurances. 7. Subletting The agreement should state whether the tenant may sublet all or part of the premises, operate short-term accommodation or allow another long-term occupier. Most landlords require advance written consent. Unauthorised subletting can constitute a serious breach. 8. Repair and Maintenance Duties Tenants are commonly responsible for routine care, minor items and damage they cause. Landlords generally handle structural or major repairs needed to keep the premises safe and habitable. The agreement should establish a reporting process and address urgent repairs. The parties should conduct a documented handover inspection with photographs and an inventory. The executed tenancy agreement should also be stamped in accordance with Malaysian stamp-duty requirements. This article provides general information only and does not constitute legal advice. |
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Posted by David Chau & Artika on 22 Jul 26
Malaysia