Tenancy Agreement in Malaysia
Q: How do I calculate the legal fee for tenancy agreement?
The standard legal fees chargeable for tenancy agreement are as follows:-
First RM 10,000 rental – 25% of the monthly rent
Next RM 90000 rental– 20% of the monthly rent
More than RM 100,000 – negotiable
Legal Fee for Tenancy Agreement period of above 3 years:
First RM 10,000 rental – 50% of the monthly rent
Next RM 90000 rental– 20% of the monthly rent
More than RM 100,000 – negotiable
Q: How do I calculate the stamp duty payable for the tenancy agreement?
The standard stamp duty chargeable for tenancy agreement are as follows:-
Rental for every RM 250 in excess of RM 2400 rental
Less than 1 year: RM 1
Between 1-3 years: RM 2
More than 3 years: RM 3
Annual rental below RM 2400 – no stamp duty
For quicker and easier calculation, please refer to EASYLAW APP
Q: What are the documentation required for tenancy agreement?
- The title and details of the property;
- Assessment receipt of the property; and
- A copy of IC of tenant and landlord.
Q: What kind of information should I include in the tenancy agreement?
There is no standard form of tenancy agreement. The landlord and tenant are free to include any terms into the tenancy agreement as long as it is legal and has been agreed upon by both parties.
However, the landlord would need to provide information such as the amount of the rental and rental deposit, the total rental period, whether it is subject to any renewal, whether there is any utilities deposit required and increment etc.
Q: What should I do if my tenant has failed to pay the rental in time/ default in paying the rental to me?
The Landlord could bring a legal action under the tenancy agreement to recover the rental. More often than not, the tenancy agreement would include termination clauses and the landlord would be allowed to forfeit the deposit. The landlord would also be entitled to seek for other legal actions such as distress proceeding, eviction proceeding or obtain a judgment debt order to recover the rental in arrears from the tenant.
Q: What should I do if I want to terminate my tenancy agreement?
The party who wishes to terminate the tenancy agreement may terminate the agreement by giving a formal notice to the other party indicating his intention to do so.
Q: What compensation I can get if the tenant terminate my tenancy agreement without notice?
Subject to any other terms contained in the tenancy agreement, the landlord would be entitled to forfeit the rental deposit of the tenant as a form of compensation for the early termination without notice.
Q: What compensation I can get if the landlord terminate the tenancy agreement without notice?
Subject to the terms in the tenancy agreement, the tenant would be entitled to get the rental deposit back from the landlord and may be entitled to bring an action against the landlord for breach of contract.
Q: What should I do if the tenant has damaged the furniture/fixtures of my property?
Subject to the terms in the tenancy agreement, the landlord may be entitled to seek for compensation from the tenant to fix the damaged furniture/fixtures.
Q: Can I enter the premises without the tenant’s permission?
No unless otherwise stated in the tenancy agreement. If it is not specifically stated in the tenancy agreement, the landlord would be considered as trespassing the property without the tenant’s prior permission.
Q: In the event of default of payment of rental, what kind of legal action can I take against the tenant to recover my loss?
There are several legal actions one may pursue:-
- A judgment debt order
- A distress order to send the court bailiff to seize and sell the tenant’s goods in satisfaction of the arrears under the Distress Act 1951.
- An eviction order to evict the tenant from the subject property
Q: Can I chase the tenant out in the event that the tenant has defaulted in the payment of rental?
No. Unless an eviction order has been obtained to chase the tenant out from the property under the assistance of bailiffs and police officer.
Q: Can I renew the tenancy agreement or should I make a new tenancy agreement if I want to renew my tenancy?
Subject to the renewal clauses in the tenancy agreement, the landlord or tenant may choose to renew the tenancy under the same terms and conditions.
Q: Who should bear the legal costs for the preparation of the tenancy agreement?
There is no fixed law on whether the tenant or the landlord should bear the legal costs of the tenancy agreement. However, it is a common practice for the legal costs to be shared equally among both parties.