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Investment Tenancy Agreement, Need some advice here

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TSmudz
post Dec 28 2012, 07:50 PM, updated 13y ago

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Hi guys,

I have a few questions in mind regarding tenancy agreement in Malaysia.

From what I read, the steps to make a legal tenancy agreement is to have signature from both parties then stamp it in LHDN. I would like to know how true is this.

Other than this, I'm also having another problem which is the tenant decides to stop renting the unit after 4 months. This is a bad thing for me as I've spent a few thousands renovating the unit and also paid 1 month commission for the agent. Is there anyway to add in a clause which requires the tenant to rent at least a minimum 6 months?

Lastly, which kind of format would be used for a legal agreement? Can this be used? Tenancy Agreement

Thanks in advance.

This post has been edited by mudz: Dec 28 2012, 08:02 PM
AVFAN
post Dec 28 2012, 08:00 PM

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QUOTE(mudz @ Dec 28 2012, 07:50 PM)
Hi guys,

I have a few questions in mind regarding tenancy agreement in Malaysia.

From what I read, the steps to make a legal tenancy agreement is to have signature from both parties then stamp it in LHDN. I would like to know how true is this.

Other than this, I'm also having another problem which is the tenant decides to stop renting the unit after 4 months. This is a bad thing for me as I've spent a few thousands renovating the unit and also paid 1 month commission for the agent. Is there anyway to add in a clause which requires the tenant to rent at least a minimum 6 months?

Thanks in advance.
*
better get a proper tenancy agreement signed and stamped. w/o one, in the case tenant cabut after 4 months, nothing u can do except scold the agent and agent probably just laugh.

a typical tenancy agreement is 1yr firm + 1yr renewable option. which means tenant cannot terminate before 12 months; must pay all even if he leaves early. if he wants to renew for 12 months after 1st 12 months, a letter to confirm will do, no need for agent commission or stamping anymore.

a diplomatic cause is common - if tenant is expat and sent away fron country, the agreement is terminated whenever he leaves, no penalty.

having said that, any agreement can be customised to suit both parties, no hard mandatory rules, really.

This post has been edited by AVFAN: Dec 28 2012, 08:02 PM
jucl
post Dec 28 2012, 08:34 PM

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QUOTE(AVFAN @ Dec 28 2012, 08:00 PM)
better get a proper tenancy agreement signed and stamped. w/o one, in the case tenant cabut after 4 months, nothing u can do except scold the agent and agent probably just laugh.

a typical tenancy agreement is 1yr firm + 1yr renewable option. which means tenant cannot terminate before 12 months; must pay all even if he leaves early. if he wants to renew for 12 months after 1st 12 months, a letter to confirm will do, no need for agent commission or stamping anymore.

a diplomatic cause is common - if tenant is expat and sent away fron country, the agreement is terminated whenever he leaves, no penalty.

having said that, any agreement can be customised to suit both parties, no hard mandatory rules, really.
*
Bro, do you have a proper tenancy agreement. Can you share the template or a sample of the agreement.
Many thanks.
SUSZ1000
post Dec 28 2012, 08:37 PM

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QUOTE(mudz @ Dec 28 2012, 07:50 PM)
Hi guys,

I have a few questions in mind regarding tenancy agreement in Malaysia.

From what I read, the steps to make a legal tenancy agreement is to have signature from both parties then stamp it in LHDN. I would like to know how true is this.

Other than this, I'm also having another problem which is the tenant decides to stop renting the unit after 4 months. This is a bad thing for me as I've spent a few thousands renovating the unit and also paid 1 month commission for the agent. Is there anyway to add in a clause which requires the tenant to rent at least a minimum 6 months?

Lastly, which kind of format would be used for a legal agreement? Can this be used? Tenancy Agreement

Thanks in advance.
*
tenancy agreement already stated duration 1, 2 yr or more. You can forfeit the deposit if tenant stay only 4 months. Tis is usually the terms for the agreement. The problem is enforcement.
Are you going to enforce? Police will not enforce tis between you and him only.

Once you tell him about loss deposit he will usually choose not to pay you rent until he finishes his deposit. Question is how are you going to remove him without him finishing his 2 month deposit by staying until 2 month deposit is untilize.

So are you brave enough to open up a can of whoop ass?
AVFAN
post Dec 28 2012, 09:19 PM

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QUOTE(jucl @ Dec 28 2012, 08:34 PM)
Bro, do you have a proper tenancy agreement. Can you share the template or a sample of the agreement.
Many thanks.
*
really sorry that i dont have a ready one to share here but any agent would have it.
BeastB
post Dec 28 2012, 09:26 PM

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QUOTE(jucl @ Dec 28 2012, 08:34 PM)
Bro, do you have a proper tenancy agreement. Can you share the template or a sample of the agreement.
Many thanks.
*
If you simply google it, you'll get a sample in 2 seconds.
chingfui
post Dec 28 2012, 10:58 PM

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QUOTE(BeastB @ Dec 28 2012, 09:26 PM)
If you simply google it, you'll get a sample in 2 seconds.
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Haha, I did that too, but i modify myself also.
eecmlib
post Dec 28 2012, 11:27 PM

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QUOTE(chingfui @ Dec 28 2012, 10:58 PM)
Haha, I did that too, but i modify myself also.
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2 year tenancy
if break within 1 year compensate 12 months rental
jucl
post Dec 28 2012, 11:31 PM

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QUOTE(BeastB @ Dec 28 2012, 09:26 PM)
If you simply google it, you'll get a sample in 2 seconds.
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Thanks. Will do it!
ruben7389
post Dec 29 2012, 02:07 AM

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if tenancy is renewed, do we need to draw up new tenancy and sign and stamp or just a one page letter with a rm10 stamp?
BeastB
post Dec 29 2012, 02:37 AM

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QUOTE(ruben7389 @ Dec 29 2012, 02:07 AM)
if tenancy is renewed, do we need to draw up new tenancy and sign and stamp or just a one page letter with a rm10 stamp?
*
Preferably new tenancy agreement. Unless your old one had a clause "Renewed automatically with same terms and conditions" but you will still need to re stamp if you want to declare.
eecmlib
post Dec 29 2012, 09:43 AM

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QUOTE(BeastB @ Dec 29 2012, 02:37 AM)
Preferably new tenancy agreement. Unless your old one had a clause "Renewed automatically with same terms and conditions" but you will still need to re stamp if you want to declare.
*
"Renewed automatically with same terms and conditions" add this clause only if you monitor all your tenants closely and they are good tenants.
Example==> tadika /day care/ cooperate client

Usually I will go for 2 year tenancy for female client such as nurse...
5 years tenancy for tadika
No 1 year tenancy so far.
AVFAN
post Dec 29 2012, 09:59 AM

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QUOTE(eecmlib @ Dec 29 2012, 09:43 AM)
Usually I will go for 2 year tenancy for female client such as nurse...
           5 years tenancy for tadika
No 1 year tenancy so far.
*
quite right... for residential, it was commonly 2yr+1yr or 2+2.
but due to many available houses and highrise now for rental, many tenants start to insist on 1+1.
in my experience, most of them get out after 1 yr because they find a better one nearby with same or slight rental incr.
this says the yield for rental props is flat or getting lower as there is ample supply for rental.
there are many cases where a good rental is achieved for 1 yr, then stays empty for 1yr before next tenant comes in.
this is happening in many places. when situation will reverse, nobody knows.

for commerical operations, it is usually longer, maybe 3+1, 3+2, or in the case of banks in shoplots, 3+3+3, total 9 yrs with a provision for a capped rental incr every 3 yrs.
again as previously mentioned, there are no hard and fast rules. both sides need to agree, according to prevailing and anticipated future market conditions.

This post has been edited by AVFAN: Dec 29 2012, 10:01 AM
eecmlib
post Dec 29 2012, 10:51 AM

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QUOTE(AVFAN @ Dec 29 2012, 09:59 AM)
quite right... for residential, it was commonly 2yr+1yr or 2+2.
but due to many available houses and highrise now for rental, many tenants start to insist on 1+1.
in my experience, most of them get out after 1 yr because they find a better one nearby with same or slight rental incr.
this says the yield for rental props is flat or getting lower as there is ample supply for rental.
there are many cases where a good rental is achieved for 1 yr, then stays empty for 1yr before next tenant comes in.
this is happening in many places. when situation will reverse, nobody knows.

for commerical operations, it is usually longer, maybe 3+1, 3+2, or in the case of banks in shoplots, 3+3+3, total 9 yrs with a provision for a capped rental incr every 3 yrs.
again as previously mentioned, there are no hard and fast rules. both sides need to agree, according to prevailing and anticipated future market conditions.
*
to safeguard and lock tenant while you property in their top choice, U have to go for 2 years and select your tenant wisely no rush.
Add value your property to find for good tenant
This is How I help my client rent out 53 properties in same way.
BeastB
post Dec 29 2012, 07:57 PM

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QUOTE(eecmlib @ Dec 29 2012, 10:51 AM)
to safeguard and lock tenant while you property in their top choice, U have to go for 2 years and select your tenant wisely no rush.
Add value your property to find for good tenant
This is How I help my client rent out 53 properties in same way.
*
Are you an agent? If so, I might need your service around summer next year. smile.gif
eecmlib
post Dec 29 2012, 08:09 PM

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QUOTE(BeastB @ Dec 29 2012, 07:57 PM)
Are you an agent? If so, I might need your service around summer next year.  smile.gif
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both
Realtor : Certified International Property Specialist, US && member of NAR, US && MIEA
Buyer : Accumulate property as money making machine
kiasfansuri
post Jun 3 2013, 11:17 AM

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Guys - i got a questions!

my Tenant A had to be transferred and his colleague, Tenant B who is replacing him would like to take over my unit. Currently the tenancy agreement is under Tenant A.

What's the best method to handle this? do i come out with another Tenancy agreement under Tenant B?

many thanks sifus!
catsyloo
post Dec 24 2013, 07:58 PM

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QUOTE(AVFAN @ Dec 28 2012, 08:00 PM)
better get a proper tenancy agreement signed and stamped. w/o one, in the case tenant cabut after 4 months, nothing u can do except scold the agent and agent probably just laugh.

a typical tenancy agreement is 1yr firm + 1yr renewable option. which means tenant cannot terminate before 12 months; must pay all even if he leaves early. if he wants to renew for 12 months after 1st 12 months, a letter to confirm will do, no need for agent commission or stamping anymore.

a diplomatic cause is common - if tenant is expat and sent away fron country, the agreement is terminated whenever he leaves, no penalty.

having said that, any agreement can be customised to suit both parties, no hard mandatory rules, really.
*
Hi there. U said a letter of confirm will do if the renewable option is in the original agreement. What kind of letter of confirm? And must it be stamped? How is the procedure like? Please advice.
adam1190
post May 22 2016, 10:59 PM

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Hi guys, my tenancy agreement is 1yr firm + 1yr renewable option. If my tenant wants to renew for 12 months after 1st 12 months, what should I do? Do I need to go for stamping or anything else?

Thanks a lot=)
cold_heart
post Apr 10 2018, 11:57 AM

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Hi, it's anyone having a template of tenancy agreement renewal ?
JustNobody
post Apr 10 2018, 01:58 PM

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QUOTE(jianwei90 @ May 22 2016, 10:59 PM)
Hi guys, my tenancy agreement is 1yr firm + 1yr renewable option. If my tenant wants to renew for 12 months after 1st 12 months, what should I do? Do I need to go for stamping or anything else?

Thanks a lot=)
*
Yes, you need to redo the agreement and get it stamped.
MJ29
post Apr 10 2018, 05:49 PM

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sifu's...

which is a better option for residential property rentals...TA 1 +1 period or 2 years straight .....if 1 + 1 the landlord may be able to raise the rental on the second year, rite?.....what about if the TA is 2 years straight ,....can the landlord increase rental after the first year, say on the 13th month?

Whats the pro and con about ..between 1 + 1 and 2 years straight TA for residential....

Also if opt for 1 + 1 TA, upon expiry of the first year, is renewal (redo) of complete TA required or only one page something like supplementary page will do..

Pls share...
zsnipes
post Mar 26 2019, 12:05 AM

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To Signed first, then Stamping?
Or To Stamped first, then Signed?
BEANCOUNTER
post Mar 26 2019, 12:09 AM

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QUOTE(zsnipes @ Mar 26 2019, 12:05 AM)
To Signed first, then Stamping?
Or To Stamped first, then Signed?
*
Signed by both parties then stamping.
Each party keep one copy.
One copy lefr w stamping office
Hisham8686
post Mar 26 2019, 12:21 AM

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QUOTE(MJ29 @ Apr 10 2018, 05:49 PM)
sifu's...

which is a better option for residential property rentals...TA 1 +1 period or 2 years straight .....if 1 + 1 the landlord may be able to raise the rental on the second year, rite?.....what about if the TA is 2 years straight ,....can the landlord increase rental after the first year, say on the 13th month?

Whats the pro and con about ..between 1 + 1 and 2 years straight TA for residential....

Also if opt for 1 + 1 TA, upon expiry of the first year, is renewal (redo) of complete TA required or only one page something like supplementary page will do..

Pls share...
*
If the Tenancy Agreement is two years straight, the stamping fees is higher than a one plus one Tenancy Agreement.

As for a one plus one agreement, usually the tenant has to give an advanced notice of two months (usually) to the landlord expressing the tenant's intention of extending the tenancy. The notice may be writing or verbal notice, subject to the wording of the tenancy agreement. If it's a written notice, then a simple letter or even a Whatsapp msg would suffice, unless there are major revision of the original terms within the tenancy agreement.

Whether the landlord can raise the rental in a one plus one tenancy agreement is subject to the wording of the original tenancy agreement, the same applies in a two years tenancy agreement.

This post has been edited by Hisham8686: Mar 26 2019, 12:23 AM
drbone
post Dec 10 2019, 07:00 AM

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QUOTE(Hisham8686 @ Mar 26 2019, 12:21 AM)
If the Tenancy Agreement is two years straight, the stamping fees is higher than a one plus one Tenancy Agreement.

As for a one plus one agreement, usually the tenant has to give an advanced notice of two months (usually) to the landlord expressing the tenant's intention of extending the tenancy. The notice may be writing or verbal notice, subject to the wording of the tenancy agreement. If it's a written notice, then a simple letter or even a Whatsapp msg would suffice, unless there are major revision of the original terms within the tenancy agreement.

Whether the landlord can raise the rental in a one plus one tenancy agreement is subject to the wording of the original tenancy agreement, the same applies in a two years tenancy agreement.
*
What if it’s a firm 2 year tenancy agreement and tenant gives notice to move out , say , after 1.5 years ? And she gives written notice 2 months ahead. Would you refuse to return her deposit and demand that she pays for the coming 2 months?

This post has been edited by drbone: Dec 10 2019, 07:01 AM
Hisham8686
post Dec 10 2019, 10:57 PM

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QUOTE(drbone @ Dec 10 2019, 07:00 AM)
What if it’s a firm 2 year tenancy agreement and tenant gives notice to move out , say , after 1.5 years ? And she gives written notice 2 months ahead. Would you refuse to return her deposit and demand that she pays for the coming 2 months?
*
You may need to refer to the tenancy agreement, if there’s an early termination clause specifying any remedy to the landlord, that clause will prevail, otherwise the only remedy of the Landlord would be the forfeiture of the two months rental deposit for any determination of a tenancy agreement before the end of term.

The tenant needs to pay all the rentals until he/she moves out of the property. The deposit will only be returned after the landlord is satisfied that no damage has been done on the property.
SUSscarypoolparty
post Dec 11 2019, 12:15 PM

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QUOTE(Hisham8686 @ Mar 26 2019, 12:21 AM)
If the Tenancy Agreement is two years straight, the stamping fees is higher than a one plus one Tenancy Agreement.

As for a one plus one agreement, usually the tenant has to give an advanced notice of two months (usually) to the landlord expressing the tenant's intention of extending the tenancy. The notice may be writing or verbal notice, subject to the wording of the tenancy agreement. If it's a written notice, then a simple letter or even a Whatsapp msg would suffice, unless there are major revision of the original terms within the tenancy agreement.

Whether the landlord can raise the rental in a one plus one tenancy agreement is subject to the wording of the original tenancy agreement, the same applies in a two years tenancy agreement.
*
it cuts both ways bro.

both party has equal right to terminate or extension if given sufficient notice stated in an agreement.

landlord even can raise price after the 12 months even with +1 if such increment is provided in an agreement.
alandhw
post May 29 2020, 09:56 AM

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Would like to ask, for the Room renting tenancy agreement, the inventory list section have to include the entire house items or just list down the room inventory list only? Thanks.

 

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