Hi all,

I got a query.

My condo are rent to a hostel management company and last week i received a official letter from them and mention they decided not to continue after the 2 years contract. (they rent from me 8 years in total). The tenancy contract end on May 2016.

In the letter, they mention they would like to offset the 2 months security deposit with the April and May rental. I tried to check back the tenancy contracts that we signed, never really mention they can do this and infact none of the clause is stated about the term and condition for returning 2 month security deposit. In my knowledge, i should assess the property condition during the handover time and check for any broken/defect that needs to repair, and i will evaluate the cost needed then deduct from the security deposit. Then the security deposit balance will return to the tenant. I thought this should be the way? Kindly advise me if this is not right or if you got such experience, thanks a lot.

To summarize my question.
1.) Can they request to offset the last 2 months rental from security deposit? If this is not stated from the tenancy contracts.
2.) If they insist not to pay me the rental for the last 2 months. But during the handover i found out the house condition are real bad and need to repair with cost. How do i go through the legal way to request for the additional cost?

Regards
Worryman

Hi worryman,

1. "not stated in the tenancy contracts" = your tenancy agreement has loopholes, advise to redo it in the future.

2. from experiences in managing properties, tenants do sometimes request to offset security deposit. Under normal circumstances is not an advisable thing to do as surely some fixtures like lightings, power plugs, etc will need some sort of repairs/replacements due to long duration of rental unless of coz you as the owner doesn't mind the small repair fees on those things as an act of goodwill and/or the tenant has been upkeeping the unit in tip top condition for you.

3. In reference to you summarize Q2, dont do that! M'sian legal system takes too long to deal with these kind of small issues and normally would incur more cost.

What i can suggest is that if they really being a pain and insist of not paying you the last 2 months rental, then you should visit the unit one month before the agreement ends to fully inspect the unit. Make note of all costs the repairs (if any) and calculate the total. At the same time tell them to furnished you the latest utility bills which are all settled with no outstanding amounts.

As i assumed you would have retain half a month of utility deposit (depending on your monthly rent amount) and without any outstanding bills. This utility deposit will act as a buffer for you to deduct the repair costs.

But coming back, it is still not advisable to go this route. Only resort to this when the tenant is nonnegotiable.

Hope this helps.

Appreciated your advised VOOSH.

No problem. Hope your issue will be solved. Update me if do. Nice to know. hehe

it's their right to request, but you can reply with "yes" or "no".

I replied no they ignore me.... sound like they insist no to pay me anymore for the last 2 months.