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 WTA: what is the market practice on rental payment

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TSjuicyliana
post May 20 2016, 11:35 AM, updated 10y ago

when u think juicy, think liana
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My tenancy agreement to my tenant stated that the tenant has to pay before every 7th of the month and I'm holding 2 months rental deposit.

1) What is the market practice on the tenant's deadline to pay up?
2) By which date should i ask the tenant to move out if he still haven't pay the rent?
3) Do you all generally allow the tenant to offset the rental?
4) If the tenancy agreement has expired, can i just raise the rent to get the tenant move out?
MechGabba
post May 20 2016, 11:39 AM

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I just got a tenant as well. Paid up 2 months deposit, but first month rental still outstanding. Penat.


Based on the inputs i get, if tenant doesnt pay up until depletion of deposit then change lock.


If i have it my way I'd ask the tenant out already...but since get deposit clock then the clock is ticking for the tenant.
VOOSH
post May 20 2016, 12:08 PM

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QUOTE(juicyliana @ May 20 2016, 11:35 AM)
My tenancy agreement to my tenant stated that the tenant has to pay before every 7th of the month and I'm holding 2 months rental deposit.

1) What is the market practice on the tenant's deadline to pay up?
2) By which date should i ask the tenant to move out if he still haven't pay the rent?
3) Do you all generally allow the tenant to offset the rental?
4) If the tenancy agreement has expired, can i just raise the rent to get the tenant move out?
*
1. Standard is 7 days grace period.
2. After 2 consecutive months no pay rent, any date after that.
3. NO NO to offset rental with deposit.
4. You have to right to raise rent or ask them leave as its standard in Tenancy Agreement.

This post has been edited by VOOSH: May 20 2016, 12:08 PM
VOOSH
post May 20 2016, 12:11 PM

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QUOTE(MechGabba @ May 20 2016, 11:39 AM)
I just got a tenant as well. Paid up 2 months deposit, but first month rental still outstanding. Penat.
Based on the inputs i get, if tenant doesnt  pay up until depletion of deposit then change lock.
If i have it my way I'd ask the tenant out already...but since get deposit clock then the clock is ticking for the tenant.
*
U can't change lock. its illegal for landlord to do so. If they make police report, your butt gonna get burned.

Illegal customary practice of landlord reclaiming premise from tenant

P/S. offsetting the deposit is not advisable as if your unit is rented out fully furnished and by the end of the day furnitures/fixtures are damaged then there will be no funds for you to offset the damage cost unless your unit is empty unit.

This post has been edited by VOOSH: May 20 2016, 12:13 PM
MechGabba
post May 20 2016, 02:09 PM

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QUOTE(VOOSH @ May 20 2016, 12:11 PM)
U can't change lock. its illegal for landlord to do so. If they make police report, your butt gonna get burned.

Illegal customary practice of landlord reclaiming premise from tenant

P/S. offsetting the deposit is not advisable as if your unit is rented out fully furnished and by the end of the day furnitures/fixtures are damaged then there will be no funds for you to offset the damage cost unless your unit is empty unit.
*
I see you're in the real estate biz?..so what would be the SOP if tenants default payments? my agent herself said its ok for landlord change lock if tenant don't pay for 2 months.


i can't open the llink...in office cannot open FB.
VOOSH
post May 21 2016, 09:13 PM

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QUOTE(MechGabba @ May 20 2016, 02:09 PM)
I see you're in the real estate biz?..so what would be the SOP if tenants default payments? my agent herself said its ok for landlord change lock if tenant don't pay for 2 months.
i can't open the llink...in office cannot open FB.
*
Yea. I'm sort of in the real-estate industry. But i mainly only help owners manage their rental investments. Buying/Selling is secondary stuff.

SOP = Serve Notice > Claim Rent > Court Order > Claim Possession

Anyway the only magic word to dealing with these kind of headache tenants is being "vigilant". Keep a close eye on any signs of any unwanted/undesirable scenarios that may potentially happen with this tenant. Majority agents in the market actually doesn't truly know the actual clauses in property law. Most of them "main tembak" only.

Yea, under majority mindset and so called logic thinking, you the the owner of the house, tenant not paying rent since its your house which is stated in SPA, you got all the right to go change locks, cut electricity/water supply. Think again, if they come across a tenant that knows how to retaliate (pardon me for not listing it out, i dont want potential tenants from hell learning from here.. haha) then the owner will get themselves sued back for damages etc. In the end, owner may have to let the tenant live there for free for X number of time and also need to pay them compensation/damages/lawyer fee upon court orders. Then upon tenant finally leaves the property, normally the owners will find the interior is damaged/missing/sabotaged.

In my opinion, no doubt buying property and renting it out is a good long term investment. But being a landlord is not as easy as [[ buy a house=get a tenant=collect rental=making money ]]. In Malaysia, most investors only knows how to buy properties but coming to manage the property and the tenants, they really have limited knowledge thus an initially good investment becomes a lost. So owners are advised to follow legal procedures to protect themselves better. Since in Malaysia is pro-tenant.

P.S. Court eviction order could take 3 to 6 months at Sessions Court and the costs of the proceeding is normally between RM7K-RM25K depending on circumstances. So screen your tenants, do not simply rent out your unit because your a desperate coz if shit happens in the end you may need to fork out more.

[i can't open the llink...in office cannot open FB.] = use your phone app icon_idea.gif icon_idea.gif

This post has been edited by VOOSH: May 21 2016, 09:20 PM
Autocountstick
post May 21 2016, 11:50 PM

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I rent other place cheaper
forever1979
post May 27 2016, 02:40 PM

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QUOTE(MechGabba @ May 20 2016, 02:09 PM)
I see you're in the real estate biz?..so what would be the SOP if tenants default payments? my agent herself said its ok for landlord change lock if tenant don't pay for 2 months.
i can't open the llink...in office cannot open FB.
*
dont listen to the agent. this will sure put u in the jail and not the tenant.

if the tenant dont want to move out, jia lat, only can proceed with court order. normally take few months to obtain the orde.

so secure a good tenant is a luck. I always maintain my rental if the tenant is good.


TSjuicyliana
post May 30 2016, 11:58 AM

when u think juicy, think liana
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QUOTE(forever1979 @ May 27 2016, 02:40 PM)
dont listen to the agent. this will sure put u in the jail and not the tenant.

if the tenant dont want to move out, jia lat, only can proceed with court order. normally take few months to obtain the orde.

so secure a good tenant is a luck. I always maintain my rental if the tenant is good.
*
increase rental if tenant is no good? LOL
peri peri
post Aug 9 2016, 11:56 AM

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maybe get post dated cheques

win win for all
aurora97
post Aug 9 2016, 11:03 PM

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QUOTE(juicyliana @ May 20 2016, 11:35 AM)
My tenancy agreement to my tenant stated that the tenant has to pay before every 7th of the month and I'm holding 2 months rental deposit.

1) What is the market practice on the tenant's deadline to pay up?
2) By which date should i ask the tenant to move out if he still haven't pay the rent?
3) Do you all generally allow the tenant to offset the rental?
4) If the tenancy agreement has expired, can i just raise the rent to get the tenant move out?
*
Although it's widely regarded as a common practice or to some as market practice, people can always contract out of existing arrangements so long as both parties agree to it. Once the contract is signed, it's binding between both landlord and tenant.

1) What is the market practice on the tenant's deadline to pay up?
7th calendar day of the subsequent month.

2) By which date should i ask the tenant to move out if he still haven't pay the rent?
Even when the first payment is missed, you can ask the tenant to move out.

There are however an "indulgence / waiver clause" or an "Event of Default Clause - remedy a default within 30 days failing which immediate termination of tenancy agreement etc..." that you may exercise.

It's a commercial call as to how you choose to exercise these remedies.

3) Do you all generally allow the tenant to offset the rental?

No. As a side note, most tenancy agreement do expressly prohibit offsetting of rental. IF you do so, you will weaken your recovery ability later on should the tenant default on rental.

4) If the tenancy agreement has expired, can i just raise the rent to get the tenant move out?
*


That depends on the construction of your agreement. Some agreements have a "failure to yield up provision", this essentially allows the landlord to double up the rent until the tenant moves out.

This post has been edited by aurora97: Aug 9 2016, 11:03 PM

 

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