Cross posting from property Q&A.... Sorry if its against the rules.

Hello, I need to inquire regarding a rental contract.

My parents have a house which they found a potential tenant. Since we found this tenant online, we don't have an agent to prepare the contact. I know that there are samples online which I can use.

However since the tanant requested the rental to be made to an enterprise, I am curious, is there anything this I have to amend?

Is there any difference of renting a house to a person then to an enterprise? As far as I know, the potential tenant works as in the gov (law enforcement) and wants to rent with the family.

Any suggestion or comment would be much appreciated.

by right, rental return is to be declared as income, minus interest, if applicable. usually kalau personnel dia tidak declare as expenditure. Kalau enterprise, business, selalu ada declare and becomes extra income yada yada.

kalau rent to personnel, hantam saja laaa. any good document can be used, then hantar stamping. If takut, then go lawyer, halh-half pay, ~RM500 depends on rental value and period.

I'm no worried about the income. I'm just curious about the difference of renting the place to a person or enterprise.

In short, my parents r renting to an enterprise, not a person. Is there anything I should be aware of?

Shouldn't be any issues. In Malaysia the landlord tenant relationship is not regulated. So in the end it all depends on the agreement.

Here's my 2 cents:
1. Clarification: 'Enterprise" means an unincorporated business (sole proprietor or partnership) where personal liability is not separated from business liability. In Malaysia, such business usually have the word "Enterprise" attached to it (e.g., Chong Enterprise). Contrast this with limited liability business (e.g., Chong Sdn. Bhd.)

2. Question: What is the difference between renting house to Chong Enterprise and Ah Chong the person?
Answer 2u: Ayam not a lawyer, so I don't know. My opinion is that you can rent a house to a business entity in order to house the employees of the business. Business owner can deduct the rent as business expense.

However, if business owner does not explicitly states that it is for business employee residential use, then it is mala fide to rent the house to business owner for other purposes (e.g. such as for business owner's own use).

When you rent a house to Ah Chong the person, it is up to Ah Chong to declare to gomen how many sqf of the house that Ah Chong use for business purpose and how many sqf for own use. Then, he can treat part of the rental as business expense.
Same case if Ah Chong live in his own house, he can declare a certain area is used for business use and treat the part of the mortgage interest payment as business expense.

Also, you cannot rent a residential house to Enterprise in order to conduct business. Tenancy have to explicitly states that house is for residential use only.

Update: Initially, I though OP wanted to rent house as Enterprise. Then i realize that OP wants to rent house to Enterprise.
Update 2: Minor typo corrections.

This post has been edited by pcnk1337: Oct 2 2018, 10:03 PM

Enterprise is sole proprietorship.

He needs to insert his enterprise number rubber stamp and official registered address

should be not big issues..

just that in agreement.. u needed to state clearly the enterprise name & registration numbers..

and to be safe side.. u better ask for more deposit...

This post has been edited by nexona88: Oct 2 2018, 10:20 PM

1. The contract should state that the residential* house is for residential use only.
2. Unless specify so, there is nothing stopping the business owner from stuffing 20 foreign workers into the house. Therefore, max occupancy persons should be stated. Max guest should also be stated.
3. Unless specify so, there is nothing stopping the business owner from subletting the house or run a AirBnb business with it.
4. When you rent to a business, you don't get the right to vet the people staying in the house. You only get to vet the business owner.
Be aware of switch and bait strategy. Business owner can swap employees living in the house as they see fit. You probably can only specify what type of employee that gets to stay in the house (e.g., must be full-time, works for 40 hours a week, draw a certain amount of salary, does non-labor intensive jobs).
You could state in the contract that business owner have to provide proof of employment of the tenant(s) when requested. Also if tenants are family, then marriage certificate.

* presumption here.

Normally if rent to company entity, means owner is not staying in it.

So you need a proper and stamped contract to protect yourself.
You don't want the company use the property to host illegal worker or conduct any illegal activities that causing landlord hassle and potential issue.

So insert clauses that need to protect yourself. (just like above post)