Hello all,

I would just like to ask how difficult is it to rent out a place without going thru a property agent? like getting stamp duty.. etc etc. may i know what is the procedure for those who has experience in this?

Just say i found a interested party who is willing to pay the rental price.. what is my next move? getting the contract ready? how many copies each? 2 sets? and the stamping duty? what miscellaneous that i will have to pay?

Your respond is kind appreciated

Nothing is diificult if you are willing to do it ... saving fees for time spend.

1. Collect 1 month non refundable deposit as confirmation.
2. Prepare 2 copies TA
3. Tenant sign TA and pay balance 2 + 1/2 months refundable deposit. Signature to be witness by a third party.
4. Landlord acknowledged confirmed tenancy and sign TA. Signature witness by 3rd party.
5. Stamped TA at LHDN..then give a copy to tenant
6. Agreed on a suitable date to handover key. Normally is b4 start of TA to allow tenant to clean or do whatever .... excluding reno.
7. Landlord collect next rental from 2nd month onwards.
8. Payment of monthly rent is b4 7th day of each month.
9. DO NOT just copy and paste a TA as every TA is different to suit the situation. You will only know it if problems arise.
10. If tenant dont pay rent or delay ... start a new thread and will advise accordingly.

Hi, how do u usually screen your tenant? Can i ask for their salary slip for screening purpose?

Yes. You can also make a phone call to his company discreetly to confirm he is actually working there.

With his consent, you can also check with his current or previous landlords.

You can also request for his ccris report.

With his good reference, be prepared for a lower rent if you are interested in the tenant.


Having said the above, even if he has the money, whether he wants to pay the rent is another matter depending on the tenant's priority.

This post has been edited by mini orchard: Oct 5 2020, 10:36 AM

do we need to collect IC copy from the rental tenant?

It depends on the tenant whether he is comfortable giving you a copy but you can sight his ic during the preparation of TA to ensure that he is your tenant.

A witness to his signature on the TA can also sight his ic to confirm that he is tenant that is signing the TA.

In conclusion, a copy is not necessary as his details are in the TA.

In addition ensure that the ic is actually his and not somebody else ...check the photo and it matches his face. Ask him the address in the ic is whose residence?

Do not agree if spouse, children or other names are use to sign on behalf the TA. Dont buy into whatever reasons given. If he negotiated he signs unless is a company rep.

The above are some of the due diligence to minimise a scammer.

This post has been edited by mini orchard: Oct 6 2020, 09:59 PM

Hello! Thank you for the detailed summary ! How much is the stamp duty and how much should I collect from the tenant? And when should I collect from the tenant?

Monthly rental x 12 minus 2400 ÷ 250 = X (round up to nearest ringgit) x no of years + 10 2nd copy.

Collect money during the signing of TA.

This post has been edited by mini orchard: Oct 7 2020, 10:26 PM

Should there be any earnest deposit when preparing for the TA? and when to collect? once the tenant confirm they wish to rent the place is it?

secondly, should there be a charges on preparing the TA? how much would be the charges? Preparing the TA, & going to LHDN to do the stamping.. Collect RM 200 enough?

So here's in my head..

1) Tenant confirm on renting the place
2) Collect earnest deposit from tenant before preparing the TA
3) Print the TA ( Charge the tenant for the printing of TA/and the time to go to LHDN to do the stamping, and get them to pay for the STAMPING after signing) Can my high school friend be the 3rd witness while signing?
4) TA stamping is completed, i will hold the RM 10 copy and the second copy ( tenant will hold )
5) Deal completed?

Is this correct so far for the procedure?

Another question.. if my tenant vapes... will this make the unit smell ? Should there be any concern in this normally? or a clause

1. Once the tenant confirmed your place, collect 1 month rental deposit. Make known to him that if he cancel, the deposit will be forfeited and if you decide not to rent for whatever reasons, you refund the deposit and pays him an additional same amount collected as his compensation. The deal is considered aborted. Have it signed by both party in a simple letter to avoid a dispute later.

2. Once TA is ready for signing, collect 2 more months deposit, half or 1 month utility deposit and TA fee + stamp duty. RM150 to 200 should be ok.

3. Witness can be anyone NOT related ... e.g. wife, children, parents siblings.

4. Your procedures ... ok

5. Monthly rent should include IWK monthly charges and condo monthly maintenance charges. DO NOT leave it to the tenant to pay other than the utilities. As for utilities payment, landlord can monitor through the apps. Be proactive when the bills start to accumulate.

A paying tenant should enjoy quiet possession of the property and landlord should not enforced too many restrictions. Illegal activities against the law are oredi in the TA. Activities against condo rules are implied e.g. rearing of pets.

Any minor renovation or installing new electrical appliances at tenant's own cost attached to the wall like air con should have landlord permission. What to do with those things after the TA expires, both party have to agree.

This post has been edited by mini orchard: Oct 8 2020, 09:58 AM

Thank you! Currently, my unit does not have a water filter.. if tenant request to have a water filter, will I have to maintain the water catridge? or does the tenant pay for it? how often to change the water catridge?

May i know how long will it take to process the stamping at LHDN as well? what documents else will it required from me besides TA? and the nearest branch/faster at subang jaya area?

Maintenance of any appliances supplied are the responsibility of tenant. Do list all items in the TA as an attachment and spelt out clearly in the TA who is responsibile. Do have allowance for wear and tear and the quality of appliances supplied.

Q at LHDN depends on number of transactions for the day. On non peak time, it can be done in half hour ... max about an hour of waiting. If you are in SJ, the nearest LHDN is in Shah Alam, Kumpulan Perangsang Building, 6th floor.

You need to fill a request for stamping form in duplicate at the counter. Instruction are on the notice board or you can ask for help from those people there. Bring exact amount to avoid return change delay and the 2 copies of TA. The counter will ask which is original and duplicate ... any copy will do as is the same. Since your tenant is paying, after stamping, the 'original' copy is given to him and you keep the 'duplicate'.

Take note the different between Agreement Date (AD) and Tenancy Starting Date (TSD). Your sign on 15.10.20 which is the AD but the TSD is 01.11.20, you have 30 days to stamp the TA from 15.10.20, otherwise a fine will be imposed. You cant stamp it b4 15.10.20 as they will reject.

This post has been edited by mini orchard: Oct 8 2020, 09:49 AM

Thank you for the guidance! this have been very helpful and i really appreciate it.. especially the last point which i was unaware of

On another different scenario, if there was a fire breakout which happened to be the tenant negligence, how is this usually compensated?

As for the LHDN office in Shah Alam, is this the correct location?

https://goo.gl/maps/GjoRoofapGwKMLGT9

ya this is the shah alam branch for lhdn

In the event of a fire, landlord will have to claim from the insurance company for the reinstatement of the property. It is normally stated in the TA that the landlord is NOT responsible for the tenant's possession other than the property in the event of a fire. If the tenant wants to protect his possession against damage in the event of a fire, he has to purchase the homeowner content insurance on his own cost.

As a long term landlord who depends on rental collection as a source of income, it is advisable to buy additional coverage against loss of rental income in the event of a fire where the unit is unable to be rented out pending reinstatement.

Please be aware that if your property fire coverage is purchased by the MC or JMB or the bank on your behalf, it will just be a basic coverage. Any additional coverage, the landlord has to buy separately on his own.


Yes

Noted! have you tried renting out to students before? if so, what are the usual questions that i should be asking? i'm just worried since they're student.. they dont really have steady income.. my potential tenant(student) is willing to pay in advance for 6 months.. but the remaining 6 months who knows?

Students from where ? Renting individual room basis or the entire house ?

As I know, all the students rental are being paid by their parents or sponsor. Definitely they dont have income as they are not working. Unless they use the rental for some other things. What I can suggest is if you rent the entire house to one, sign the TA with the parents. In the event of a default, you can liaise with the student or parents. Do remember that if you sign the TA with the student on the Agreement Date, he must be 18 years and above, otherwise is consider void.

As a landlord, one cannot worry beyond what has not happen after due diligence being done. If the tenant wants to default he WILL default.

I prefer homestay over long term rental ... currently doing ... for 3 years.

This post has been edited by mini orchard: Oct 9 2020, 09:44 AM