Oct 14 2023, 06:47 AM
QUOTE(Moneylust @ Oct 14 2023, 02:20 AM)
Dear all,
My mother has a property that she rented to a tenant (2 years+option to renew 1 year) According to the Tenancy Agreement, the rental for the option to renew year is fixed to be the same as year 1 and year 2. So if monthly rental for Year 1 and 2 is RM1600, then rental for Year 3 is also RM1600.
Problem for my mother is, the agreement was made and signed during the Covid years. This year, the average rental for a similiar property is RM2k as students return to campus (this property is in a university town).
The tenant is a good paymaster and never caused any problem and has made known her intention to take up the option to renew. However, my mother plans to reject the renewal and find another tenant who will pay RM2k.
My question is - can my mother do that? Is this a breach of the tenancy agreement? Can the tenant take my mother to tribunal/court and win? Is the tenant entitled to the standard 2 months'compensation for pre-mature termination of tenancy?
My mother don't speak English and I have to do all the work - I told her bad karma lah especially at her advanced age but she still insist on earning those extra hundreds of RM.
Option to renew doesn't mean must renew UNLESS both party agreed to the new terms.My mother has a property that she rented to a tenant (2 years+option to renew 1 year) According to the Tenancy Agreement, the rental for the option to renew year is fixed to be the same as year 1 and year 2. So if monthly rental for Year 1 and 2 is RM1600, then rental for Year 3 is also RM1600.
Problem for my mother is, the agreement was made and signed during the Covid years. This year, the average rental for a similiar property is RM2k as students return to campus (this property is in a university town).
The tenant is a good paymaster and never caused any problem and has made known her intention to take up the option to renew. However, my mother plans to reject the renewal and find another tenant who will pay RM2k.
My question is - can my mother do that? Is this a breach of the tenancy agreement? Can the tenant take my mother to tribunal/court and win? Is the tenant entitled to the standard 2 months'compensation for pre-mature termination of tenancy?
My mother don't speak English and I have to do all the work - I told her bad karma lah especially at her advanced age but she still insist on earning those extra hundreds of RM.
In a TA, there is always a term for rental revision upon renewal and any new terms can be added.
Now coming to maths ....
For extra of 400 per month (4.8k per annum), let's say agent fee is 2k and minor repairs and repainting is another 2k and possible void period is another 2k. This is for first year only.
Second year onwards will not much problem.
If landlord can DIY, then should be ok but not forgetting the new tenant may not be like the old.
ALL INVESTMENT IS NOT RISK FREE. You may or not get 2k. Maybe only 1.8k or some other figures.
You are the landlord and you make the decision, either this renewal or next renewal.
This post has been edited by mini orchard: Oct 14 2023, 07:59 AM
Quote
0.0136sec
0.93
6 queries
GZIP Disabled