As from question, this is the problem I'm facing right now. Not sure whether this is the right place to ask for it...pls move if its wrong
Okay, the story as follows...

Person who rent my dad's house, currently paid the deposit worth 2 months and rental inclusive of electricity & water bill. Before I go and make the contract in lawyer's firm, I informed him about contract and ask his photocopy of IC for the process. After the contract was made, the amount=RM200++, he only agree to pay the stamp duty which is RM60 and my dad has to pay the rest. Before that, my dad told him that the price of contract is unknown and could share the cost which he pays half and my dad for another half. So, went to talk with him. His explanation as below:
1. He doesn't has to pay for it, owner should pay it.
2. His wife who is working in housing ministry(MCA) and his friends told him do not need to pay.
3. Government department has the forms to build the agreement of house renting and contract is not a must for it.
4. We do not inform about the details before make the contract, ie: the price of contract.

So, should my dad just bear the cost of contract?

As far as for my practise, my tenant paid for it..

eugene jk, thanks for the reply, as for last tenant, he is willing to pay the cost of contract. Even previous tenants they are also agree to pay the half price and my dad pay the other half. This is my first time encounter this situation so I need clarify about this. Also, is contract not a must? Just go to government aka housing ministry just to get the agreement between my dad and him?

The cost of the preparing and stamping the lease agreement is typically borne by the tenant. Ask any property agent and they will be able to tell you that the market practice is for tenants to pay for the agreement.

Does your agreement have a clause saying that the tenant bears the cost? If it does have this clause and the tenant already signed the agreement, then he has already agreed to pay!

This post has been edited by gilabola: Mar 6 2009, 10:37 PM

Btw, he hasn't sign the agreement yet, he ask all of his so-called friends and wife aka staff in ministry of housing that he does not need to pay for it. So, for now I know that tenants pay for the contract price. He refuses to pay so until now the agreement is not signed by him. This is quite problematic now between my dad and him. Is that just market practice that tenants pay for agreement or it is a rule or law?

The cost of all tenancy agreements I've come across so far are born by the tenant, so I've never asked whether this is a law or rule. In your case, regardless of that, if the return is good, why sweat over it? Remember that post agreement's relationship with the tenant is vital as well. Say you managed to force the tenant to pay, it's like winning a small battle but losing the whole big war.

if you go through any real estate agencies the common practice is tenancy agreements to be born by tenants, it'll be included as a clause in offer letters.

if you're dealing directly with tenant yourself, it's optional but from experience it's usually 50-50. and agree with meejawa, if you ask me personally i wouldn't mind bearing the cost myself considering there's no agent fees involved.

I agree with livingmonolith. In cases involving real estate agents, tenants are required to bear costs of agreement. I dont think this is law but granted that owner is incurring fees to agent, tenants to pay for contract.

From friend's experiences, agreement serves little protection for owners. Why? If owner breaks contract, tenant wants compensation. If tenant breaks contract, they stay on for 2 months or more and "vanish". Especially true for minor rentals of RM1000 or so. Not worth owner's effort to sue. Only viable if major amount like in retail stores etc.

is the tenant hv to pay..

i rent a house in kl..the owner also asked me paid...

I had spoken to a friend who is a lawyer.. There is no regulation stating that who should pay the fee.. It is just a common practise for tenant to pay..

The bigger issue is whether the tenant will give you and your dad trouble during the tenancy. If the landlord-tenant relationship is already strained from the start, be prepared for more headache later on. There are many areas that can give rise to dispute in the future...

You might want to consider whether you still want to rent out to this dude especially since he has refused to sign the agreement.

i wouldn't make a big fuss over something around RM200...i've encountered experience where the tenant got pissed and damage the house...

you will end up paying more than RM200... i think u shoud have clarified everything clearly first before going ahead with the process...

i never pay the contract fee as a tenant for two house rented before

It should pay by tenant....... this issue must highlight to tenant before rent the house to them.