Whether you are a tenant or a home owner looking to rent out your property, it is important to know what a tenancy agreement involves and what are the important features contained within it. Firstly, a tenancy agreement is a legally binding document between the owner and tenant which can protect both parties in the event of a disagreement, or cheating case.

A tenant and owner should never enter into an arrangement without there being a legal document to detail all the points in black and white. This is to prevent a hassle when disputes arise. Here are the basic elements of a tenancy agreement:

Length of Tenancy
Usually the tenancy agreement lasts between one to three years, with clauses allowing for the extension of the tenancy agreement by both parties, subject to further negotiation.

Deposits
Normally, the tenant is required to pay a two or three month rental as deposit and a half month rental as water and electricity (utility) deposit. The two or three month rental advance is sometimes called an earnest deposit, meaning that the owner cannot rent to any other tenant after it has been received. It is also called a security deposit and will not be returned to the tenant if the tenant violates any of the agreement terms. However, if the tenant obeys the agreement terms, the security deposit will be returned when the tenancy period expires.

Termination of Rental Agreement
Termination can be initiated by either parties with a written notice or 2 or 3 months period before the actual termination date. In Malaysia, the Landlord has the right to order the tenant to vacate the premises without any compensation.

Roles of the Tenant
The tenant is expressly forbidden to sublet the apartment or home to any tenants. They are also forbidden from doing any major renovations on the house without first obtaining permission from the owner. If the tenant wishes to knock down a wall to join two units, they are required to pay an extra deposit to the Landlord and obtain his or her permission.

At the end of the tenancy period, all the building structures and fixtures like lights, fans, furniture and electrical appliances that came with the house must be returned in one peace. If any of them are damaged or missing, this may be deducted from the security deposit mentioned earlier.

If there are any unpaid utility bills that the tenant has neglected to settle, then this will be deducted from the utility deposit.

Roles of the Landlord
The Landlord’s responsibility is to pay any maintenance fees, taxes and pay for anything in the house that needs repairs or fixing, especially the roofs, walls, fixtures, pipes , drains and main structure.

Cases of Tenants Running Away Without Paying Rent
Landlords must take note that you cannot evict non-paying tenants without getting a court order and doing things the easy way may land you in trouble. Landlords will also find it challenging to recover unpaid rent.

Similarly, if the tenant runs away, the correct procedure is to lodge a police report first before breaking into your own property in the presence of police officers so that the tenant cannot claim damages to his posessions.


(中文版请看这里:http://www.durianproperty.com.my/blog/article/1238)