Tenancy is the legal possession or interest in Land/Building for a period of time. A Tenancy can be created by any words by the intended parties, namely between the Landlord and Tenant concerning the legal rights and obligations of both parties. But for a legally binding terms, it is advised to have a written Tenancy Agreement.
Your Tenancy Agreement should contain:
a) Details of the property, Landlord and the Tenant;
b) Tenure term (commencement date and the expiry date);
c) Option term/ Renewal clauses;
d) Monthly mode of payment, amount and time;
e) Deposits amount (Security/Utility/Restoration);
f) Express terms and conditions (to protect both parties’ interest);
g) Events of Termination;
i) Inventory list and special conditions (if any).
The Tenancy Agreement must be signed by Landlord and Tenant in presence of witnesses.
The signed Tenancy Agreement must be stamped by the Lembaga Hasil Dalam Negeri (LDHN) to make it valid and admissible within Thirty (30) days of being signed. It is common that the Tenant to bear the Stamp Duty cost of which the amount is based on the rental amount and tenure term.
Term of the tenancy can be ended by the Landlord or the Tenant by serving a valid notice to quit, vacate and deliver vacant possession of the premises.
If the Tenant terminates the Tenancy without a notice (early termination), the Landlord entitled to forfeits the Security Deposit subject to any other terms and conditions.
Likewise, if the Landlord terminates the tenancy without notice, the Tenant entitled to get the Security Deposit from the Landlord and may consider of initiating an action in court against the Landlord for breach in the terms and conditions of the Tenancy Agreement.
Since the Tenancy Agreement is a legally binding document, it is recommended that you hire a lawyer to look through the Agreement to avoid any loss/forfeiture/damages arising from termination of any Tenancy Agreement.
If you need advice on preparing a Tenancy Agreement or questions related to it, please call our lawyers in Gengeys & Co on 03-79721919 or email us as gengeys.co@gmail.com or contact us through the contact page.
