Tenancy Agreement Dispute Malaysia

Property Times took the unique opportunity to interview Mr. Lim Wei Jiet, a lawyer from the Supreme Court of Malaya, who currently works at a Dispute Resolution company in the Kuala Lumpur-based boutique, to provide insight into the relationship between landlord and tenant by taking stock of the law in the Malaysian context. A rental agreement is defined as a contract signed by both the lessor and the tenant, in which all the conditions for renting a property are clearly defined. Both parties can negotiate the terms of the rental agreement and, as soon as they accept and sign the document, the owners and tenants are bound by the terms of the aforementioned agreement. While it is more common for landlords to establish their own lease, it is best to hire a lawyer to do so or at least review it by a professional to ensure that all parties are best protected during the rental period. Note that the organization of the rental agreement involves attorney`s fees and although they are usually borne by the owner, there is no specific provision for this purpose. Therefore, if the property owner is the one who commissioned a lawyer to draft the agreement, it is usually recommended that tenants hire their own lawyer to verify the agreement before signing. The attorney`s fees and stamp duty of Lembaga Hasil Dalam Negeri Malaysia (LHDN) are as follows:Attorney`s fees for a lease term of three years and beyond:First rental of RM10,000 – 25% of monthly rent Next Rent RM90,000 rental – 20% of monthly rentMore than RM100,000 – negotiable stamp duty for LHDN:Rental for each RM250 by RM2, 400 RentalLess than 1 year: RM1Zentre 1-3 years: RM2More than 3 years: RM3 Annual rent below RM2,400 – no stamp duty Here is an example of what the calculations would be, if you rent a property for RM1,500 per month:Lawyer`s fees: RM1,500 x 25% = RM375Stamp Duty: (RM18,000 (annual rent) – RM 2,400) / RM250 x 1 year = RM62, 40 Total for attorneys` fees and stamp duty: RM437.40The above information on the details of attorneys` fees for the rental comes from Speedhome, an online platform that people can rent directly from their site. Therefore, landlords and tenants can negotiate the terms of the rental agreement with each other. Once both parties have accepted the terms of the contract, they will have to sign the lease and be subject to the terms of the contract. A lease is a legal-grade contract between a landlord and a tenant. It describes the obligations and obligations of each party during the rental period….