Imagine this situation, you want to rent a home and after a lot of searching you’ve found a place for yourself that suits your needs perfectly. You’ve decided this is it; this will be your home now. However now you need to deal with a new problem, the tenancy agreement.
Finding some affordable housing can be hard enough, deciphering a tenancy agreement can be a real pain. Regardless of whether you’re a tenant or a homeowner, it’s important to know the contents of a tenancy agreement and which are the most important parts that need special attention.
While every agreement may differ, there are certain parts that every agreement has in common and it these are the parts which we will be discussing. These are 5 things that you need to keep your eyes out for in a tenancy agreement.
1. Rental fees
In Malaysia homeowners and tenants can freely negotiate rental rates. Usually tenants give a range they are looking for and it’s up to the tenant to agree or negotiate. To make sure you are getting a fair rental, shop around and compare with similar rental units in the area, then you can negotiate accordingly. You can check for rental rates by asking around or check online.
2. Landlord and tenant details
Make sure that details such as IC/passport numbers, phone numbers and email addresses, are available and accurate in the agreement. This will be especially helpful should a problem arise, such as a leaky faucet or air-conditioner repairs.
3. Security deposit
All agreements will most likely have a security deposit, which the tenant needs to pay when they sign the agreement. As the name suggests, this acts as an “insurance” of sorts for the landlord in case a tenant inflicts damages to the property. This may encompass furniture, appliances and the property itself. Most security deposits consist of two to three months of the rental rate.
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4. Start and End date
Nothing lasts forever, every tenancy agreement should have dates for when the tenancy will start and end. This includes the notice period tenants and landlords should serve should either party wish to terminate the agreement beforehand. Optionally, the agreement may include a clause for the extension of the agreement should the tenant wish to stay longer.
5. Maintenance and repairs
A tenancy agreement should mention that the tenant is required to maintain the premises and abide by noise control rules. The agreement should also specify what the tenant should do if any appliance is damaged or in need of repairs and who is responsible for various utilities. Do not accept any oral agreement, keep it all in black and white.
6. Bonus Point: Mode of payment
The mode of payment should also be specified in the agreement. The agreement should list the types of payment that may not be used, for example, if a landlord is not willing to accept cash and would rather have the money banked to them. Most landlords prefer online bank transfer as it is hassle free and easily trackable. Tenants should make sure to keep and file receipts in a timely manner; whether you wish to keep it digital or keep a hard copy is up to you.
Want to know more about rental properties and tenancy agreements? Give us a call, send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 037-450-6655.
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