To reduce crime and safeguard landlords’ investments, Malaysia could implement a policy requiring all rental transactions to be handled by licensed real estate agents.
These professionals would be responsible for conducting document checks and sharing blacklists of criminal tenants, according to Muhazrol Muhamad, Head of the Bumiputera Segment at IQI Global.
Mr. Muhamad’s comments follow statements made by Bukit Aman’s Commercial Crime Investigation Department Director, Ramli Mohamed Yoosuf.
Mr. Yoosuf suggested that landlords could face prosecution for criminal conspiracy or abetment if their tenants engage in illegal activities, such as running fraudulent call centers, mining bitcoin, operating brothels or gambling dens.
“The main challenge is that too many parties are involved in handling rentals,” said Mr. Muhamad.
“Today, homeowners can rent out their units directly through platforms like Mudah, iBilik, or Facebook without involving a licensed real estate agent.”
Muhazrol Muhamad, Head of the Bumiputera Segment at IQI Global
“The main challenge is that too many parties are involved in handling rentals,” explained Mr. Muhamad.
He also pointed out that many rental agreements are facilitated by unregistered agents, middlemen, or subletting companies, making it difficult to enforce regulations effectively.
This situation is far from ideal. Mr. Muhamad argues that only registered real estate agents (REAs) or real estate negotiators (RENs) should be responsible for handling leases to ensure a more regulated, accountable system.
“If the government wants to make rental property regulation more manageable, only registered real estate agencies should be allowed to manage property rentals,” he added.
He also emphasized that regulations should focus on entities that are properly trained and equipped with the resources to enforce the rules effectively.
By doing so, landlords and tenants would be removed from the regulatory spotlight, and enforcement would be concentrated on licensed professionals.
Furthermore, requiring agents to handle all rental transactions would ensure that official contracts are in place and that thorough, know-your-customer-style due diligence is completed.
However, Mr. Muhamad acknowledged that this approach might be challenging for landlords who prefer renting their properties independently without an agent.
“This proposal does have its challenges, as it may burden individual landlords who prefer to rent out their properties without an agent. But from a regulatory standpoint, it could be a more effective solution to ensure a safer and more structured rental market in Malaysia,” concluded Mr. Muhamad.
In conclusion, requiring licensed real estate agents to handle all rental transactions would strengthen Malaysia’s rental market by ensuring proper regulation, reducing crime risks, and protecting landlords from potential liability.
This approach would foster a safer, more organized environment for both landlords and tenants, ultimately creating a more reliable and accountable rental system.
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