Rental Procedures:

Ever since rent control was abolished in Malaysia, landlords and potential tenants have been free to negotiate the rental amount. While there are no specific laws governing and regulating the responsibilities and duties of the landlord and tenant, the basic guidelines for renting a property in Malaysia still applies. Having an estate agent well versed in the legal proceedings will be useful. The estate agent will also negotiate on your behalf.


Earnest Deposit:

After all negotiations are settled, an ‘Earnest deposit’ will need to be made. This usually amounts to the first month’s rent and serves as a booking fee. Once this deposit has been made, the landlord cannot allow other tenants to view the property or rent it to anyone else.


Tenancy Agreement:

The tenancy agreement must be signed within seven days from the date the ‘Earnest deposit’ is made. The tenant will also pay a ‘Security deposit’ which is usually two months’ rent and a ‘Utility deposit’ which is half a months’ rent. The tenancy agreement will also prevent you from being kicked out of the premises should the landlord sell the property to another party.


Diplomatic Course:

The tenant, if he is a foreigner living and working in Malaysia indefinitely, must ensure that the tenancy agreement comes with a ‘diplomatic clause’. This clause comes into effect if or when the tenant has to leave the country and requires the contract be terminated early. The tenant will be required to present evidence supporting his reasons for leaving, such as being redeployed to another country for work. The estate agent will be able to assist in ensuring that this clause is stipulated in the agreement. Should this clause be activated, a written notice of two to three months must be given to the landlord.

Once the tenancy agreement has been signed, the estate agent will take it to be stamped by the Malaysia Inland Revenue Authority to validate it. Stamp duty should be paid by the tenant.

As most agreements in Malaysia are for a 12 month lease, it is important for the landlord and the tenant to agree on renewal possibilities once the tenure is up.


Tenant Representative …

Your business is expanding and so does your workforce. Space is getting limited and it is really about time to get a bigger office. But, where? And how do I tell which is better and more cost efficient option? Try engaging a Tenant Representative!

A tenant representative acts on your behalf in negotiating with the landlord right from the beginning on every aspect on relocation, expansion, disposition, subleasing and lease renegotiation of office space. Even better, they provide a great deal of assistance to foreign entrepreneurs who are unfamiliar with local market and practices.


How Will A Tenant Representative Save You Money?


Time Saving. Time is money. Sourcing and comparing rental among buildings can really be mind blowing especially with the limited resources and contacts you have. Engaging a tenant representative is a one stop solution for you to have all the information you need without even leaving your office while you get to stay focus on your business.


Market information is an essence in which a qualified tenant representative is able to make a big difference. Having a grasp on asking rates versus deal rates and incentives available is vital to ensure you get the best terms available.


Corporate advisory on growth strategy within a particular building or market is pertinent to ensure a smooth expansion trail for your business. Tenant representatives are also able to perform financial analysis to help you select the most cost effective location.


Expert negotiation skills are critical for a favorable outcome. Representation gives you subtle leverage during negotiations, informing the landlord that you are professionally represented and undoubtedly advised of alternative sites and comparable lease rates. As an added benefit, a tenant representative may know the temperament of a particular landlord and/or landlord’s representative, and recognize how far to push the negotiations without jeopardizing the transaction. This is a definite advantage when it comes to lease renewals, too.


Familiarity with documents. Tenant representative have a working knowledge of the documents necessary to conduct the transaction. These documents include requests for proposal, letters of intent, lease agreements and work letters and vary from market to market. A tenant representative knows how to customize the documents to meet your needs.

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