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Tenancy Agreement Template for Malaysia

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Key Requirements PROMPT example:

Tenancy Agreement

I need a tenancy agreement for a residential property in Kuala Lumpur, with a lease term of 1 year, including clauses for a security deposit equivalent to 2 months' rent, a monthly rental payment schedule, and a provision for early termination with a 2-month notice period.

What is a Tenancy Agreement?

A Tenancy Agreement is a legal contract between a property owner (landlord) and someone who wants to rent that property (tenant). It spells out the key terms of renting residential or commercial space in Malaysia, including the monthly rental amount, security deposit, maintenance responsibilities, and how long the tenant can stay.

Under Malaysian law, this binding document protects both parties' interests and needs to be stamped by the Inland Revenue Board to be fully enforceable. While verbal agreements exist, a written Tenancy Agreement helps prevent disputes by clearly stating everyone's rights and obligations, making it essential for both local and foreign tenants in Malaysian property rentals.

When should you use a Tenancy Agreement?

Use a Tenancy Agreement before handing over your property keys to any tenant in Malaysia. This applies when renting out homes, apartments, office spaces, or retail units���even to family members or close friends. The agreement becomes especially important for long-term rentals lasting more than 3 months.

Get this agreement in place before accepting any rental deposits or allowing tenants to move in. Having it properly stamped and signed protects you from common issues like unpaid rent, property damage, or illegal subletting. For foreigners renting in Malaysia, it's particularly crucial as it serves as proof of residence for visa purposes and utility connections.

What are the different types of Tenancy Agreement?

Who should typically use a Tenancy Agreement?

  • Property Owners/Landlords: Individual homeowners, property investment companies, or commercial building owners who want to rent out their properties legally and securely
  • Tenants: Local or foreign individuals, families, or businesses looking to rent residential or commercial spaces in Malaysia
  • Property Agents: Licensed real estate agents who facilitate rental transactions and often prepare the initial agreement draft
  • Legal Professionals: Lawyers who review, customize, or validate Tenancy Agreements to ensure compliance with Malaysian rental laws
  • Property Managers: Companies or individuals who manage rental properties and handle agreement administration on behalf of landlords

How do you write a Tenancy Agreement?

  • Basic Details: Gather full names, IC/passport numbers, and contact details of both landlord and tenant
  • Property Information: Collect complete property address, lot number, and details of included furnishings or fixtures
  • Financial Terms: Determine monthly rental amount, security deposit, utility arrangements, and payment methods
  • Timeline Planning: Set tenancy duration, start date, and notice period for termination
  • Special Conditions: List any specific requirements like pet policies, renovation permissions, or subletting restrictions
  • Documentation: Prepare copies of property ownership documents and identification papers for stamping purposes
  • Review Process: Use our platform to generate a legally-sound agreement, then review all terms with both parties before signing

What should be included in a Tenancy Agreement?

  • Party Details: Full legal names, identification numbers, and addresses of landlord and tenant
  • Property Description: Complete address, unit number, and detailed description of the rented space
  • Rental Terms: Monthly rent amount, payment dates, security deposit, and utility responsibilities
  • Duration Clause: Tenancy period, start date, renewal options, and notice requirements
  • Maintenance Terms: Clear breakdown of landlord and tenant maintenance responsibilities
  • Usage Rights: Permitted use of property, occupancy limits, and any restrictions
  • Termination Conditions: Valid grounds for early termination and required notice periods
  • Governing Law: Statement confirming Malaysian law applies to the agreement

What's the difference between a Tenancy Agreement and an Agency Agreement?

A Tenancy Agreement is often confused with an Agency Agreement in Malaysian property transactions. While both involve property matters, they serve distinctly different purposes and relationships.

  • Primary Purpose: Tenancy Agreements establish rights and obligations between landlords and tenants for property usage, while Agency Agreements define the relationship between property owners and real estate agents for marketing and managing properties
  • Duration and Scope: Tenancy Agreements typically run for fixed rental periods (6-24 months) covering property occupation, while Agency Agreements often last 3-6 months and focus on property marketing services
  • Financial Terms: Tenancy Agreements detail rental payments and deposits, whereas Agency Agreements outline commission structures and marketing fees
  • Legal Requirements: Tenancy Agreements must be stamped to be legally enforceable, while Agency Agreements require the agent to hold valid real estate licenses under Malaysian law

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