Procedures & Guide For Renting Property In Penang, Malaysia.
Guide for renting property
After you have found a property of interest, the next step is to understand the process for renting the property. The following are basic steps that a tenant follows when renting property in Malaysia Penang.
STEP 1.
To pay one (1) month earnest deposit on letter of offer / acceptance.
This is the booking deposit and the amount is usually equivalent to one month's rent. After the landlord signed the Letter of Intent and accept this deposit, he cannot rent the said property to any other party. This deposit will become part of the security deposit or advance rental after the legal Tenancy Agreement is signed.
STEP 2.
Within 14 days from date of acceptance both parties signs the Tenancy Agreement. Upon signing the tenant to pays up balance:
1) Security deposit : One month's deposit for every year of lease. 2 months deposit for furnished unit.
2) Utilities deposit. ( For water and electric deposit ).
3) Gov't stamp duty and agreement fees. (preparing of contract and attending to stamping at Inland revenue stamp office).
Upon full payment, Tenant receives keys and take possession of property.
STEP 3.
The Tenancy Agreement is sent to stamp office for stamping. Landlord & tenant receives the stamped copy of the agreement.
The Tenancy Agreement will have to be stamped by the Inland Revenue Authority of Malaysia. Only after the Tenancy has been stamped then it becomes a valid legal document. This is to protect the interest of both contracting parties.
When the lease term ends, the security deposit will then be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs, damages and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.
The stamp duty is usually borne by the tenant or shared between the landlord and tenant and computed as follows:- (Below is the calculation of stamp duty).
What are the fees are associated with renting property in Malaysia?.
Rental rates are inclusive of Monthly service charges. Tenant pays for the utilities bills such as water, Indah Water (sewerage) and electricity.
STEP 1.
To pay one (1) month earnest deposit on letter of offer / acceptance.
This is the booking deposit and the amount is usually equivalent to one month's rent. After the landlord signed the Letter of Intent and accept this deposit, he cannot rent the said property to any other party. This deposit will become part of the security deposit or advance rental after the legal Tenancy Agreement is signed.
STEP 2.
Within 14 days from date of acceptance both parties signs the Tenancy Agreement. Upon signing the tenant to pays up balance:
1) Security deposit : One month's deposit for every year of lease. 2 months deposit for furnished unit.
2) Utilities deposit. ( For water and electric deposit ).
3) Gov't stamp duty and agreement fees. (preparing of contract and attending to stamping at Inland revenue stamp office).
Upon full payment, Tenant receives keys and take possession of property.
STEP 3.
The Tenancy Agreement is sent to stamp office for stamping. Landlord & tenant receives the stamped copy of the agreement.
The Tenancy Agreement will have to be stamped by the Inland Revenue Authority of Malaysia. Only after the Tenancy has been stamped then it becomes a valid legal document. This is to protect the interest of both contracting parties.
When the lease term ends, the security deposit will then be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs, damages and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.
The stamp duty is usually borne by the tenant or shared between the landlord and tenant and computed as follows:- (Below is the calculation of stamp duty).
- Rental Amount - 200 x 12 (divide by 250).
- Round up to nearest dollar then multiply by the no. of years of lease.
- + Add Rm10 for each duplicate copy.
- + Add RM300 for tenancy agreement fees.
What are the fees are associated with renting property in Malaysia?.
- Tenancy Agreement fees.
- Gov't stamp duties.
- Agent's fees.
Rental rates are inclusive of Monthly service charges. Tenant pays for the utilities bills such as water, Indah Water (sewerage) and electricity.
REAL ESTATE AGENCY FEES.
Agency Fees for successful introduction (Service fees for finding a tenant).
Real estate minimum fee : As above subject to a minimum fee of 1 month rental. (For tenancy less than one year, the agency fee may be calculated on a pro rata basis).
Rent Reviews - 50 % of the fees chargeable under lettings. In addition to the fees stated, claims may also be made for:
the cost of printing, plans, copies of documents, travelling (only where the distance between the estate agent’s office and the property is more than 40 km) and other expenses actually incurred;
the cost of media advertisements, signboards, brochures and other promotional material.
- 1 year tenancy - 1.25 months gross rental.
- Exceeding 3 years up to 4 years - 1.50 months gross rental.
- Exceeding 4 years up to 5 years - 1.75 months gross rental.
- Exceeding 5 years - 1.75 months gross rental.
- Exceeding 5 years - (without option for renewal).
- 1.75 months gross rental - Exceeding 5 years.
- (with option for renewal).
- 1.75 months gross rental plus 0.25 months rental for every additional year.
Real estate minimum fee : As above subject to a minimum fee of 1 month rental. (For tenancy less than one year, the agency fee may be calculated on a pro rata basis).
Rent Reviews - 50 % of the fees chargeable under lettings. In addition to the fees stated, claims may also be made for:
the cost of printing, plans, copies of documents, travelling (only where the distance between the estate agent’s office and the property is more than 40 km) and other expenses actually incurred;
the cost of media advertisements, signboards, brochures and other promotional material.
Note about dog friendly apartment: In Penang, all high-rise apartment "condominium rules" do not allow pets dog, cat, etc. If you need to move in with your family pet, then you have to be aware of the management rules. If there are compliants, you may have to relocate your dog, so it is advisable to look consider a landed house.
However, there are cases of dog friendly condominium where owner with well trained small dog living in and keeping a low profile without any complain from their neighbour. (But this is a risk you have to take if you still decided to live in high-rise condo).
The By-laws of the Strata Title Act Malaysia states that a parcel proprietor is not allowed to keep any animal in his parcel or on the common property which may cause annoyance to any other proprietor.
However, there are cases of dog friendly condominium where owner with well trained small dog living in and keeping a low profile without any complain from their neighbour. (But this is a risk you have to take if you still decided to live in high-rise condo).
The By-laws of the Strata Title Act Malaysia states that a parcel proprietor is not allowed to keep any animal in his parcel or on the common property which may cause annoyance to any other proprietor.
