Frequently asked questions
What is the difference between a tenancy and a lease?
What is the normal tenancy term allowed?
When does the tenant exercise the option to renew the tenancy?
What are the required payments or deposit to be made?
Upon the confirmation and the acceptance of the offer, the tenant is usually required to pay a sum equivalent to one month’s rental as earnest deposit (which shall be treated as advance rental upon the commencement of the tenancy). The tenant is required to pay the followings upon the execution of the tenancy agreement or upon the handover of the premises, whichever is earlier;
- Security deposit equivalent to three (3) months rental.
- Utilities deposit equivalent to One (1) or half (1/2) month rental.
- Stamping fees for the tenancy agreement.
Who prepares the tenancy agreement?
Who pays for preparation of the tenancy agreement?
How to calculate stamping fee?
Can the tenant or landlord terminates the tenancy agreement before tenancy expiry?
Can landlord revise the service charge during tenancy term?
Is sub-letting allowed?
Unless there is a provision in the tenancy agreement, sub-letting is generally not allowed. However, some landlord may consider if the sub-tenant is a reputable tenant.
What is renovation period and rent-free period?
What are the required documents when signing a tenancy agreement?
The tenant is expected to furnished to the landlord the following documents “certified true copy” upon the execution of the tenancy agreement;
- Form 9 – Business Registration Certificate
- Form 24 – Particulars of Shareholding
- Form 44 – Registered Office Address
- Form 49 – Particulars of Directors & Secretaries
- Memorandum & Articles of Association (for Sdn Bhd)
- Director resolution for taking-up the tenancy.
Do I need to reinstate the premises when tenancy expired?
Generally, the tenant is required to reinstate the premises to its original condition upon the expiry or determination of the tenancy. However, if the renovation, fixtures and fittings are in good condition, some landlord may allow the tenant to vacate the premises without the reinstatement.