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Malaysia – Lease Agreements

In Malaysia, the typical lease term for renting property varies between 12 and 24 months. Landlords usually prefer to rent their property for at least a year, as it provides them with more stability and security in terms of consistent rental income. However, some landlords may be willing to rent for shorter periods, such as 6 months, especially for fully furnished properties that are in high demand.

Furnished vs. Unfurnished Properties

In Malaysia, both furnished and unfurnished rental properties are available, and the choice between the two depends on individual preferences and needs.

Furnished properties come with a complete set of furniture, appliances, and household items, while unfurnished properties come with just the bare necessities such as electrical wiring and plumbing. Furnished properties are usually more expensive compared to unfurnished properties, and are commonly rented by expatriates and short-term tenants.

A typical furnished property in Malaysia will come with the following items:

  • Bed and bedding
  • Sofa and chairs
  • Dining table and chairs
  • Kitchen appliances (e.g. refrigerator, stove, microwave)
  • Television
  • Air conditioning units
  • Washing machine
  • Curtains

Lease Agreement Clauses

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The standard or typical clauses in a lease agreement in Malaysia include:

  • The names of the landlord and tenant
  • The rental amount and payment terms
  • The start and end date of the lease
  • The property description
  • The security deposit amount
  • The utilities and services included in the rental
  • The conditions for renewing or terminating the lease
  • Maintenance and repair responsibilities
  • Restrictions on subletting or assigning the property
  • The rights and responsibilities of the landlord and tenant

Additional Clauses

In addition to the standard clauses, there may be additional clauses included in a lease agreement in Malaysia, which are not mandatory but may be agreed upon by both parties. Some examples of such clauses include:

  • The requirement for the tenant to obtain insurance for personal property
  • Restrictions on making alterations to the property
  • A clause that requires the tenant to pay for repairs caused by misuse or neglect
  • A clause specifying the penalties for late rent payments

Expats Awareness

Expats should be especially aware of the following when signing a lease contract in Malaysia:

  • The security deposit amount and conditions for its return
  • The utility bills and services included in the rental
  • The conditions for renewing or terminating the lease
  • The restrictions on making alterations to the property
  • The penalties for late rent payments

It is important for expats to thoroughly read and understand the lease agreement before signing it, and to seek professional advice if necessary.

Condition Reports

Condition reports are not common in Malaysia before signing a lease agreement. However, it is still a good practice for both the landlord and tenant to take photos and make a written record of the condition of the property before moving in, to avoid any disputes at the end of the lease.

Qualifications & Licenses

Letting agents in Malaysia are not required to possess any specific qualifications or licenses, but they are required to be registered with the Ministry of Housing and Local Government. This registration helps to ensure that letting agents are operating legally and that tenants are protected against unscrupulous agents.

Association & Contacts

There is no specific association or organization in Malaysia that reputable letting agencies should be a member of. However, it is recommended to look for agents who are registered with the Ministry of Housing and Local Government and have a good reputation in the industry.

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