Tenancy Agreement Act Malaysia: A Guide to Understanding Tenancy Agreements
Tenancy agreements are legal contracts made between landlords and tenants that outline the terms and conditions of a rental agreement. In Malaysia, tenancy agreements are governed by the Tenancy Agreement Act, which sets out the rights and obligations of both parties and provides a framework for settling disputes.
Whether you are a landlord or a tenant, it is crucial to understand the key provisions of the Tenancy Agreement Act to ensure that your rights are protected and your obligations are met. In this article, we will provide a brief overview of the Act and its key provisions.
What is the Tenancy Agreement Act?
The Tenancy Agreement Act is a federal law that governs the relationship between landlords and tenants in Malaysia. It sets out the legal framework for renting a property, including the rights and obligations of both parties, the rules concerning rent, security deposits, and eviction procedures.
The Act applies to all tenancy agreements for residential and commercial properties, including houses, apartments, and offices. However, it does not cover tenancies where the rental amount does not exceed RM2,000 per month or those where the tenant is a family member of the landlord.
Key Provisions of the Tenancy Agreement Act
1. Rental amount and rent increment
The Act stipulates that the landlord and tenant must agree on the rental amount and the rent increment in the tenancy agreement. The rent increment must be reasonable and cannot exceed 10% of the existing rent amount.
2. Security deposit
Landlords are allowed to collect a security deposit from tenants, which must not exceed two months` rent. The deposit must be refunded to the tenant at the end of the tenancy agreement, subject to any deductions for damages or unpaid rent.
3. Maintenance and repairs
Both landlords and tenants have a duty to maintain and repair the property in a timely manner. The landlord is responsible for major repairs, while the tenant is responsible for minor repairs.
4. Termination of the tenancy agreement
The Act sets out the rules for terminating a tenancy agreement. Landlords are required to give tenants at least two months` notice before terminating the agreement, while tenants are required to give landlords at least one month`s notice.
5. Eviction procedures
If a tenant fails to pay rent or breaches the terms of the tenancy agreement, the landlord may seek to evict the tenant. However, the landlord must follow the eviction procedures set out in the Act, which includes serving a notice of eviction and obtaining a court order.
Final Thoughts
The Tenancy Agreement Act provides a comprehensive legal framework for renting a property in Malaysia. Understanding the key provisions of the Act is essential for both landlords and tenants to ensure that their rights are protected and their obligations are met.
If you are a landlord or tenant, it is recommended that you engage the services of a lawyer to guide you through the tenancy agreement process and ensure that your interests are protected.