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Renting Guide For Tenants
Determine Your
Requirements
Whether you look for property online or through an estate agents,
having a precise idea of your requirements will greatly assist in
finding your ideal place to stay. The main criteria are:
- budget
- location
- type of property
- property size
- duration of tenancy
- furnished or unfurnished
Budget
The monthly rental is commonly featured on advertisements as rental
payments to the landlord are usually made monthly. In addition to the
monthly rent you will need to ensure that you can afford the initial
deposits (normally 2½ months’ rent). A small stamp duty fee on the
tenancy agreement is also payable by the tenant if the rent exceeds
RM2,400.
Location
Location is critical to your decision so get to know the area properly
before renting.
The following considerations will affect your choice of location:
- proximity and access to work
- proximity and access to schools
- amenities including shopping, leisure, religious facilities, parks
- safety
- prestige
Type of Property
The main distinction is between landed and non-landed property. Landed
properties include detached, semi-detached, and link houses.
Non-landed include condominium units and flats. Rooms are also
available to let in private homes.
Also will you only settle for a modern property or are you content
with something more basic?
Property size
Make a checklist of your requirements:
- land area
- built up area
- number of bedrooms
- number of bathrooms
- reception rooms
- size of kitchen
Duration of Tenancy
The normal tenancy term is 12 months for locals and 2 years for
expatriates. However it is up to you to negotiate with the landlord
for a term which suits your requirements. Be aware that landlords will
usually expect a higher monthly rent for shorter terms. The tenancy
agreement may stipulate that the tenancy will continue if notice is
not given at the end of the term.
Furnished or Unfurnished
Whether you rent a place furnished or unfurnished will depend on
whether you already own or intend to buy furniture. Expatriates on a
short-term assignment may prefer to rent a furnished place as this is
the more convenient and usually cheaper option. Rented accommodation
will feel more like home if you furnish it according to your own
taste.
Arrange Viewings
The main way of finding properties to view is to look through property
advertisements either on the internet (on websites such as
http://RealEstateAgent.com.my) or
the printed press (such as the Star Classifieds or specialist property
magazines).
Another way of finding properties to view is to drive through the area
where you want to buy and look for any properties for rent as
advertised by the estate agent’s board placed at the front of the
property. Identify suitable properties and call the numbers featured
on the advertisements. Very few landlords advertise their properties
directly – normally the person you contact will be an estate agent
marketing the property on behalf of the landlord. Find out more
details from the agent about the property advertised and arrange a
time for viewing if the property fits your requirements. Tell the
agent your requirements and find out whether the agent has any other
properties on their books which may be suitable. Make sure you let the
agent know your essential requirements so you don’t waste your time
viewing unsuitable properties.
Estate agents get paid by commission from the landlord on renting the
property. The buyer does not pay the estate agents. Use several agents
to show you properties – if you rely on only one agent you will be
unable to determine whether the properties on his book are fairly
priced compared to other properties on the rental market.
During viewings, write down the property details and your impressions
of the properties. Take photos if the owner allows you to. This will
help you compare properties and remind you of the properties you have
seen. It is all too easy getting confused between different properties
if you do a lot of viewings. Create a shortlist of suitable properties
and arrange second viewings. Take your time during second viewings and
scrutinize the property. Don’t hesitate to open windows, sliding
doors, taps, etc to ascertain whether they are in good working order.
A property in bad working order is an indication that the landlord is
unwilling to carry out appropriate repairs. If the place is furnished
find out which furniture comes with the property as some or all of the
furniture may belong to the current tenant. Are the appliances (fans,
oven, washing machine) good quality? Check the brand names.
Make an Offer
You have now found the ideal place to live and would like to make an
offer. What offer should you give? The price you offer will take into
account the following considerations:
- the asking price: a landlord’s asking price is usually higher than
the price they will actually settle for – talk to the agent to get a
feel for what the landlord realistically wants
- rentals for similar properties: this will give you a feel for what
the market rent should be, especially where condominiums are concerned
- the landlord’s circumstances: the landlord may be keen to rent his
property to meet the financing costs
- the rent you are prepared to pay for the property: this will depend
on your budget, how much you like the property and whether you are
considering other properties
- interest in the property: if the property has been on the market for
a long time without much interest the seller will be more negotiable
than if several buyers are showing interest
- previous rejected offers: previous offers rejected by the landlord
may give an indication of the rent the landlord is looking for –
however the landlord’s circumstances may have changed and he might
accept an offer he previously rejected
If you have been using an agent you should make your offer through the
agent who showed you the property. When making an offer indicate
clearly what you expect to be included in the property (eg, furniture,
dishwasher) to avoid any misunderstandings. Also make sure you
emphasize your positive points as a tenant so the landlord is more
likely to be swayed by your offer (eg, employment credentials, rent
paid by company). You may also offer for a third party to guarantee
your rent (eg, parents).
The landlord will then either accept, reject or give a counter-offer,
and negotiations will continue until a rent is agreed or they fall
through.
The Rental Agreement
Once the rent is agreed between you and the landlord, you will be
expected to pay the first month’s rent to the landlord to confirm the
deal. On signing the rental agreement you will pay 2½ months’ rent to
cover for the security and utilities deposits. The rental agreement
will typically feature the landlord’s and tenant’s particulars, the
address of the property, the agreed rent, the term and commencement
date, as well as the tenant’s and landlord’s covenants.
The tenant normally covenants to, inter alia, pay the rent, not cause
a nuisance, keep the property in good condition, allow the landlord to
show the property to prospective buyers or tenants. The landlord
normally covenants to, inter alia, carry out any repairs notified by
the tenant, take out fire insurance, allow the tenant to peaceably
occupy the property.
If the tenant is an expatriate, the rental agreement may contain an
expatriate clause specifying that the tenant may end the agreement if
he is transferred to another location. Other clauses may be negotiated
with the landlord, including the right to end the agreement if a
development starts near the property. The agreement will also
stipulate what is to happen at the end of the term, eg tenant to give
notice to end or renew the tenancy.
The tenancy agreement also often includes the inventory for the
property. Before signing the inventory, make sure that all the items
included are actually present in the property and write down on the
inventory any defects to the property or furniture to avoid any
dispute at the end of the tenancy. You may also want to take pictures
when you move in to avoid any dispute as to whether any defects were
already present when you moved in.
Leaving the Property at The End of The Tenancy
Your tenancy is coming to an end and you do not wish to renew the
tenancy. Make sure you check your rental agreement to determine
whether you need to give notice to the landlord that you wish to
terminate the tenancy. Give proper notice as specified in the
agreement.
When leaving, go through the inventory to ensure you are leaving the
property as you got it at the start of the tenancy; otherwise the
landlord may be entitled to keep part or all of your deposit. Also
ensure that you pay all outstanding bills you are responsible for as
failing to do so may entitle the landlord to keep your utilities
deposit.
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