Hi PP,
It is common for individual tenancy agreement tenure to be 2 years fixed and 2 years option to renew subject to prevailing market rental then. If the market is strong for this sector it is good for Landlord to keep it at 2 years and increase the rent after that. If the market is anticipated to slow down after 1 year then it is good to have a longer tenancy of 3 years lock in with a good rental now. Of course, if you are the tenant the reverse is beneficial. Please bear in mind that if you sell a tenanted property, the sale will be with the existing tenancy and option to renew. So it is important to know whether the property is suitable to be sold as investment property or not and the yield percentage.Most important obligations of the Tenant are to pay the rent on time and maintain the premises in good condition. Landlord can review and possibly increase the rent after 2 years instead of 3 years.
David Wong
Principal
QUANTUM Real Estate
mobile:+60193330573
www.quantumrealestate.com.my
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