The tenancy term of 3 years + 3 years + 3 years has no co relation with the fee to be charged by agents. The reason of having 3 blocks of 3 years tenancy instead of a 9 years straight lease is to avoid having the Landlord to allow the Lessee to endorse on their title deed the lease and seeking permission from the existing chargor bank, if any. A 3+3+3 years tenancy circumvent this as a any tenancy term more than 3 years is considered a lease.
The agents fee are not automatically payable and are to be agreed between the Landlord and the agent. For a tenancy of 3 years, the usual fee allowable by the governing BOVEAP www.lppeh.gov.my (not MIEA) is up to 1.25 months rental while the fee for a lease above 3 years to 5 years ranges from 1.5 months to 1.75 months rent and 0.25 months rental fro every year exceeding 5 years.
For tenancy agreement, the agent gets paid for the first tenancy term of 3 years. As for the option to renew terms, the agent gets paid 0.5 months rent only if the Landlord engages the agents services for rental review and negotiation with the existing tenant. If the renewal is done without the agents involvement then there should not be a fee involved by the agent unless the Landlord agrees to it.
David Wong
Licensed Real Estate Agent (E2097)
Mobile:
+60193330573
QUANTUM REAL ESTATE - E(3)1320
Read More
