One would think being a property owner who generates income for himself by letting out his premises is somewhat enviable. Apart from the fact that to be a landlord, one needs to have financial resources or at least access to them, the role is not without its pitfalls.
Landlord and tenant are bound by the terms of the tenancy agreement. Their rights are provided for in the said agreement that is pre-negotiated over and signed upon reaching a consensus by both parties. There is no one in the same standard tenancy agreement, each differ in accordance to the needs of the landlord and tenant. Here are a couple of things a landlord should know in order to protect their rights:
1. Keeping the sanctity of the property
A pertinent point to look for by the landlord is the provision for a deposit for the breaking of wall(s) assuming that the tenant is renting two or more continuous units. A related issue is that the tenant shouldn’t be allowed to make any alterations to the exterior or interior of the demised premises without the previous consent in writing of the landlord.
Also, the tenant is supposed to yield up the demised premises with all fixtures and fittings belonging to the landlord upon the determination of the tenancy in good and tenantable repair and condition, fair wear and tear excepted. The tenant is required to make good at their own expense any damage caused to the demised premises or fixtures and fittings therein as a result of the tenant’s act or neglect.
2. Bills, Bills, Bills
There are some unscrupulous tenants that leave the landlords in a lurch by skipping town without any notice or even by non-payment. There is a term of the tenancy agreement which allows the landlord to evict the tenant and/or to recover possession of the demised premises upon the non-payment of rent but the Malaysian legal system is pro-tenant.
The landlord is prohibited from evicting the tenant and/or to recover possession of the demised premises without a court order. Tenants who are in breach of their obligations are sometimes threatened with having their supply of water and electricity disconnected. In the absence of express and specific provisions, this approach is not advisable.
Whilst the supplier concerned may expect payment from the landlord before resuming supply, such decisions are dependent on whom the electricity was supplied to. The contract is usually in the name of the property owner, who is the landlord. A clause in the tenancy agreement makes it obligatory for the tenant to pay the electricity charges and other utility bills. This, for all it is worth, is merely an internal arrangement between the landlord and the tenant. As with everything else in business, to save yourself, you have to get it in writing.
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