Sometimes, dispute can arise between the Landlord and Tenant. A simple delay in payment or unresolved property issue can lead to unwanted conflict. This is where the Tenancy Agreement comes in as a legal proof of what has been agreed.
In a nutshell, the Tenancy Agreement is a written agreement of premature terms and conditions agreed and set between the Property Owner and Tenant. It is created to safeguard both the Landlord and Tenant in case of any arising dispute in future. To make your contract legal, both the Landlord and Tenant sign the Agreement, with a witness signing as well. After which, it needs to be duty stamped to enforce the Agreement.
The chargeable sum of stamp duty charges starts at RM2,400 per year and above. Let just say your rent is RM2000 per month which means RM2000 x 12 months = RM24,000
The chargeable sum therefore in this case will be
= RM24,000 – RM2,400 = RM21,600
= RM21,600 /250
= RM87 per year (after round up)
So if you have a 2 years Tenancy Agreement, just take RM87 x 2 years = RM174.
Then you need to add an additional RM10 for every copy of the Agreement. You will need 2 copies for which means your total cost will be RM20 (RM10 x 2 copies)
The final stamp duty cost = RM174 + RM20 = RM194
This is the same as a booking deposit. Once a Tenant decided to want the place, they will pay this booking fee to reserve the unit for 7 days. (A few days delay is acceptable if your Tenant has a valid excuse). Your Estate Agency should hold this deposit for you. The earnest deposit should be 1 month’s deposit. If you Tenant has a changed of heart after the grace period, the Landlord will have the right to forfeit the sum.
This is equivalent to 2 month’s rental payment. The sole purpose of this upfront payment is to safeguard the Landlord in case the Tenants fails to fulfills its monthly rental obligation.
This Utility Deposit which is 50% the amount of the monthly rental. So if the monthly rental is RM2000, the Utility Deposit will be RM1,000. The cost covers any outstanding bills involving electricity, water and gas.
Earnest Deposit: RM 2,000 (Can later offset security deposit by 1 month)
Security Deposit: RM 4,000 (RM2,000 x 2 Months)
Utility Deposit: RM 1,000 (1/2 of Monthly Rental)
RM2,000 x 12 Months
= (RM24,000 /RM250)
= ( RM87 x 2 Years)
= RM174 + RM20 (2 Copies)
Grand Total = RM4,000 + RM1,000 + RM194 = RM5,194