Property Hunter Magazine September Issue 2014 | Page 104

/// Contributor

TENANCY PERIOD AND OPTION TO RENEW

PURPOSE AND COVENANTS

Tenancy period may ranges from a month to several years. It depends on
the target tenant group; expatriate may be wishing to rent for a few months
when he is stationed in Malaysia while a family may be treating it as a
permanent home and looking for a longer renting period. Tenancy can be
divided into the following:-

If the purpose or usage of the tenancy is for residential, it shall be stated
in the agreement. This is similar for commercial tenancy. The covenants
of the tenant and landlord will then be parallel with the purpose of the
tenancy. For example, if the tenant is renting a shop from the landlord, it is
the tenant’s obligation to obtain the relevant licenses to renovate, to store
items, to commence business, indemnify the landlord if there is any claims
arising from the tenant’s fault etc while the landlord shall allow the tenant
to peaceably enjoy the tenanted premise without interference. It is wise to
check your own covenants as a tenant or landlord and make sure the same
are being observed throughout the tenancy period.

Below 3 years

Chris Tan

You can get in touch with him at
Facebook: Chur Associates
Email: [e-mail]

Lease

It is common to hear that tenancy agreements with 1+1, 3+2 and etc. The
number behind the + indicates the option to renew period for the tenancy.
Most of these options normally require notice in advance to the other party
and failure to comply will render the option void. Landlord may favour to
revise the rental during the exercising of the option and must be put down
in writing.

Lawyer Specialising in
Real Estate
Chris Tan is the founder and now
Managing Partner of Chur Associates,
a boutique legal practice that thrives
in delivering business friendly solutions
for its clients and having a niche
positioning of ‘Everything Real Estate’
serving the entire value chain from
the upstream to the downstream.
Chur Associates is a boutique legal
firm founded in 2004, specialising in
designing legal solutions catered to
our clients’ needs. Chur Associates’s
brand promise is “We Deliver!” To that
end, they offer clientsthe necessary
means and methods to ensure their
requirements are met.

Tenancy

More than 3 years

DETAILS OF THE LANDLORD AND TENANT
Check the accuracy of the details such as name and NRIC no. Both landlord
and tenant must make sure that they are reachable on the corresponding
address provided as the notice mentioned above would normally be send
to the corresponding addresses. An advice for landlord is not to put the
tenancy premise as the correspondence address of the tenant despite him
saying it would be the most convenient address. It is definitely not your
intention to send a letter of demand to your own premise to ask for rental in
arrear when the tenant has moved out.

Reading Your Tenancy
Agreement

VACANT POSSESSION
At the expiration of the tenancy period, the tenant has to deliver the keys to
the landlord and it is always advisable for the landlord to visit the premise
and do a thorough check on the furniture provided and the condition of
premise. This practice is essential for both parties to agree on any deduction
on the refundable deposits and to avoid any disputes upon the refund.
The tenancy agreement is the only binding agreement that governs the
relationship between the landlord and the tenant. Thus it is your duty as
the landlord or tenant to understand your obligations prior to signing the
tenancy agreement. If you have signed your tenancy agreement earlier, it is
never too late to observe what your obligations are and at least identify the
above main areas in your tenancy agreement.

DEPOSITS, RENTAL SUM AND MODE OF PAYMENT
The most essential part of the agreement is the consideration. Do check the
amount of the security, utility deposits and rental sum correspond with the
agreement of all parties. The mode of payment must be clearly spelled out
in the agreement too; ie. Payment in advance on 1st day of each calendar
month, within first 7 days of calendar month etc.

o you have a standard tenancy agreement?” This is the most common question

Dencountered by any legal practitioner whenever a landlord approaches them.

It was suggested that this norm emerged from real property agent who provides a
full package service from matchmaking with the potential tenant until signing of the
standard tenancy agreement prepared by their business firm.
However, while the terms of the sale and purchase agreement governed under
the Housing Development (Control and Licensing) Act 1966, particularly to those
prescribed in Schedule I, J, G and H may be standard to the public, there is neither
tenancy act nor pro landlord/tenant act that indicates a “standard” tenancy
agreement. It all goes back to the Contracts Act 1950 where all parties are at
their free will to enter into an agreement based on mutually agreed terms and
consideration. Having said that, have you, notwithstanding as a landlord or tenant,
read through and agreed with the tenancy agreement before signing on those
dotted lines?

While the author makes reasonable
efforts to present information which
he believes to be reliable, the author
makes no representation that the
information or opinions contained in
this article is accurate and complete.
Readers are advised to seek specific
professional advice before acting on
the views.

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I am hoping for a majority yes. Most tenancy agre