CONFUSED ON HOW TO GO ABOUT BUYING OR RENTING YOUR HOUSE? HERE ... LET US GIVE YOU SOME GUIDELINES.
Regardless of what’s your reason to rent instead of buying, here are a few checklists that you may want to consider:
The issues of affordability depends on the location, type of property, furnish or unfurnished units, tenancy period, amenities, level of security, neighbourhood profile and etc.
For working adults, the area should not be too far from your work place whilst for student or family with school going kids, you would like to choose somewhere close to school or campus. It’s good that you check out the area before deciding to rent and also to get opinion from friends or acquaintances who have stayed/lived there before. Also, to do a travel distance analysis during peak and off-peak period to ensure you are comfortable with the distance and travelling time. However, be prepared for a trade-off between property close to amenities such as schools, shopping complex and traffic congestion.
Generally, properties can be classified as landed and non-landed
In general, non-landed properties (though there are landed development now offering similar facilities) have facilities such as 24-hour security surveillance, swimming pool, gymnasium etc. Be prepared to pay additional charges or higher rent for properties with such facilities.
The usual term is one to three years. A shorter tenancy would generally result in higher rent. Do not sign for tenancy longer than one year if you are unsure you will like the place. It is a norm for tenants to request from the Landlord to allow the option to extend the tenancy if you so desire and of course at a revised rent depending on the market condition.
Upon successful negotiation of rent and terms and conditions of tenancy and before you proceed with the execution of Tenancy Agreement, you are required to prepare the following deposits to be paid to the Landlord: -
Do not prepare your own tenancy agreement. Let the professionals handle them. Both the Tenant and Landlord shall be responsible for the payment of their own legal fee.
The standard legal fee chargeable for Tenancy Agreement are as follows:
|First Rm10,000 annual rental||25% of the monthly rent|
|Next Rm90,000 annual rental||20% of the monthly rent|
|More than Rm100,000 annual rental||Negotiable|
The Tenancy Agreement is a legal document that clearly outlines the obligations of both the Landlord and Tenant hence stamp duty charges has to be paid. Adopt the following formula for calculation of stamp duty :
[(Rental rate x 12 months) – 2400]/250 x Amount based on duration of tenancy
For every RM250 in excess of RM2,400 in annual rental :
|Duration of Tenancy||Amount|
|1 year or less||RM 1|
|>1 year to 3 years||RM 2|
|>3 years onwards||RM 4|
The Tenancy Agreement is a legal document that clearly outlines the obligations of both the Landlord and Tenant. The following are some of the important points to be noted in a Tenancy Agreement :
Always insist on your solicitor to verify the ownership of the property you are renting and ensure only the registered owner(s) is the one signing the Tenancy Agreement (unless there is proper authorisation to sign otherwise). Also, to insist all owners to sign the Tenancy Agreement (if there are more than one owner).