Rental Properties

Rental Properties

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The Up-Front Cost You Will Spend When You Sign a Contract

We show an actual example below:

Example

Rent paid

+

Deposit

+

Contract fee

Rental period is 1 year:

1 month rental: RM2,900/month

(This is for the first month rental)

+

2 months deposit: RM5,800 (refundable)

+

0.5 month Utilities (water, electricity) deposit: RM1,450 (refundable)

+

2 Access Card Deposit: RM200 (refundable)

+

Contract Stamping Fee and Commission: RM725

Total Payment: = RM11,075

[Refundable OK means when you move out, if the room is in good condition, it is refundable, otherwise it will be deducted from there].

Explanation:

A.

First month's rental

  • First month's rental,
  • 2 months deposit
  • 0.5 month deposit for Utilities (water, electricity)

The above Three are fairly standard.

Rarely, some owners require a one-month Utilities (water, electricity) deposit.

B.

Access card deposit

Approximately RM90-RM200 per access card.

(It depends on condo and owner)

C.

Contract Stamping

Contract Stamping Fee and Commission

The Stamping Fee and Commission will vary depending on the rental cost and the length of rental period.

Charges also vary depending on the real estate agency.

There are two types of payment options for the initial fee:

1

Pay the full amount directly to the agent company

(The agent company then remits the owner's portion to the owner)

OR

2

First, the agent company's portion is paid to the agent company,

Then, before moving in, the owner's portion is paid to the owner.

(Two payments, two payees)

Note: Most owners prefer 2, because the timing of getting the money is quicker. Most of the time, the process will be 2. Please keep in mind (that it will be 2).

「What's the earliest I can move in?」

After deciding on a unit for rental property, you should have about 2 weeks of “working days” to work on it, because you have to “a) Tenant proceed payment” & “b) Draw up the contract” & “c) Sign the contract on both parties”. a, b, and c all will take some time.Will be arranged to sign the original contract with paper, therefore need time to arrange time with owner and tenant to sign.If we try our best to work out, maybe able to complete the process in a week, but only if various tasks have been done very well and quickly.

Frequently Asked Questions (FAQ)

Q1. Can I rent a property for a short-term period, such as 1 to 3 months?

A1. Yes, short-term rental contracts are available. However, the options are quite limited, so we will discuss the possibilities case by case.

Q2. Could you tell me about property viewings? When is the best time to visit?

A2. Ideally, property viewings should be scheduled this month for move-in next month.

If the viewing date and the move-in date are too far apart, the property owner may not be happy.

Therefore, it's best to set the viewing date with the intended move-in date in mind.

Q3. How should I arrange an Internet contract?

A3. In most cases, tenants arrange Internet service themselves. Very rarely, some Airbnb-type properties may already have it, but this is uncommon.

If you choose a property through us, we provide a free service to assist with the initial Internet registration, saving you the trouble of visiting the provider's store in person.

We cannot be present on the installation day, but we will communicate via messages. If you specify your desired provider and plan (details provided separately), we will register with the Internet company on your behalf. Then, following the Internet company's instructions, the tenant (you) will make the payment online, select the installation date, and wait for the technician to arrive and install.

Note: Online payment to the Internet company requires a credit card or similar method.

Q4. Does the property come with a water purifier?

A4. Rental properties in Malaysia do not come with water purifiers.

Very rarely, a property may have one installed, but this is considered a rare exception.

Q5. How is the rent payment deadline determined?

A5. The rent payment deadline is your move-in date.

For example, consider a move-in date of the 12th.

  • The rent payment date is the 12th of each month (same as the move-in date).
  • There is a maximum grace period of 7 days. In this case, 12 + 7 = the 19th is the last day you can pay without penalty.

In other words, your move-in date + 7 days = maximum overdue date.

  • Standard payment date: monthly on your move-in day (in this example, the 12th)
  • Maximum grace period: until the 19th (payment date + 7 days)

Note: If payment is not made by the end of the grace period (the 19th), the landlord may take legal action.

Q6. Is the deposit paid at move-in refundable?

A6. In principle, the deposit is refundable if there are no issues. However, in most cases, some deductions are made.

1. Room cleaning and inspection fees

  • Upon moving out, air conditioner cleaning/inspection and curtain washing may be required.
  • If the tenant does not know a service provider, the landlord may arrange it, and the cost will be deducted from the deposit.

2. Sewerage fees

  • In addition to water bills, there is a separate sewerage fee called Indah Water.
  • Sewerage fees are the tenant's responsibility. Invoices are issued twice a year (every six months), but tracking can be difficult, so the landlord may pay first. The cost is then deducted from the deposit.
  • Approximate amount: RM100-RM200 per year (varies depending on the condominium).

Q7. Is there a fixed lease period for rental contracts?

A7. Most rental contracts are either 1-year or 2-year leases.

1-year lease (also called a "1+1 contract")

  • "1" means you rent for the first year.
  • "+1" indicates that you can decide whether to continue renting for the second year.
  • The rent may increase from the second year onward.

2-year lease

  • The rent remains the same for the entire 2-year period.

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