Tenancy Agreement Fees in Malaysia: What You Need to Know
Renting a property in Malaysia comes with its share of fees, including the tenancy agreement fee. If you are a tenant or a landlord, it is important to be aware of this fee and how it is calculated. In this article, we will guide you through everything you need to know about tenancy agreement fees in Malaysia.
What is a tenancy agreement fee?
A tenancy agreement fee is a fee paid by tenants and landlords to property agents or lawyers for drafting and processing the tenancy agreement. A tenancy agreement is a legally binding document that outlines the terms and conditions of the tenancy agreement between the landlord and the tenant. It protects both parties` rights and ensures that their obligations are clearly defined.
Who pays the tenancy agreement fee?
In Malaysia, it is common for tenants and landlords to split the tenancy agreement fee equally. However, it ultimately depends on the market and the negotiations between the parties. The tenant or landlord may also choose to engage their own lawyer to draft the tenancy agreement, in which case they will bear the full cost of legal fees.
How is the tenancy agreement fee calculated?
The tenancy agreement fee is typically calculated based on a percentage of the rental amount and may vary from 0.25% to 1% of the total rental amount. This percentage may also differ depending on the location, type of property, duration of the tenancy, and the involvement of a property agent or lawyer.
For example, if the rental amount is RM 2,000 per month, the tenancy agreement fee would be RM 500 if calculated at 0.25%, or RM 2,000 if calculated at 1%.
What are the benefits of paying for a tenancy agreement fee?
Engaging a property agent or lawyer to draft the tenancy agreement ensures that the document is legally sound and protects both parties` interests. It also saves time and effort in drafting the agreement from scratch, ensuring that all relevant clauses are included and the document is properly executed.
The tenancy agreement also serves as a reference and evidence in the event of disputes or disagreements between the tenant and landlord. It is essential to have a clearly defined agreement to avoid confusion and misunderstandings.
In conclusion, the tenancy agreement fee is a necessary cost when renting a property in Malaysia. It ensures that the tenancy agreement is legally binding and protects both parties` interests. Tenants and landlords should take the time to understand the fee`s calculation and benefits to make informed decisions about engaging a property agent or lawyer.