To Rent or Lease a Property in Malaysia
In Malaysia, once you already decide what property you like, which is the first thing to be considered, you must decide whether to rent or lease the property. First, let us differentiate rent from lease. In Malaysia they call it tenancy if the rental period is less than three (3) years. Some owners and tenants will agree to have a contract of two (2) years and then decide to extend for another one (1) year but three (3) years is already the maximum. A property agent such as Edgeprop provides the best service to Malaysians looking to buy a new property. If you are living in Kuala Lumpur area, you can check out Kiara Designer Suites for a modern design property. Aside from that, you can also take a look at Rivercity where you can find the best-looking property. Of course, not to mention the Mont Kiara Meridin and Fortune Avenue as well.
Regarding rental payments, a deposit or bond which is equivalent to three (3) months of the monthly income. And the monthly payment should be paid in advance so before you can transfer in that property, you must pay a four (4) months of the rent of the property. Once you have a contract, whether it is a tenancy or a lease, your tenure is secured. Make sure to use the right method in getting the contract too. You need to get the real estate agent phone number as well.
For three (3) years and beyond, it becomes a lease and is now a registrable interest which should be registered in the title of the property. A lease agreement is a contract between the owner and the tenant where all the terms and conditions are being set therein. In order for a lease to be considered as a lease, it must constitute the three 93) basic requirements. First is the fixed duration of the lease, then the owner must give the exclusive right to the tenant on the property, and the consideration or the price of the lease. Once these three requirements are met, the owner and the tenant can enter into a lease agreement and this agreement is now registrable with the Land Office and the tenant has the right to use the property during the lease period.
Tenancy on the other hand has three (3) types: Fixed tenancy, periodic tenancy and tenancy at will. Fixed tenancy is when the owner and the tenant agree on a fixed period of time For example, from September of this year up to March of next year. Periodic tenancy on the other hand has a fixed rate from period to period. For example, year to year (or yearly), month to month (or monthly) or week to week (or weekly).The tenancy at will is when both parties, the owner and the tenant agree that the tenant can occupy the property at a certain cost but without a written agreement. The tenure and the payment is not secured which is not safe to both parties, but it can be terminated at any time by the owner or the tenant. Check out Taman Puteri Wangsa if you are around Johor area. Aside from that, you can also take a look at Taman Johor Jaya as well. However, if you are looking to move to Penang, you can also check out Pangsapuri Palma Laguna and also The View (Twin Towers). The Pangsapuri Pelangi would be a great option as well as Casa Impian. Don’t forget to check out Marina Tower, Ratu Mutiara as well to get more insights on properties available in Penang area. In Selangor, there is also the Aseana Puteri to check out.
The choice whether to go between tenancy or lease still depend on the requirement of the tenant. If you want to stay in that place for a longer period of time, you have to go with the lease but it your stay in Malaysia is unsure or you only have a contract for less than 3 years then you have to go with tenancy or rent. Whatever works for you it still has its advantages.