1. Landlord and Tenant Topic 2 by Abdul Jalil Omar
Department of Real Estate Management
Faculty of Technology Management and Business

2. Introduction
In order to understand the nature of landlord / tenant laws, it is important to see how these laws interface with our legal systems.

3. Landlord responsibilities
The PM, acting as an agent for the owner, must understand and obey the legal duties of the landlord.
Many courts are holding on-site managers and property managers, as well as owners, legally responsible.

4. Landlord responsibilities
Habitability
Maintaining habitability in residential property is one of the most important responsibilities of the property manager.
For example, many laws set forth conditions constituting as substandard building provision
Waterproofing and weatherproofing
Door and windows reasonably secure
Hot and cold water (plumbing)
Heating system in good working order
Electrical system in safe working order
Building in good repair (stairs and railings)
Trash and garbage removal
Free from pests
Smoke detectors installed and working

5. Habitability (cont.)

10. Landlord responsibilities
Discrimination
In renting or leasing residential or commercial space, the landlord or PM cannot discriminate against a prospective tenant:
Race
Religion
National origin
Color
Sex
Familial status
handicap

11. Landlord responsibilities
Lawful discrimination
The owner/PM is permitted to differentiate among tenants in the 3 following areas:
Income and ability to pay rent
Poor credit history
History of violence or destructiveness

12. Tenant responsibilities
Pay rent on time
Maintain the rented premises in clean, sanitary and undamaged condition excluding normal wear and tear
Give proper legal notice in writing e.g. moving notice is usually 30 days with a month-to-month tenancy
Allow other tenants quiet enjoyment of their units
Abide by reasonable rules and regulations of the landlord, e.g. pet policy
Comply with local laws such as overcrowding provisions in rent-control laws
Do not commit crimes against property, such as vandalism

13. Property Inspection Chechlist

15. No vandalism

16. Perjanjian Sewa
Refer fail perjanjian sewa

17. Landlord remedies Notice to pay rent or quit
Notice to correct breach of covenant or quit
Notice to quit (30 days)
Notice of belief of abandonment (service may by mail)
Notice of right to reclaim abandoned personal property (when tenant leaves personal property)
Change of terms notice
Transfer of security deposit (upon sale of the property)
Eviction
Retaliation eviction (eg. Proof of nonpayment)
Constructive eviction (eg. Turn off utilities, removes personal belongings)
Actual eviction ( go to court using an ‘unlawful detainer action”) to remove the tenant and collect the unpaid rent

18. Tenant protection Repair and deduct
Non waiver of tenant’s right-tenant cannot waive right of habitability
Entry of tenant’s unit with 4 reasons
Emergency (gas leak)
To make necessary agreed repairs, provide service
Abandoned or surrendered premises
Pursuant to court order
Forcible entry
Seizing personal property (without court order)
Removal vehicles

19. Legislations in Malaysia
There is no specific landlord and tenant law in Malaysia.
Certain provisions of the National Land Code 1965 contain provisions on leases and tenancies.
Tenancy agreements are covered by the Contract Act 1950;
eviction of tenants is covered in a couple sections in the Specific Relief Act.
These laws are vague and toothless, usually to the advantage of the tenant.

20. Malaysian Legal systems
Landlord and tenant issues and distress are handled by Sessions Courts.
The court system is inefficient and is very costly compared to the amount to be recovered.
Even if it seems that landlords do not have a problem in evicting non-paying tenants, recovering unpaid rents is a major problem.

21. Malaysian Legal systems
EVICTION FOR NON-PAYMENT OF RENT
Duration until completion of service of
process
Duration of trial
Duration of enforcement
Total Days to Evict Tenant
Courts: The Lex Mundi Project

22. Deposits
Tenants usually pay a security deposit of two to three months’ gross rental and another ½ month of rent as utility deposit. Rent is usually paid one month in advance.

23. Three Months’ Notice To Be Served Before Expiry Of Transition Period
If the tenant is served with the three months’ notice before the expiry of the transitional period, the landlord will then be able to enter into a fresh tenancy with the tenant immediately after the transitional period i.e., with effect from 1 January 2000 (if both parties so wish), spelling out new terms and conditions obtaining in any ordinary tenancy agreement.
Such interpretation is consistent with the tenant’s statutory right to occupy the premises throughout the transitional period as well as the landlord’s right to vacant possession of the premises immediately upon the expiry of the transitional period. The interests of both the parties have not in any way been prejudiced

24. To Inform The Tenant In Writing Well In Advance
First, the landlord may make it a point to inform the tenant in writing, well ahead of the expiry of the transitional period (at least three months before 1 January 2000), of the automatic cessation of the deemed tenancy on 31 December 1999 pursuant to s. 11(1) of the Repeal Act.
[Note: In fact, no formal notice of such cessation of the tenancy is required under the Repeal Act to be served on the tenant. The notice merely serves as a reminder; it is not a legal requirement.]
At the same time, indicate to the tenant in the letter that he has to vacate the premises in accordance with the said provision of the Repeal Act by the end of the century.

25. Tenancy agreements usually last for a year.
So, what rights do landlords and tenants have in Malaysia, especially as to duration of contract, and eviction?
Tenancy agreements usually last for a year.
Renewal with a possible rent adjustment must be mutually agreed upon.
A notice to vacate must be given to the tenant three months before the expiration of the contract.
The landlord has the right to vacant possession of the premises from the tenant without payment of any compensation.
Tenancies are exempt from government registration. But detailed written contracts are encouraged to protect the landlord

26. References Law of Malaysia, Act 572, Control of Rent (Repeal) Act 1997
Control of Rent (Repeal) Bill 1997
National Land Code.
Decarlo, 1997, Property Management
End of Lecture