You could be thinking about moving out of your family home to find a place closer to your work place or you need a place for you and your college mates. If you’re renting renting an apartment in Malaysia for the first time, what should you know?
Here are some tips for finding the perfect rental home in Malaysia and securing a tenancy agreement that suits your needs.
1. List down your needs and wants. Know exactly what you need and want in a rental unit. What factors are not negotiable, and what can you compromise on? By determining the particular features you seek will make it easier to find a suitable rental unit.
2. Understand the Tenancy Agreement. You might be wondering if a tenancy agreement and a lease are the same, and if the terms are interchangeable. In Malaysia, they are not. A tenancy agreement is a contract between you and your landlord that outlines the terms of your rental agreement.
3. Know your rights and responsibilities as a tenant. As a tenant, you have certain rights and responsibilities that you should be aware of before signing a tenancy agreement.
4. Check out the neighbourhood. Before signing a lease, make sure you check out the neighbourhood where you will be living.
5. Inspect the property before moving in. Before moving into your new rental unit, make sure you inspect it thoroughly to ensure that everything is in good working order.
6. Understand how much rent you can afford. Make sure you have a clear understanding of how much rent you can afford before signing a lease.
7. Get everything in writing. Make sure that all agreements between you and your landlord are put in writing.
8. Be prepared to pay deposits and fees upfront. In Malaysia, it is common for landlords to require tenants to pay deposits and fees upfront before moving into a rental unit. 1 2.
What is the process of renting an apartment in Malaysia?
After all negotiations are settled, an ‘Earnest deposit’ will need to be made. This usually amounts to the first month’s rent and serves as a booking fee. Once this deposit has been made, the landlord cannot allow other tenants to view the property or rent it to anyone else.
The Tenancy Agreement must be signed by both the landlord and tenant, and both copies must be stamped by the Inland Revenue Board of Malaysia (also known as LHDN) so that it can be legally used in court. The Tenancy Agreement usually costs approximately 20% to 25% of the rental fees, and it includes the Stamp Duty fees and administration charges 1.
Once the Tenancy Agreement is signed, you will need to pay a security deposit which is usually equivalent to two months’ rent
You will also need to pay utility deposits for electricity and water which are usually equivalent to one month’s rent
Finally, you will need to pay for moving costs such as hiring a moving truck or van1.
How do you prepare for this financially?
1. Determine your budget. Before you start looking for a rental unit, it is important to determine how much you can afford to spend on rent each month.
2. Save up for deposits and fees. You will need to pay several deposits and fees upfront before moving into a rental unit. These include an Earnest deposit which usually amounts to the first month’s rent, a security deposit which is usually equivalent to two months’ rent, and utility deposits for electricity and water which are usually equivalent to one month’s rent1.
3. Plan for moving costs. You will also need to pay for moving costs such as hiring a moving truck or van
3. Consider rental insurance. Rental insurance can help protect your personal belongings in case of theft or damage2.
What kind of paperwork do you need to prepare?
1. Tenancy Agreement. The Tenancy Agreement must be signed by both the landlord and tenant, and both copies must be stamped by the Inland Revenue Board of Malaysia (also known as LHDN) so that it can be legally used in court. The Tenancy Agreement usually costs approximately 20% to 25% of the rental fees, and it includes the Stamp Duty fees and administration charges.
2. Security Deposit Agreement. This agreement outlines the terms of your security deposit, including how much you will pay and when it will be returned to you.
3. Inventory List. This list details all of the items that are included with your rental unit, such as furniture and appliances.
4. Proof of Income. You may be required to provide proof of income to show that you can afford to pay rent.
In summary, you’ll need to:
- Determine your budget before looking for a rental unit.
- Save up for deposits and fees such as an Earnest deposit, security deposit, and utility deposits for electricity and water.
- Plan for moving costs such as hiring a moving truck or van.
- Consider rental insurance to protect your personal belongings in case of theft or damage.
- Prepare paperwork such as Tenancy Agreement, Security Deposit Agreement, Inventory List, and Proof of Income when renting an apartment in Malaysia.
Happy house hunting! 🏠🔑”
To reach our editorial team on your feedback, story ideas and pitches, contact us here.
