21/09/2026
Attention Landlords: A Poorly Drafted Agreement Can Let a Bad Tenant "Legally" Refuse to Leave!
Did you know? Many landlords think signing a tenancy agreement template downloaded from the internet is enough — only to find, when a tenant stops paying rent, damages the property, or simply refuses to move out, that the agreement is so vaguely worded that taking legal action to recover the unit becomes extremely difficult!
A Tenancy Agreement is absolutely not a document you should sign "casually." Here are some key points you must pay attention to:
Clearly state the terms of the agreement
The property address, type, scope of tenancy, and the condition of the premises (whether furnished or not) should all be clearly stated in black and white to avoid future disputes.
For furnished units, always prepare an inventory list!
If the unit is "fully furnished" or "partially furnished," make sure to list every item of furniture and appliances in an inventory list attached to the agreement — including quantity, condition, and even photos. This way, if there's damage or missing items upon moving out, there's evidence to refer to, rather than a case of "he said, she said."
Tenancy period cannot exceed 3 years
Under the National Land Code, any tenancy exceeding 3 years is actually classified as a "lease," which requires a separate lease agreement rather than an ordinary tenancy agreement.
There's more than one type of deposit
Besides the commonly known security deposit, there are also:
Earnest deposit — shows the tenant's intent to rent the unit; usually non-refundable if the tenant backs out
Utility deposit — usually 50% of the monthly rent, used to safeguard against unpaid utility bills
Both landlords and tenants have responsibilities
Landlords must allow tenants to live in peace without unreasonable disturbance, and are also responsible for costs such as land tax. Tenants, in turn, must pay rent on time, maintain the condition of the unit, and cannot change the use of the property (e.g., from residential to commercial) without permission.
What happens in case of breach of contract?
If one party breaches the agreement (e.g., failing to pay rent), the other party will typically first issue a Letter of Demand through a lawyer. If the matter remains unresolved, legal proceedings may follow, potentially including an application for an eviction order to reclaim the unit. If the agreement's terms are unclear, this entire process will take longer and become more complicated.
Don't forget to stamp it!
After signing, the tenancy agreement must be sent to the Inland Revenue Board (LHDN) for stamping, so that it can be used as evidence in court should any dispute arise.
Rather than regretting it after something goes wrong, it's better to get the agreement right from the start.
If you have any questions about preparing or reviewing a tenancy agreement, feel free to contact us.
Ray Tan Law Chambers
陈烈铭律师事务所
Disclaimer: This post is for general legal information purposes only and does not constitute legal advice.
