TENANCY AGREEMENT CHARGES IN MALAYSIA

Tenancy agreement is very important for both of the landlord and tenant. As a landlord, you would like to have your property well protected and away from unwanted troubles. As a tenant, you would like to have your interest protected during the tenancy period so your deposits is protected and avoid any legal action taken by the landlord. Hence, it is very important that the tenancy agreement is being written properly.

 

In fact, it is the best to hire lawyer to prepare your tenancy agreement as we don’t have the knowledge and skill to write the proper tenancy agreement. For your information, there is standardization in term of tenancy agreement charges in Malaysia and here is the guide for your references:

 

Legal Fee for Tenancy Agreement period of 3 years and below:

 

First RM 10,000 rental – 25% of the monthly rent

Next RM 90000 rental– 20% of the monthly rent

More than RM 100,000 – negotiable

 

Legal Fee for Tenancy Agreement period of above 3 years:

First RM 10,000 rental – 50% of the monthly rent

Next RM 90000 rental– 20% of the monthly rent

More than RM 100,000 – negotiable

 

Stamp duty for Lembaga Hasil Dalam Negeri Malaysia:

Rental for every RM 250 in excess of RM 2400 rental

Less than 1 year: RM 1

Between 1-3 years: RM 2

More than 3 years: RM 3

Annual rental below RM 2400 – no stamp duty

 

For example, renting a property of RM 1000 per month and 1 year renting period:

Legal fee: RM 1000 x 25% = RM 250

Stamp duty: [RM 12000 (annual rent) - RM 2400]/RM 250 x RM 1 (1 year) = RM 38.4 > RM39

Hence, the total fees for legal fee and stamp duty will be RM 250 + RM 39 = RM 289

 

Other than legal fee and stamp duty, the tenants are required to pay several deposits, such as Earnest deposit (one month rental fee) as booking fee and Security deposit (two months rental fee).

 

 

Introducing Speedsign – Get things done faster and easier

Speedsign is an online platform that allows you to sign the tenancy agreement, the frequently asked questions about Speedsign can be found here.

 

By using Speedsign, there are several benefits as compared to the conventional way of agreement stamping.

 

 

COMPARISON:

Speedsign

Benefits:

  •  No deposit needed
  • zero lawyer fee
  • Simple and standard terms and Conditions
  • faster renting process

Considerations:

  •  No one to explain or advice Regarding the terms and Conditions

 

Lawyer tenancy agreement

Benefits:

  • Tenant and landlord can get professional advice regarding their terms and conditions writing
  • Agreement is written & revised by professional

Considerations:Penyewa

  • Tenants are required to pay deposits
  • Need to go several places to get the agreement done

Speedsign is legal and the signed tenancy agreement legal and the duty stamped copy will be admissible in court under Section 7 of Electronic Commerce Act 2006 and Section 62(2) of Digital Signature Act 1997.

 

More information about Speedsign

Tenants will be charged RM399+6%SST for one year lease agreement (inclusive of stamp duty).

 

You should consider your options whether you should use Speedsign or lawyer tenancy agreement. Speedsign is totally free for landlord to create the agreement. Tenant will pay RM399 for 1 year. The fee is inclusive of stamping fee.

 

On top of that, since everything of your renting process can be done by using Speedsign app, there is no leg work required. If you are having multiple properties to manage, everything can be done within your palm and you don’t have to hire anyone to do that.

 

For more information about Speedsign, you can read it here. Download Speedsign and create your agreement immediately at http://getspeedsign.speedhome.com.

 

Any questions - feel free to email us at hello@speedhome.com.

 

*** Currently it is only available for residential units ***

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