Tenancy Agreement for Condos (Part 2)

In part 1, the first instalment of my tenancy agreement, I outlined the clauses concerning the tenant’s obligations, deposits, early termination and potential defaults in rental payments — and relayed my misgivings about the ambiguity of a few of the significant clauses.

Let’s move on to the next chapter in our exploration of the landlord’s obligations. We will consider the meaning of each covenant and offer our thoughts and musings on some elements.

Peruse the tenancy agreement for the maintenance checklist attached at the end. The schedule itemizes the repairing obligations of both parties and what needs to be done in preparation for the tenant’s departure. Don’t forget to review this crucial part for a satisfying end to your tenancy agreement.

Landlord’s Covenants

(1) To pay quit rent, assessment, taxes, service charges and other outgoings.

(2) To insure the premises against loss by fire.

(3) To allow the tenant quiet enjoyment of the premises without interruption from the landlord.

(4) To ensure that all electrical appliances are in good working order at the start of the tenancy.

(5) To maintain the main structure of the premises in good condition such as the roof, walls, floors, ceiling and plumbing system (electrical wiring and sanitary pipes). The tenant is responsible if the damage is due to the tenant’s misuse. (If the responsibility of this maintenance falls under the tenant’s covenants, then they will be responsible for taking on the financial burden of costs associated with it.) The landlord has to carry out repairs under his responsibility within 7 days or 1 day if the repairs are urgent. If the landlord fails to perform, the tenant can do it and claim the cost of repairs.

Note: In my agreement, the clause does not specifically say that the tenant can deduct the costs from the rental or terminate the tenancy. In the case of JR Lincks Educational Consultants Sdn Bhd V Goh & Sons Enterprise Sdn Bhd, the court ruled that the tenant had the right to withhold the rent if he/she had an actual claim for damages against the landlord. What if there is a clause that says that the tenant can offset the costs of repairs from the rent or hold back the rent? Would the tenant be entitled to do that? Read the views presented in the AskLegal article attached below.

(6) To pay all service/maintenance charges or other contributions to the Management Corporation.

(7) To install internet service. Charges and penalties are to be borne by the tenant.

Destruction or damage to premises

If the premises or part of it is damaged, making it unfit for occupation through no fault of the Tenant, the rent or a fair proportion, depending on the nature and extent of the damage, will be suspended until the premises can be fit for habitation and use. If the premises are not reinstated by the landlord within one month, either the landlord or the tenant may give the other notice to terminate the tenancy. The agreement will cease and be void from the date of occurrence of the destruction or damage but without loss of rights of either party against the other in respect of any antecedent breaches of the agreement.

No claims against the landlord

The landlord shall not be liable to the tenant in respect of the following:

(1) Any interruption in any of the common facilities due to repair or maintenance or damage or destruction by fire, water, etc. or any cause beyond the control of the landlord.

(2) Any damage, injury, or loss caused by leakage in the piping, wiring, and other systems in the condominium complex.

(3) Any damage or loss of the goods and chattels of the tenant as a result of theft, robbery or other destructive act committed by outsiders beyond the landlord’s control.

Option to renew

If the tenant wants to continue the tenancy for a further term, he has to give the landlord two months’ notice and provided that there have been no breaches, the landlord shall grant a further term as specified in the Schedule (e.g., if the tenancy is one year with an option to renew for another year) to a rent mutually agreed upon and all the deposits will be adjusted accordingly and subject to the same terms and conditions save and except for this option to renew clause.

Our tenancy was renewed easily, thanks to a renewal letter that granted our request to remain on the same terms and conditions—with the exception of the option to renew clause. Legal counsel advised that the letter was sufficient, but it needs to be stamped for it to be fully valid.

Note: Landlords, if you do not want to extend the agreement, make sure to include a clause explicitly stating the exception to the option for renewal. Otherwise, you may be locked in for another term. Please refer to the attached Star article for more details.

Interest on late payment of rent

The tenant shall pay interest on demand to the landlord on any monies due in accordance with the provisions of the agreement or due upon judgment to the landlord until all outstanding debt, including interest, has been paid in full. The rate of interest shall be 10% per annum, and such interest shall accrue and be calculated on a daily basis.

Sale of premises subject to tenancy

The landlord undertakes and agrees that the sale shall not in any way infringe on the terms and conditions of the agreement. The tenant shall procure the purchaser to continue with the terms and conditions of the agreement without any interruption by the change in ownership. The tenant agrees to allow prospective purchasers to view the premises after prior arrangements have been made.

Costs of preparing the tenancy agreement

The tenant shall bear the cost of the tenancy agreement, including stamp duty. Typically, real estate agency firms offer a standard agreement free of charge as part of their service to their customers.

All costs and disbursements incurred by either party in enforcing his rights in the event of any breaches shall be borne by the other party. Both parties pay their own costs.

A tenancy agreement can be an intimidating document, filled with complex legal jargon that can easily confuse even the most astute reader. It’s essential to take the time to read the agreement thoroughly, ensuring that the clauses reflect your expectations and desires. Otherwise, you could find yourself lost in a sea of flowery language. Seek professional advice if you need it.

Click here for the maintenance checklist. Don’t forget to check this part of your agreement in the attachment. After signing, I realized that chemical cleaning of the air conditioners is on the list under my obligations. This is not a cheap exercise, and due to the design of the unit in our case, it cannot be done without cutting a big hole in the ceiling to reach and take down the indoor unit. We were given a standard agreement. This inclusion of chemical cleaning, I presume, was an oversight.

Link to articles:

(1) Star article: Be careful about option clauses | The Star

(2) 5 important clauses you need to look out for in a | AskLegal.my

(Feature photo by Scott Graham on Unsplash)