So you’ve just viewed a property or room that seems to tick all your boxes. But before you hand over the required deposits, take a deep breath and get more information first. Asking the right questions can make the difference between a smooth, enjoyable renting experience and a frustrating, confusing one.
Before searching for a rental property, you need to know what you’re looking for. Once you’ve locked down on what’s important to you, off you go, on a fact-finding mission. The more informed you are about the lease, terms, and the landlord, the better equipped you’ll be to make an informed decision and avoid potential pitfalls.
iProperty spoke to an expert rental agent for insights into how tenants can align their needs with the available options. During the research stage, Sara Low, Group Leader of PropNex Realty Malaysia, suggests asking agents for actual unit photos before arranging viewing appointments. That way, you can filter what you like and avoid wasting time arranging appointments.
She added, “However, sometimes it might be difficult to see the unit’s condition or the layout from the photos itself. Upon viewing, the renter can know whether it’s what they want or not. So, it’s good to go through videos of the listing or ask agents for videos of the actual unit or one with the same layout. Or maybe view the virtual 360° tour of the unit.”
“Also, find agents who advertise the most listings. Usually, they are the ones who focus on a particular property, and that can save you time from dealing with multiple agents. And they have more choices for you when choosing your right home.”
To better understand renters, Sara would usually provide a templated form for renters to fill in their requirements or needs. That way, it’s easier for the property agent to narrow down and propose suitable residences.
Important Considerations Before Renting
1. Availability of the Property or Room
When will the property or room be available? This helps you to first decide whether you should even consider the unit. If there’s a mismatch in the moving-in date or month, you can try negotiating with the real estate agent or landlord.
What is the minimum and maximum duration for the rental? If the availability matches your need, then find out the minimum tenancy period, and whether the landlord is open to extending it upon expiry.
Sara highlighted a situation where a tenant faced an issue from not asking the right questions. “The tenant didn’t ask about the owner’s intent to sell. After renting the house, agents and the owner asked to arrange viewing appointments, which is quite frustrating for the tenant.”
To avoid such a situation where disagreements or conflicts can occur, Sara usually creates a chat group with the landlord and renter after the unit handover. “This is to ensure that everyone is in the loop, to avoid miscommunications. We try to understand issues and disputes from both sides, and solve it in a emphatic way while referring to the tenancy agreement,” Sara explained.
2. Deposits
How much is the rent and required deposits? A rental deposit is an advance payment that a tenant must make to a landlord before moving into the property or room.
For example, if it’s a 2+2+1 deposit, it means:
2 months’ rent (Security Deposit)
+ 1 month’s rent (Utility Deposit)
+ 1 month’s rent (First month’s rent paid in advance before the rental period begins)
So if the rent is RM1,200 per month. The initial sum that a renter needs to pay is RM2,400 + RM1,200 + RM1,200 = RM4,800.
The security deposit serves as a guarantee for any conditions specified in the tenancy agreement. This deposit can be used to pay for damages, cleaning, keycard replacements, or even forfeited entirely, if the tenant leaves before the end of the tenancy or leaves the place in shambles.
If there aren’t any issues, damages or outstanding utility bills, the landlord is required to return the full security deposit and utility deposit to the tenant at the end of the tenancy agreement.
Tips to reduce rent:
- Find out the market rate to renegotiate
- Compare unit to other units in the building
- Sign a longer lease
- Ask for half a month, instead of a month for Utility Deposit
3. Moving In
When can I move in? Sometimes, the landlord allows the tenant to move in earlier. But be sure to check whether there’ll be extra charges for moving in earlier. It’s best not to assume!
Before you sign the rental agreement, check the inventory included in the rental agreement, and take pictures and/or videos of all the pieces of furniture listed there.
You can also take photos and/or videos of the entire property or room along with all the landlord’s assets in it. These will come in handy when there are disputes over the security deposit and damaged items.
4. Monthly Rental
When is the monthly rental due, and what’s the method of payment? It is standard practice for the rental agreement to stipulate the exact date the monthly rental should be paid.
Tenants can negotiate to pay at a slightly later date every month, and also confirm payment mode, be it online transfer, cheque, or so on. All these should be included in the rental agreement.
What if I pay late? Keep the communications open, and ask the landlord for extensions or a revised payment structure if you’re facing financial difficulties. Legally, it is deemed a breach of the agreement even if the payment is late just once. Some rental agreements could include penalties or interest charges for late payments. Again, discuss your situation with the landlord.
If all negotiations fail, then the landlord may choose to send a letter of demand to the tenant. If the tenant doesn’t pay by a particular date, the landlord reserves the right to go after the outstanding amount via legal means.
Will the rent increase? If you found a place that you’d want to live in for the long haul, ask the landlord how often the rent will be increased and if it is negotiable.
5. Utilities
Are utilities included in the rent? The utility deposit is usually either half a month or a month’s rent. This amount is used to cover any outstanding utility bills at the end of the tenancy, like electricity and water.
If you are renting an entire unit, utilities are usually not part of the monthly rent and you will need to be responsible for the utility charges. However, if you are renting a room, you should ask whether the utility is included in your rent. In some cases, the landlord might subdivide the electricity metre for individual rooms. In such situations, you may be responsible for your own electricity bill.
In some cases, the landlord may request the tenant to register the electricity, water supply and sewerage services under their name, as it removes the liability of late payment and outstanding utility bills from the landlord.
What about the sewerage bill (IWK)? Some feel that the landlord should bear the sewerage bill (IWK), as it is charged to every property at a fixed rate. It is treated like how it is for ‘cukai pintu’ (assessment) and ‘cukai tanah’ (quit rent). Sewerage, unlike water and electricity, is not a consumption. It’s a service to upkeep the property, which the landlord is responsible for.
On the other hand, some landlords feel that the tenant should pay as IWK is servicing the tenant’s needs. Again, the landlord and tenant should discuss and decide who will pay for it.
6. Maintenance
Who will pay for damages? It is generally the landlord’s responsibility to fix and bear the cost of repairs. Repairs needed to make the property safe for human occupation are also the responsibility of the property owner, such as repairing door locks or ensuring the toilet flushes.
However, if damages are caused by the tenant, then it’s the tenant’s responsibility to fix them accordingly. This could involve the fittings, wiring, faulty appliances, furniture, and so on.
Daily maintenance such as cleaning stained flooring and carpets and minor repairs like fused light bulbs, fall under the responsibility of the tenant. If the plumbing leaks, it is usually the landlord’s responsibility to resolve it. However, the landlord might request you to sort out the issue if the cost is small.
What about the maintenance of air-conds? Again, it would depend on the agreement between the landlord and tenant. Some tenants would just take it upon themselves to service it, and some landlords would cover it as part of a “fully-furnished” rental.
Here are some additional questions you can ask your landlord:
- What if the furniture is damaged due to wear and tear?
- What if the wall leaks and becomes mouldy?
- If the plumbing leaks, will you fix it for me?
- How often do I need to service the air-conditioners?
- If I break the windows or doors, what should I do?
- If the appliances provided stop working properly, should I let you know?
According to Sara, the most common concern that renters have is on the wear and tear of items, and who will bear the responsibility and repair cost.
7. Special Clauses
Is parking available and is it free? This is more applicable to high-rise buildings. It’s best to confirm with the landlord the number of parking lots, and if there’s a discrepancy in the agreed terms, it could be grounds for terminating the tenancy agreement, as it’s a misrepresentation of facts.
Is there a pet policy? Some landlords prefer not to rent to pet owners, and some developments aren’t pet-friendly. Landlords might also ask for a pet deposit to cover potential damages caused by the tenant’s pet.
Can I redecorate, repaint or do minor renovations? It’s important to ask the landlord if these changes are permitted.
Is subletting permitted? If you’re renting an entire unit and considering renting out a room to someone else, be sure to ask your landlord about their policy on subletting. Some landlords don’t mind it, while others strictly forbid it.
Communication Is Key
The key to a successful renting experience lies in being well-informed. Don’t be afraid to clarify any doubts or voice your concerns. So, ask away, gather your facts, and make informed decisions! A healthy landlord-tenant relationship thrives on transparency and mutual understanding.
Ultimately, it all depends on what is outlined in the tenancy agreement or agreed beforehand. Here’s a recap of what should be outlined in a rental agreement:
- Monthly rental fee
- Duration of rental agreement
- Penalties for late payments
- Terms and conditions around changes to rental cost
- Terms and conditions around duty of care
- How costs are attributed for repairs
- Terms and conditions on return of deposit(s)
- Terms and conditions on subletting/additional tenants
- Utility bill and property tax obligations
- Special clauses (pets, smoking, access to amenities)
Common Mistakes Renters Make
Sara shared these 5 key mistakes, so that you can avoid making them!
1. Verification
You did not verify that the person renting is the landlord and not a tenant subletting the unit. You can get the owner’s name by checking with the management office or requesting the water bill. Make sure that the person signing the letter of offer and tenancy agreement is the rightful person.
2. Express Condition
During negotiations and signing the letter of offer, you did not clearly indicate everything that has been promised by the owner/landlord in the “Express Condition” section. Failure to do this can result in many arguments if the owner/landlord does not fulfil what was promised.
3. Repairs
You did not list who’s responsible (owner vs tenant) for which maintenance and repairs.
4. Bank Account
You did not check whether the bank account tallies with the one in the letter of offer. Unknowingly, you might’ve banked the deposit into the agent’s personal account or sole proprietor account. Be sure to transfer any monies into the property agency’s bank account that’s written in the letter of offer.
5. Tenancy Agreement
You did not ask for a draft of the tenancy agreement to check the clauses before signing the letter of offer.
Top 6 Questions Renters Neglect To Ask Property Agents/Landlords
1. Can you please show/share your agent REN tag? It’s important that the agent is who they say they are!
2. Do the owners plan to sell in the short term? This is crucial if you want to rent for a longer period and don’t want to deal with viewing appointments.
3. What is included in the property? Sometimes unit are partially furnished during viewing, and the owner promises a fully furnished unit, and the furnishing might not be up to expectations.
4. How much is the total amount for deposits? Do the renters need to open a TNB electricity account (as that will lead to additional deposit cost)?
5. Which level is the parking lot? You might have a specific preference over which floor the parking lot is.
6. Are these photos of the actual unit? Or is this unit shown online still available? Clarifying these will help the renter avoid wasting time viewing the unit.
Burgeoning Trend: Short-Term Stays
Sara pointed out that there are a lot of enquiries for two to three months’ stay. She shared, “Some are travelling foreigners who’re here for a few months. Some are locals who want to rent during their 3 months’ internship. There are also some who are renovating their current house and need a place for a few months.”
She also observed that rent on Airbnb is overpriced for a short two or three months’ period.
“I foresee that this could be a strategy for owners who want higher rental yield. They could rent out for shorter stays but at a higher rental rate,” she said.