As we all know, rental properties are a profitable source of income. However, there is much more at play in the background.
Generally, landlords are more than just rent collectors. They are also often negotiators, salespeople, repairmen, and conflict solvers. Similarly, tenants also have their own sets of responsibilities and duties that they have to commit to throughout the term of their tenancy.
Although not commonly used in Malaysia, the landlord-tenant law, also known as a tenancy agreement, aims to serve as a blueprint for the interactions, rights, and obligations of both parties. Though it may vary slightly for different situations, there are some general responsibilities and rights that every landlord and tenant must adhere to.
What are the rights and responsibilities of a landlord?
1. Screening prospective tenants
Rental properties are a profitable business given that the landlords understand the importance of thoroughly screening tenant profiles. Skipping this process can potentially cause problems for yourself and your rental property in the future, such as late rental payments, expensive makeovers, and even evictions.
No doubt, taking on any tenant especially when your property has been vacant for some time can be really tempting. Nonetheless, waiting for a tenant which you can trust will save you so much headache.
As landlords, it is your right and responsibility to understand the kind of tenants you are bringing into your property. Finding the right tenants can be tricky at times since a majority of tenant applications tend to look good on paper. However, there is still much that you do not know about them. Plus, it is also risky to fully trust their words.
Though there are no guarantees that screening a tenant’s profile will ensure the perfect tenant is selected. But, at least, you would be able to validate information shared on their applications. It will give you a better idea of the prospective tenant’s character and behaviour. In short, having a proper tenant screening system can prevent unnecessary damages to the business.
You can always read up more on a landlord’s comprehensive guide to choosing tenants.
2. Make place habitable
The warranty of habitability is essentially the promise of landlords to make certain the rental property is safe and livable at all times. The term ‘habitable’ indicates that the rental unit must be fit to live in, free from defects or hazards, and is in compliance with all state and local health and building codes.
Typically, if a business’s intention is to attract customers to get repeat purchases, then it is really crucial to ensure the product is well prepared, helpful, and fairly priced. Hence, landlords should prioritise that the property is well-maintained, secure, and sufficiently comfortable for the would-be tenants.
Are you unsure whether your rental property is considered habitable? Well, here is what you need to know.
- Comply with all state and local health and building codes. Remember to get the relevant approvals before making any improvement works to your property. Also, do not neglect regular servicing of your fire extinguisher, detector, and fire alarm.
- Make sure the structural components of your rental property are safe.
- Provide basic necessities such as electric, water supply, gas, and etc.
- Attend to any requested repairs in a timely manner.
- Ensure that the living conditions are peaceful and hazard-free.
- Make certain that the property is pest-free.
3. Do not take maintenance of the property lightly
A responsible landlord should be willing to address rental property maintenance. Not addressing maintenance issues can quickly lead to bigger and more costly unavoidable fixes. This can set a landlord back by a substantial amount for repairs.
For example, a simple pipe leak that goes unfixed could quickly become a health issue involving mouldy walls and damaged furniture. If the landlord had been willing to spend an easy $20 – $30 to fix the leak, he could have averted a major makeover that easily cost $400 – $500. Hence, it is really important to have open communication with the tenant on the issues going on within the property.
Ideally, a good landlord-tenant relationship is cooperative. Maintenance repairs can be inconvenient for a tenant, but if the landlord is trusted to be respectful of their time, tenants will often be willing to accommodate for repairs. Staying on top of maintenance is also an indicator to the tenant, the property condition is expected to be returned.
A well-maintained rental property is always good to attract an existing tenant to renew their lease agreement. This reduces the hassle and marketing cost required to get new tenants. Conversely, a property in good condition will much more likely attract better quality renters, ensuring your property is well maintained in your absence.
If you need help planning for regular maintenance, do read up on the General Home Maintenance Guide for Homeowners.
Nonetheless, if the maintenance repairs are not addressed in a timely manner, the renters are allowed to hire a third party or make the repairs themselves. However, the cost of repairs shall be reimbursed by the landlords or deducted from the monthly rent.
4. Effectively respond to tenant’s requests and complaints
Tenant complaints are an unavoidable part of being a landlord. Even so, most tenants are reasonable and have simple needs. They just want to know that their landlord is there for them and will address any issues in a timely manner. Furthermore, if you, the landlord, treat your tenant rightly, they might just return the favour. As a saying goes, treat others the way you want to be treated.
While it is not about making friends with the tenant, it is equally important to establish a good understanding and be reachable by the tenants. Effectively addressing issues is essential not only for keeping your tenants happy and safe but also for protecting yourself from any possible lawsuits as well as ensuring your property’s condition in the long run.
Always keep in mind to be professional in all your interactions and adjust your response depending on the type of request or complaint. Having interpersonal skills are a great advantage as you will need to be respectful and understanding of the tenant’s issue. Even when you doubt the validity of their complaints, you should never dismiss their concerns. Instead, show your sincerity and make them feel that their concerns are being heard.
It is good to follow up with the renters after arranging the repairs. Let them know when a complaint has been resolved or closed out. If it is unable to be resolved immediately, be sure to inform the tenants that you are doing your best to have it settled and update them on the progress.
You’d be surprised how managing expectations can help to keep the situation in order.
5. Respect the tenant’s privacy
All renters have the right to privacy. In general, landlords are legally allowed to enter the rental property, under specific circumstances, usually with consent from the renters. It is also respectful to provide at least a 24-hour notice before showing up at the tenant’s door.
Landlords should know the limit between being updated about the rental property and giving the tenant their privacy. Oftentimes, some landlords check up on their renters without even having any specific reason to do so. They also have the bad habit of showing up unannounced. Though there is no ill will in doing so, these behaviours are incredibly intrusive and, in most cases, illegal.
Remember, the rental property is your tenant’s home. Try putting yourself in their shoes. Just imagine how you would feel if someone entered your safe space without your permission?
Due to the importance placed on tenant privacy rights, landlords can lawfully enter the rental property given the following circumstances. Typically, they must also provide the tenants with at least a 24-hour notice and receive permission before entering.
- To conduct repairs.
- To conduct a formal inspection.
- In the event of a emergency.
- For viewing purposes of prospective renters/buyers, usually occurs when it is near the end of the rental lease.
At the same time, landlords should always carry themselves professionally in terms of the way they act and speak. Occasionally, you might call up your tenant when they are at work for an urgent matter. However, you should never interfere with their job and even life by discussing their situation with those around them. This might cause false rumours to spread, and may result in a harassment lawsuit.
6. Build relationships
It is always good to maintain a healthy landlord-tenant relationship. As mentioned, do not be radio silent to your renters. Not addressing their concerns and/or answering their inquiries will cause them to be frustrated and distressed. It is no surprise they will grow distrusting of you as a reliable landlord.
Contrarily, you might want to be careful not to establish too close of a relationship with your tenants. Having a well-respected relationship helps to ensure smooth and timely transactions. However, if you are too close to tenants, they might feel that it is alright to overstep their boundaries and start paying rent a little late. Having too close a relationship with tenants can also make it difficult to increase rent, despite the increase being in line with the current rental rates.
7. Be responsible to the neighbours
Typically, a landlord can be held liable for a tenant that has brought about interference in a neighbour’s life. For instance, noise issues, illegal business, criminal activity, and so on.
Therefore, it is recommended for the landlord to find out or observe beforehand the daily routine of the neighbourhood. Know when are the quiet hours and bring it to your tenant’s attention in the lease. By doing so, it allows you to have the means to resolve the issue with your tenant.
This is one of the reasons why tenant filtering is important. Having a screening process enables you to determine whether the prospective tenant has a history of partying late at night, or was previously involved in any illegal activities, and etc. Trust me, the last thing you want as a landlord is to be at the local police station for a crime on your property.
With that said, it is also good to establish relationships with the neighbours. Offer them your contact information. It will be useful since they can help you to keep an eye on your renters. They are also able to warn you of any issues before finally filing a complaint to the authorities.
What are the rights and responsibilities of a tenant?
1. Pay your rent and bills on time
Tenants have the obligation to pay monthly rentals at the agreed time. Late payments or failing to pay can lead to eviction from the property.
With the current pandemic, many are facing financial insecurities. Thus, if you are unable to make the monthly rental payments on time, try to discuss and find a solution with your landlord. Be mindful that for certain landlords, the monthly rentals may be their sole source of income.
As for the monthly utility bills, it can either be the tenant’s or the landlord’s responsibility. Commonly, tenants are the ones required to pay the utility bills in respect of water, electricity, gas, and other miscellaneous costs that are consumed on the leased premises.
Typically, the tenants will be responsible for these monthly utility payments,
- Electricity; TNB bills
- Water supply; Air Selangor
- Sewerage system; Indah Water
- Gas supply (if your unit comes with built in gas system); Gas Malaysia
No doubt, there will be tenants that will leave the bills unpaid until the supply is cut off or worst, vanish without a word. In such circumstances, the landlord will have no choice but to pay the total amount outstanding.
Having said that, landlords can also request for the utility bills to be registered under the tenants’ names at the start of the tenancy. This means that if the bills are left unpaid, it will no longer be the issue of the landlord. Instead, the tenant or his/her next of kin will be the ones chased by the authorities.
2. Commit to maintaining the property
Tenants have a commitment to look after and maintain the rental property. Remember, the property is not yours but your landlord’s. Hence, it is only right for you to maintain it and return it as you first received it.
Though it is not necessary to spring clean the property every now and then, nonetheless, the basics such as sweeping, mopping the floor, washing the bathrooms, taking out the trash, and cleaning the windows should be a given. If you have a toddler around, then it is also better to be mindful of the children scribbling on the walls.
If your kids do end up scribbling on the walls despite your best effort to prevent them from doing so, all you need to do is reach out to your landlord for the color code and to do a fresh coat of paint.
For units that come with electrical appliances and furniture, ensure that it is well taken care of and is in the same condition as they were the day you (the tenant) moved in. Familiarise yourself with the appliances or contact your agent/landlord for guidance to avoid spoiling anything unintentionally.
I understand furniture do wear out over time but if you spoil the furniture, you ought to get them repaired or replaced. If you break a bed frame, then you should replace it with a functioning bed frame.
If you choose to not maintain the rental property, then do not be surprised when you are charged for the repair bills. Especially if the defects are due to your fault or negligence.
A quick tip when you first move in, take a record of all the furniture and fixture conditions and have it shared publicly with the landlord. Having a record of all the furniture and fixture conditions at the time of moving will be helpful if the landlord is unfairly charging you for repair costs.
3. Have open communication with the landlord
It is essential for tenants to have open communication with their landlords. They should be notified of any necessary repairs or structural problems as soon as possible.
Typically, the cost of repairs for switching out a faulty light bulb or washing the air-conditioner filters, and so on are borne by the tenants. Whereas repairs that are related to the building structure, plumbing system, fixed electrical appliances, and furniture are usually addressed and paid for by the landlord.
Nevertheless, there are also situations where tenants will have to bear the cost of repair by themselves if it is proven to be their fault. For instance, a clogged pipe caused by the tenant’s habit of throwing food waste down the drainage. Therefore, it is crucial to inform your landlords of any defects within the shortest possible time. By dragging it out, the landlord may then put the blame on you and force you to pay for the repair works instead.
Besides, there are also cases where the landlord refuses to attend to any of your complaints. During such circumstances, you may make the repairs yourself and deduct the costs from your next rent payment. Another option is to contact your agent or the local building inspector, who can order the landlord to make repairs. Last but not least, you can always sue your landlord for a partial refund of past rent or opt to move out of the rental property.
However, do take note that if you terminate a rental contract agreement early, you may be liable for the full rental payments due for the remaining term of the contract.
Overall, my advice is always to communicate with your landlord before taking any action. Give them a chance to make repairs in a timely manner.
4. Adhere with the laws and agreements
There are laws and agreements in which a tenant will have to follow during the term of the tenancy. For instance, a tenant has no right to sublet the rental property without the consent in writing of the landlord. If the landlord has allowed the tenant to sublet the property, then it should be stated clearly in the tenancy agreement.
Moreover, as a tenant, you should always consult your agent or landlord before making any changes to the unit. Be it repainting the walls with another colour or changing the furniture. If you plan to renovate the property, such as adding a partition wall, hacking, or even drilling into walls. It is all the more crucial to gain their approval.
Do not think that you are doing your landlord a favour by renovating the property or repainting it. They might not be as appreciative since these are major works and may even involve the consent of local authorities.
This also goes without saying, tenants should never use the rental property for any illegal activities or businesses. Such actions do not just put themselves in danger but will also cause the landlords to be inflicted. According to legal authorities, a landlord can be prosecuted for illegal activities that took place on their property regardless of whether they have any knowledge about it.
5. Allow entry for maintenance works, viewings and during emergencies
Although tenants have their right to privacy, there are also circumstances where a landlord can legally enter the premises. In such situations, the renters must give their permission for the landlord to enter.
Nonetheless, you can always negotiate with your landlord if the arranged time clashes with your schedule.
Typically when it is nearing the end of the lease, landlords will bring in prospective tenants to the rental property for viewing. Try to make an effort in keeping the place clean and tidy during the showing. Furthermore, you will also need to give back the property and its interiors in good condition. In short, you are required to restore the property to its original condition when the lease ends.
Final Words
It is common for landlords or agents to offer an existing tenancy agreement template. Nonetheless, do not be afraid to add any additional clause. Make sure all the things you have discussed with either your tenant or landlord are written in black and white. Never rely on just verbal agreements.
It is also advisable to thoroughly check the property before signing the agreement as you will be accepting the property as it is. This means that if you miss out on a faulty appliance now, then you might most probably be charged for it later.
Essentially, a tenancy agreement is important in ensuring that both the landlord and tenant understand their responsibilities and that both parties have their rights protected.
Typically, landlords will give a grace period of 2 weeks – 1 month for tenants to report any defect or faulty appliances. Past that point, any need to change out lightbulbs or repair a door will fall under the responsibility of the tenant.
I hope this article has been helpful to you, both the landlord and tenant.
Until the next article, take care.
