Why Do You Need a Tenancy Agreement?

Are you renting out your property or moving into a new home in Seremban? Whether you're a landlord or a tenant, having a properly drafted tenancy agreement is essential. At Chan & Chia, we help property owners and tenants across Negeri Sembilan safeguard their rights with clear, enforceable tenancy agreements. In Malaysia, verbal agreements or informal arrangements often lead to disputes. A written tenancy agreement protects both parties and outlines their rights and responsibilities under the law.

What Is a Tenancy Agreement?

A tenancy agreement is a legally binding contract between a landlord and a tenant that sets out the terms and conditions of the tenancy. It covers details such as rental amount, duration, deposit, maintenance responsibilities, termination clauses, and more.

Common terms in a tenancy agreement

Property address and description
Monthly rent and due date
Security deposit and utility deposit
Tenancy period (fixed-term or month-to-month)
Landlord and tenant obligations
Termination and renewal conditions
Inventory list (if furnished)

Why You Should Never Rent Without a Written Agreement

Here are some key reasons why having a written tenancy agreement is crucial:

1. Avoid Legal Disputes

Without a formal agreement, misunderstandings about rental terms, deposits, or responsibilities can lead to serious conflicts. A tenancy agreement provides written proof of agreed terms.

2. Protect Your Property and Rights

Landlords can set clear rules on property usage, maintenance, and conduct. Tenants benefit from knowing their rights, including privacy, repair requests, and notice periods.

3. Comply with Malaysian Tenancy Laws

While there’s no central Tenancy Act yet, the Contracts Act 1950 and Specific Relief Act 1950 govern tenancies. A written agreement ensures enforceability under Malaysian law.

4. Ensure Smooth Rent Collection and Deposits

The agreement formalises rent payment schedules and secures deposits, reducing risks of delayed payments or disputes at the end of the tenancy.

5. Support for Eviction or Legal Action

In case of non-payment or breach of terms, a tenancy agreement strengthens your position in court or during negotiation.

Do You Need a Lawyer for a Tenancy Agreement?

It is not mandatory for parties to appoint a lawyer to draft a tenancy agreement. Often property agents will assist parties with drafting the tenancy agreement however, it is worth noting that only lawyers can charge a fee for drafting legal agreements.

There is no such thing as a standard tenancy agreement and the terms involved will vary from case to case depending on the facts and complexity of the arrangement between the parties.

In such situations, a legal professional can safeguard your interests by ensuring that all terms contemplated by the parties are clearly included in the agreement.

Conclusion

A properly drafted tenancy agreement is more than just a formality—it’s a vital legal safeguard for both landlords and tenants. It helps prevent disputes, protects your property or rental rights, and ensures clarity on responsibilities from the start. Whether you’re renting a home, shop lot, or office in Seremban, having a clear and enforceable agreement is key to peace of mind.

At Chan & Chia, we offer tailored legal solutions for all your property and tenancy needs. Contact us today to speak with an experienced tenancy agreement lawyer in Seremban.

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For over 50 years in the industry, Chan & Chia has consistently been relied on and trusted by generations. We blend the strength of tradition with the demands of the modern legal landscape. Our team of experienced professionals remain firmly rooted in the values that shaped our founding: integrity, trust, and service.

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