Tackling tenant-landlord issues and leasehold renewal cost calculation

Compiled by Tharmini Kenas tharmini@thestar.com.my

Ask Me Anything is a platform for readers to pose property-related questions. If you have any enquiries, key in your questions at bit.ly/AskMeAnythingProperty.

This mppty_07032018_datuk_andy_low_hann_yong_cokwong_1-683x1024_1onth, Low & Partners managing partner Datuk Andy Low Hann Yong deals with readers’ questions regarding the age-old issue of tenants and landlords and the cost calculation for the renewal of property leasehold.

Q1 Should the house-owners or landlords show proof of the utility bills before requiring the tenants to pay for the monthly utility?

A1: Most tenancy agreements impose an obligation for the tenant to punctually pay all utility charges such as electricity and water bill. Tenants can usually find the bill on the property itself. In cases where the landlord is in possession of the bill, it is reasonable for the landlord to show proof of the bills before expecting the tenant to pay up.

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Q2 If there is any major renovation going on in the residence, should the landlord bear the responsibility of providing an alternative place for the tenant to stay?

A2: During the tenure of the tenancy, the landlord should allow the tenant to peacefully hold and enjoy the rented premises without any interruption. No renovation works by the landlord should be allowed without the consent of the tenant, except for repairs.

Q3 If it is a serviced suite, should the landlord expect the tenant to be around and help out during the cleaning?

A3: Whether or not the tenant’s presence is required during the cleaning operation depends on the terms of the cleaning agreement or service agreement done between the landlord and the tenant.

Q4 I would like to know how to calculate the cost to renew my leasehold property as I plan to resell it. My house is in Shah Alam and currently has 39 years left on the lease.

A4: If you intend to extend the lease of your property for the purpose of selling it subsequently, you need to pay the premium for the lease extension. Currently, the Selangor government is giving a 30% rebate on the rate of premium under this option.

The formula for the calculation of the rate of premium is as follows: Premium=0.25 x 0.01 x Market Value of land (sq ft) x number of years to renew x land area (sq ft)

Assuming you intend to extend the lease for a 2,000-sq-ft residential property in Shah Alam with 39 years remaining on the lease, and assuming your property is valued at RM80 per sq ft by the authorities, the premium is 0.25 X 0.01 X 80 X 60 X 2,000 = RM24,000. Leases are usually renewed for 99 years. In your case, you need only pay for an extension of 60 years (99-39 years). After deducting the 30% rebate, the premium payable will be RM16,800.

To Read More: Whether to purchase freehold or leasehold properties?

To Read More: How to extend your lease for leasehold properties

To Read More: Ask Me Anything: Calculating renewal cost of property leasehold

Disclaimer: All data and information provided are for informational purposes only. All information is provided on an as-is basis. All users are strongly encouraged to seek professional advice before relying on any data and/or information provided.



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