Hi Raymond,

I have one condo unit and have intention to rent it. Can I make the tenancy agreement to be valid anytime or we should renew it yearly. What are the consequences.

Suggestion also on the best agency to prepare the agreement and TOTAL COST from A to Z process

TQ very much.

If you wish to keep an open end provision, then, you would need
to provide a perpetual option to renew clause.

In my understanding, whether such effect can be really put to task
have to be answered by the LHDN.

Can this be stamp duty avoidance at its root, maybe, there is a way
to let the option be open to the tenant instead.

In my opinion, if the tenant wishes to continue to rent, he must notify
the landlord. There is no perpetual tenancy under the land law.

Thank you Raymond fro your prompt reply. So there is no such perpetual tenant agreement which the tenant should follow. We as a owner have to ask the tenant whether they want to continue or not.

And what about the charges? Should we start back to A process where we have to pay commission to the agent to prepare new tenant agreement. So far my agent charge me 1.25 months . New agreement means I have to pay another 1.25 month. Isn't following the market price?

Need your clarification on this matters.

TQ very much.

Really headache..

How to calculate stamping fee for this tenancy agreement:-

(a) Rental RM1,507.00 per month from 1.9.2009 - 31.8.2011 and RM1,687.80 per month from 1.9.2011 - 31.8.2012.

(b) Rental RM51,387.40 per month from 1.9.2009 - 31.8.2011 and RM56,796.60 per month from 1.9.2011 to 31.8.2012

Pls solve my problem because I have to stamp both of this Agreements tomorrow (i.e 4.8.2010)..

Formula stamp duty is :-

Rental 1 year x 12 months - 2400/250
Rental 2 years x 24 months - 4800/250

Period for 3 years also calculated in 2 years,same rate.

Usually there is an option to renew clause in the tenancy agreement.

Is it stated the rate for charging renewal fees at your described rate in the tenancy agreement ?

If not, then, you don't have to pay for the same rate for the renewal since the renewal is
between the landlord and tenant and not dependant on re-negotiation with the agent again upon
its completion date.

In fact, this should have been the direction since renewal is not subject to intervention by
any third party's approval.


As for the stamping duty for tenancy agreement ending in a total of 12 months each,
the rental x 12 months - RM2,400 divided by 250 is applied.

The first RM200 monthly rental is exempted from stamp duty, hence RM200 x 12 months = RM2,400.
For every RM250, RM1 will be assessed towards stamp duty.

Unless the rental remains the same for 2 years, the above formula applies.