KUALA LUMPUR – The Bank Negara cut the overnight policy rate (OPR) by 25 basic points again, which is not expected to stimulate real estate sales. SPEEDHOME believes that the employment prospects are not optimistic, and the demand within the housing rental market has continued to increase. The government should pass the Tenancy Act as soon as possible to improve the market mechanism in order to reduce conflict between landlords and tenants.
SPEEDHOME’s CEO Wong Whei Meng said the epidemic of COVID-19 in other foreign countries has not yet eased, and the housing market is expected to continue to face headwinds.
“Right of residence is the most basic demand of the people. If people are temporarily unable to buy, renting a house will become their first choice. In fact, this is also reflected in the performance of the rental platform SPEEDHOME, after MCO, the inquiries from the tenants have increased rapidly.
“Basically, there is no Tenancy Act in the Malaysian property rental market. People only rely on a tenancy agreement to show the responsibilities and obligations of both parties. If there is a dispute between the two parties, they must face a lengthy legal procedure.
“From time to time, bad tenants destroy the house and this results in increases in the rental cost of the homeowner, which in turn leads the tenant to face high deposits and various rental conditions,” he added.
3 main concerns for the landlord
SPEEDHOME conducted a survey of its homeowners and found three main worries of homeowners especially during this challenging period.
- Don’t pay rent/utility fees on time
Shortly after moving in, many tenants began to have the habit of delaying rent payment, ignoring the homeowner’s message and phone call, and even disappeared after two months of deposit deduction. Faced with this type of tenant, the landlord needs to get a court order to evict the tenant, which is very difficult.
If Malaysia has a residential property rental arbitration institution similar to the consumer arbitration tribunal, it will greatly improve the distrust between the two parties, and the homeowner is more confident to rent the house.
- The house is destroyed
The homeowner worries that the house whose loan has not been paid off yet will be damaged by the tenant, so he would rather not decorate the house for rent. The problem is that vacant periods for undecorated houses will be longer than for houses that are furnished. It is recommended that homeowners who are worried about the destruction of the house purchase insurance for the house furniture to protect their property.
- Tenants keep on contacting the owner
For some tenants, as long as there are any minor problems in the home, such as faulty light bulbs, the door handle, or the wall is defective, the tenant will always contact the owner and ask the owner to repair it. In fact, if there is an agreement between the homeowner and the tenant before moving in, the tenant must maintain the condition of the leased property.
Before relocating, the tenant must carefully check the condition of the house. If it is not an emergency situation, it should avoid disturbing the owner. Of course, if there are structural problems in the home in the future, such as water leaks from the upper-level units, water pipe problems, etc., the owner is obliged to help the tenant solve the problem.