How Can Landlord Ending Periodic Tenancy?

As a landlord in Malaysia, you may find yourself in a situation where you need to end a periodic tenancy agreement.

This type of tenancy, also known as a month-to-month or rolling lease, can provide flexibility for both you and your tenant. However, there are specific legal requirements and procedures you must follow to terminate a periodic tenancy.

In this blog post, we'll explore the steps landlords in Malaysia can take to end a periodic tenancy, ensuring a smooth and lawful transition.

Understanding Periodic Tenancies in Malaysia

A periodic tenancy is a type of rental agreement where the tenancy continues on a month-to-month basis, rather than having a fixed end date.

This arrangement can be beneficial for both landlords and tenants, as it allows for greater flexibility and the ability to adjust the terms of the agreement as needed.

In Malaysia, periodic tenancies are governed by the Tenancy Act 1951 and the Contracts Act 1950.

These laws outline the rights and responsibilities of both landlords and tenants, including the procedures for terminating a periodic tenancy.

Reasons for Ending a Periodic Tenancy

As a landlord, you may have various reasons for wanting to end a periodic tenancy agreement.

Some common reasons include:

Desire to Occupy the Property: You may need to reclaim the property for your own use, such as moving in yourself or allowing a family member to occupy the premises.
Redevelopment or Renovation Plans: If you have plans to redevelop or renovate the property, you may need to end the tenancy to facilitate the work.
Dissatisfaction with the Tenant: In some cases, you may wish to terminate the tenancy due to issues with the tenant, such as non-payment of rent, property damage, or other breaches of the rental agreement.
Changing Market Conditions: If the rental market in your area has changed, you may want to end the current tenancy to adjust the rent or find a new tenant.

Regardless of the reason, it's crucial that you follow the proper legal procedures to terminate the periodic tenancy.

Steps for Ending a Periodic Tenancy in Malaysia

To end a periodic tenancy in Malaysia, landlords must follow these steps:

1. Provide Proper Notice

The first step in terminating a periodic tenancy is to provide the tenant with proper notice.

Under the Tenancy Act 1951, landlords must give the following notice periods:

Monthly Periodic Tenancy: At least one month's notice
Weekly Periodic Tenancy: At least one week's notice

The notice period should be calculated from the date the tenant receives the notice, not the date the notice is issued.

It's important to note that the notice must be provided in writing and should clearly state the date on which the tenancy will end.

This gives the tenant sufficient time to make alternative living arrangements.

2. Ensure Compliance with the Tenancy Agreement

Before issuing the termination notice, review the existing tenancy agreement to ensure that you are complying with any specific terms or conditions related to ending the lease.

Some agreements may require additional notice periods or specific methods of delivery for the termination notice.

If the tenancy agreement is silent on the termination process, you can rely on the default provisions in the Tenancy Act 1951.

3. Serve the Termination Notice Properly

Once you have determined the appropriate notice period, you must serve the termination notice to the tenant.

The notice can be delivered in person, by registered mail, or by leaving it at the rented premises.

It's important to keep a record of the date and method of delivery, as this may be required as evidence if the tenant disputes the termination.

4. Negotiate and Agree on the Termination Date

After serving the termination notice, you and the tenant may negotiate the actual termination date.

If the tenant agrees to vacate the property earlier than the specified notice period, you can mutually agree on an earlier end date.

However, if the tenant refuses to leave the property by the end of the notice period, you may need to take legal action to regain possession of the premises.

5. Handle the Security Deposit Properly

When the tenancy agreement comes to an end, you must refund the tenant's security deposit, subject to any deductions for outstanding rent, property damage, or other agreed-upon charges.

Ensure that you provide a detailed accounting of the security deposit deductions, if any, and return the remaining balance to the tenant in a timely manner.

6. Comply with the Tenant's Right to Renewal

In some cases, the tenant may have the right to renew the periodic tenancy.

This is particularly relevant if the tenant has been residing in the property for an extended period.

If the tenant exercises their right to renewal, you must comply with the tenant's request, unless you have a valid reason for refusing the renewal, such as the need to occupy the property yourself.

Potential Challenges and Considerations

Ending a periodic tenancy in Malaysia can sometimes involve challenges or considerations that landlords should be aware of:

Tenant Disputes: If the tenant disputes the termination, you may need to provide additional evidence or engage in negotiations to resolve the issue. In some cases, you may need to seek legal assistance to regain possession of the property.
Rent Arrears: If the tenant has outstanding rent payments, you may need to pursue legal action to recover the owed amount before the tenancy can be terminated.
Property Damage: If the tenant has caused significant damage to the property, you may need to deduct the repair costs from the security deposit or take legal action to recover the damages.
Subletting or Assignments: If the tenant has sublet the property or assigned the tenancy to another party, you'll need to consider their rights and obligations when terminating the agreement.
Tenant's Right to Renewal: As mentioned earlier, the tenant may have the right to renew the periodic tenancy, which you must consider when issuing the termination notice.

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Conclusion

Terminating a periodic tenancy in Malaysia requires careful adherence to the legal requirements and procedures outlined in the Tenancy Act 1951 and the Contracts Act 1950.

As a landlord, it's essential to provide proper notice, comply with the terms of the existing tenancy agreement, and handle the security deposit appropriately. By following the steps outlined in this blog post, you can ensure a smooth and lawful transition when ending a periodic tenancy in Malaysia.

Remember to stay informed about the latest legal updates and seek professional advice if needed to protect your rights as a landlord.

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About the Author

Danny H

Seasoned sales executive and real estate agent specializing in both condominiums and landed properties.