How Tenant Can End Tenancy?

Renting a property can be a convenient and flexible living arrangement, but there may come a time when a tenant needs to end their tenancy agreement.

Whether it's due to a job relocation, a change in personal circumstances, or simply the desire to move to a new place, terminating a tenancy can be a complex process.

In Malaysia, the process of ending a tenancy agreement is governed by specific laws and regulations. As a tenant, it's important to understand your rights and responsibilities when it comes to ending a tenancy.

This blog post will provide a comprehensive guide on how tenants can end a tenancy in Malaysia, covering the key steps and considerations to ensure a smooth and hassle-free transition.

Understanding Tenancy Agreements in Malaysia

Before delving into the process of ending a tenancy, it's essential to have a basic understanding of tenancy agreements in Malaysia.

A tenancy agreement is a legal contract between a landlord and a tenant, outlining the terms and conditions of the rental arrangement.

In Malaysia, there are two main types of tenancy agreements:

Fixed-term Tenancy Agreement: This type of agreement specifies a predetermined duration for the tenancy, such as 6 months or 1 year. The tenancy automatically ends when the agreed-upon term expires, unless both parties agree to extend or renew the agreement.
Periodic Tenancy Agreement: Also known as a month-to-month tenancy, this type of agreement does not have a fixed end date. Instead, the tenancy continues indefinitely until either the landlord or tenant provides proper notice to terminate the agreement.

The terms and conditions of a tenancy agreement, including the notice period required for termination, are typically outlined in the contract signed by both the landlord and tenant.

It's important for tenants to carefully review and understand the terms of their tenancy agreement before taking any steps to end the tenancy.

Ending a Fixed-Term Tenancy Agreement

If you have a fixed-term tenancy agreement, there are a few options available to you when it comes to ending the tenancy:

1. Completing the Agreed-Upon Term

The simplest and most straightforward way to end a fixed-term tenancy agreement is to simply wait until the agreed-upon term expires.

Once the term ends, the tenancy will automatically terminate, and you can vacate the property without any further obligations.

2. Early Termination with Landlord's Consent

In some cases, you may need to end the tenancy before the agreed-upon term has expired.

This is known as "early termination."

To do this, you'll need to obtain the written consent of your landlord.

The process typically involves the following steps:

Notify the Landlord: Inform your landlord in writing that you wish to terminate the tenancy agreement early. Provide a specific date when you plan to vacate the property.
Negotiate Terms: Discuss the terms of the early termination with your landlord. This may include paying an early termination fee or forfeiting your security deposit.
Obtain Written Consent: Once an agreement has been reached, your landlord should provide you with written consent to terminate the tenancy agreement early.

It's important to note that the landlord is not obligated to agree to an early termination, and they may have the right to impose certain conditions or fees.

However, if you have a valid reason for needing to end the tenancy early, such as a job relocation or a change in personal circumstances, your landlord may be more willing to accommodate your request.

3. Breaking the Tenancy Agreement

If you need to end the tenancy agreement early and your landlord is unwilling to provide consent, you may have the option to "break" the tenancy agreement.

This is a more drastic measure and should be considered carefully, as it may have legal consequences.

To break the tenancy agreement, you'll need to provide your landlord with a written notice of your intention to terminate the agreement, specifying the date you plan to vacate the property.

However, be aware that you may be liable for any remaining rent due until the end of the agreed-upon term, as well as any other fees or penalties outlined in the tenancy agreement.

It's important to seek legal advice before taking this step, as the consequences of breaking a tenancy agreement can vary depending on the specific circumstances and the terms of your contract.

Ending a Periodic Tenancy Agreement

If you have a periodic tenancy agreement (also known as a month-to-month tenancy), the process of ending the tenancy is slightly different from a fixed-term agreement.

1. Providing Proper Notice

To end a periodic tenancy agreement, you'll need to provide your landlord with a written notice of your intention to terminate the tenancy.

The notice period required is typically one rental period (e.g., one month) or the length of time specified in your tenancy agreement.

For example, if your rent is due on the 1st of each month and your tenancy agreement requires a one-month notice period, you would need to provide your landlord with written notice by the 1st of the month, with your last day of tenancy being the last day of the following month.

It's important to check the specific notice period outlined in your tenancy agreement, as this can vary depending on the agreement and local laws.

2. Vacating the Property

Once you have provided the required notice, you'll need to ensure that you vacate the property by the agreed-upon date.

This may involve the following steps:

Cleaning and Restoring the Property: Thoroughly clean the property and ensure that it is in the same condition as when you moved in, barring normal wear and tear.
Returning the Keys: Return all keys, access cards, or other items related to the property to your landlord.
Providing a Forwarding Address: Provide your landlord with a forwarding address where they can send any remaining security deposit or other correspondence.

3. Recovering the Security Deposit

If you have paid a security deposit at the start of the tenancy, you may be entitled to have this deposit refunded to you, provided that you have fulfilled all your obligations under the tenancy agreement.

Your landlord should return the full security deposit within a specified time frame, typically 14 to 30 days after you have vacated the property. However, the landlord may deduct any outstanding rent, cleaning fees, or damages from the deposit before refunding the remaining amount.

If there is a dispute over the security deposit, you may need to seek legal advice or mediation to resolve the issue.

Considerations When Ending a Tenancy

When ending a tenancy in Malaysia, there are several important factors to consider:

Termination Fees: Depending on the terms of your tenancy agreement, your landlord may be entitled to charge you a termination fee or penalty for ending the tenancy early. This is particularly common with fixed-term agreements.
Rent Obligations: If you terminate the tenancy before the end of the agreed-upon term, you may be responsible for paying the remaining rent due until the end of the term, unless you have obtained your landlord's consent for early termination.
Security Deposit: Ensure that you have fulfilled all your obligations under the tenancy agreement, as this will affect the refund of your security deposit.
Landlord's Consent: If you need to end the tenancy early, it's always best to obtain your landlord's written consent to avoid potential legal complications.
Legal Advice: In some cases, it may be advisable to seek legal advice, especially if you are considering breaking the tenancy agreement or if there is a dispute over the security deposit.
Proper Documentation: Keep copies of all written notices, agreements, and any other documentation related to the termination of your tenancy.

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Conclusion

Ending a tenancy in Malaysia can be a complex process, but with the right knowledge and approach, it can be done effectively.

Whether you have a fixed-term or a periodic tenancy agreement, it's important to understand the specific requirements and steps involved in terminating the agreement.

By following the guidance outlined in this blog post, you can navigate the process of ending a tenancy in Malaysia with confidence.

Remember to review your tenancy agreement, communicate openly with your landlord, and seek legal advice if necessary. With a proactive and informed approach, you can ensure a seamless transition to your next living situation.

If you have any further questions or need assistance with ending your tenancy in Malaysia, don't hesitate to reach out to a professional property management or legal service for guidance.

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About the Author

Danny H

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