What are the differences between tenancy vs lease agreement in Malaysia? 🤔
The distinction between a tenancy agreement and a commercial lease agreement in Malaysia lies in the nature of the property being rented. Tenancy agreements are generally utilised for rental purposes of residential properties, while commercial lease agreements are utilised for rental purposes of commercial properties such as offices or retail stores.
Here are a few other key differences between tenancy agreements and commercial lease agreements in Malaysia:
1. Length of tenancy: The duration of tenancy agreements in Malaysia is commonly set for one year, but it can vary based on the mutual agreement between the landlord and tenant, and may be shorter or longer. On the other hand, the term of commercial lease agreements tends to be longer, ranging from three to five years.
2. Rent: The rent for a residential tenancy is typically determined by the market rate for similar properties in the area. Commercial leases may have a higher rent due to the potential for higher profits from a business.
4. Maintenance and repair: Landlords are generally responsible for maintaining and repairing residential properties in Malaysia. In a commercial lease, the tenant may be responsible for some or all of the maintenance and repair
Which option is better, you might ask?
It is not possible to determine which is "better" as it depends on the specific needs and circumstances of the individual. For some people, the security and stability of a long-term lease may be preferable, while for others the flexibility of a shorter tenancy may be more appealing. It is important for individuals to carefully consider their needs and priorities before entering into either a tenancy or a lease agreement.
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