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[Tenant's Guide] Terminating Rental Contract Early in Malaysia 2023

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Renting a home provides flexibility, but sometimes life takes unexpected turns. Whether it's a sudden job relocation, an urgent need to leave town, financial difficulties, or any personal circumstances, there may come a time when you have no choice but to leave your rented home without fulfilling your rental obligations as stated in the tenancy agreement.



Let's revisit the beginning of your journey with BlueDuck Zero Deposit Program:

  1. You became a verified tenant with a BlueDuck Tenant Profile.

  2. You signed the tenancy agreement with your landlord on Zero Deposit move-in.

  3. You opted for BD Pay, allowing direct debit as part of the terms and conditions.

It's crucial to keep in mind that both parties, the tenant and the landlord, are expected to honor the tenancy agreement and stay throughout the agreed-upon tenancy period. Any early termination is considered a dishonoring of the agreement.


Understanding the terms


  • Runaway tenant: This refers to a situation where you have to abruptly leave the rented property without fulfilling the terms of your rental agreement. It often involves leaving without giving notice to the landlord.

  • Rental default: This occurs when you fail to pay the rent throughout the tenancy period and leave the building with outstanding rent. It poses significant challenges for landlords as they rely on timely payments to cover expenses such as the mortgage, maintenance, and other costs.


If you find yourself facing these unpredictable situations, it's important to:

  • Inform and explain your circumstances to your landlord.

  • Make an effort to resolve any outstanding issues and settle any dues.

  • Maintain open communication to minimise misunderstandings and potential legal complications.

If you struggle to figure out how to pay your landlord back, you may contact BlueDuck for assistance. In such cases, your landlord could file a claim for compensation of up to *three months of guarantees to temporarily relieve the financial burden you face.


Know more about claim here if you are landlord.


Please note:

  • The compensation claimed will be recorded on the CTOS credit score system until you successfully repay back to BlueDuck. 

  • Tenants who have previously caused compensation claims will not be eligible to sign up for the BlueDuck Zero Deposit Program in the future.

Let's strive to create a positive rental environment based on trust and respect. Holding yourself accountable as a tenant is essential. Being responsible and reliable improves your living experience and significantly impacts your credit score and financial plans.


The BlueDuck Zero Deposit Program is designed to help you by reducing your initial move-in costs compared to traditional methods, allowing you to save up to *85% on move-in fees. However, it's crucial to remember that the program works best when you, as the tenant, fulfill your obligations as outlined in the tenancy agreement.


In short, when tenants honour their agreement, they can fully enjoy the benefits of the BlueDuck Zero Deposit Program, enhancing your overall renting experience.


Learn more now at www.blueduck.my


*T&C Apply


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[Landlord's Guide] How to Make a Claim with BlueDuck Malaysia - Dealing with Tenant Runaway

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[UPDATED ON 12 JUNE 2023]

Renting out a property can be an exciting adventure as a landlord. It allows you to benefit from your investment while providing someone with a much-needed home. However, sometimes things don't go as planned, and tenants may unexpectedly leave the property. We understand how frustrating this can be, but you're not alone in facing this problem.



Opting for BlueDuck Zero Deposit Rental: Making an Informed Choice

1. Contract Issuance: Once a verified tenant has been matched with your property, BlueDuck will proceed to generate a contract between BlueDuck and the tenant. This contract will encompass all the necessary property and tenancy details. As the landlord, you will receive a copy of this contract, ensuring transparency and clarity in the certificate of contract, which you can retrieve by logging into BD Portal.


2. Understand Claim Condition: Take the time to understand the conditions for making claims if tenants run away or disappear (default rental or tenant runaway). Remember, the restoration fee is at the landlord's expense, and the maximum claim amount is up to *3 months of rental, including outstanding utility fees.


Tenant runaway? Claiming Compensation:



1. Police report within 48 hours: once you have verified and confirmed that the tenant has indeed vacated the property, it is necessary to make a police report within 48 hours. This step is important as it creates an official record and deals with legal matters, if any. Additionally, it provides evidence for contract claims or legal actions if needed.


2. Email the claim details: To initiate the claim process, email the situation details to claim@blueduck.my. Be sure to include your certificate number as listed in your certificate of contract (retrieved from BD Portal). Our team will review your claim and process it accordingly. Claims are typically processed within 10 working days.


Regardless of your challenges as a BlueDuck landlord or agent, we are here to support you. If you encounter issues like a runaway tenant, remember to contact us. We will compensate you on behalf of the tenant first and liaise with the tenant accordingly. It's important to note that the tenant's CTOS credit scoring and BD scoring will reflect the compensation until they pay it back. We believe that holding tenants accountable can foster a better rental industry environment in Malaysia.

BlueDuck is always here and ready to support you throughout your landlord journey.

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TOP 2 Rental Strategies for Property Investor in 2023

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According to the PropertyGuru Malaysia Property Market Report Q2 2023, the Rental Demand Index experienced a 6.3% decline in Q1 2023, marking the second consecutive decrease quarter. As a result, landlords in Malaysia must devise effective strategies to differentiate themselves from the competition and attract tenants. This blog post will explore two rental strategies for property investment in Malaysia in 2023: long-term rentals and student housing.




  1. Long-Term Rentals: Stability and Steady Income


    Long-term rentals mean renting out a property to tenants for a long period, usually a year or more. This rental strategy provides stability and a consistent flow of money, which is attractive for landlords who want a reliable income. When tenants sign the rental agreement, they commit to renting the property for a specific time and pay rent monthly, ensuring a steady income for the landlord.


Have you ever been in a frustrating situation where a tenant fails to pay their rent on time? Go with BD Pay today!




To make the most of long-term rentals, landlords should focus on important factors: 


  • Choose desirable locations with good amenities, connectivity, and proximity to schools, offices, and transportation.

  • Keep the property in good condition through regular maintenance and prompt repairs.

  • Provide a well-maintained, comfortable living environment to encourage rental renewals and reduce turnover costs.



    2. Student Housing: Catering to the Housing Needs of Young People


Investing in student housing can be a highly profitable opportunity, particularly in areas with colleges and universities. For example: Kuala Lumpur, Penang, Selangor, Johor Bahru, and Kota Kinabalu, Sabah. Student housing is a smart choice because there is a lot of demand, students usually stay for a long time, and you can earn more money from renting to multiple students.


To make the most of student rentals, landlords should focus on important factors:


  • Offer individual rooms or shared apartments to accommodate multiple students in a single property.

  • Charge rent on a per-room basis to optimise rental income.

  • Provide affordable housing options that align with the budget constraints of students.

  • Focus on properties located near educational institutions to attract student tenants.

  • Understand and meet the specific needs and preferences of student tenants.

  • Follow any regulations or requirements set by the school or local authorities for student housing.


Remember, thorough research, understanding the market, and adhering to legal requirements is essential for successful property investment. By staying informed and adapting to the changing rental landscape, landlords can overcome market challenges and thrive in the competitive Malaysian rental market of 2023.


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Rental Property Damages: Malicious Damage and Wear and Tear 😟

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If you're a landlord, you've likely encountered a situation where tenants have damaged your rental property. Yes, we know how it can be a frustrating and disheartening experience. But wait a minute, did you know that not all damage is categorized as the same? Let’s take a look at it…






MALICIOUS DAMAGE - Intentional and Unnatural 

Malicious damage refers to intentional acts of harm or destruction inflicted upon the landlord's property or belongings. This awful situation is causing harm and financial loss to the property owner.

Examples of Malicious Damage

  • Purposely drawing or painting on the walls.

  • Doors or cabinets are forcefully broken or ripped off.

  • Countertops are getting burned intentionally. 

  • Deliberate destruction

     




WEAR AND TEAR: Long-term use leads to natural aging

Wear and tear in rental property means that things naturally get worn out or damaged over time. It occurs gradually as tenants conduct regular activities in the rental property. It's just a normal part of how things age and show signs of use over time.

Examples might be the wear and tear

  • Faded Paint and Curtain: Throughout a lease, the paint on the walls and the curtain may gradually fade or lose its original color due to exposure to sunlight or regular cleaning.

  • Scuffed Floors: Floors in high-traffic areas, such as entryways or hallways, may develop scuff marks or minor scratches from regular foot traffic.

  • Loose Door Handles: With repeated use, door handles or knobs may become slightly loose or less sturdy, requiring tightening or replacement over time.

  • Bathroom Tiles: May crack or chip over time due to regular use.

  • Loose or Squeaky Floorboards: With everyday walking, floorboards can become loose or develop squeaks.
    etc.






We all know how unpleasant it is when someone purposefully damages our belongings. But we must understand that objects have a limited lifespan and can help us set realistic expectations and take appropriate measures to maintain and replace items when needed.


Discover a new way to find your "perfect match" tenant with BlueDuck! Our verified tenants undergo the BlueDuck verification process, including credit score checks, ensuring reliability. 


Rent out your property confidently. Learn more at https://www.blueduck.my/landlord.


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Why is it Important to Rent a Comfortable House? - Tips for Malaysia Tenants 2023

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When choosing a rental property, comfort should be a top priority for tenants. A comfortable house goes beyond just providing a place to live; it can significantly impact various aspects of our lives, including our health, relaxation, productivity, and social life.




        1. For Health: A Safe Haven for Well-being

        A comfortable house promotes good health by providing a safe and healthy environment. Consider these essential factors:

  • Adequate Space: A comfortable house provides enough space for movement, allowing you to engage in physical activities and exercise routines, essential for maintaining good physical health.

  • Good Air Quality: Opt for a house with proper ventilation and well-maintained air conditioning systems. Fresh and clean air reduces the risk of respiratory problems and enhances overall well-being.

  • Natural Light: Seek houses with ample natural light. Sunlight brightens living spaces and helps regulate our circadian rhythms, improving sleep quality and mood.

  • Comfortable Temperature: A house with efficient heating and cooling systems ensures a comfortable indoor temperature, promoting physical and mental well-being.



    2. For Relaxation: Unwind in Tranquil Surroundings

        A comfortable house creates a relaxing environment that allows you to unwind and reduce stress levels. Consider the following elements:

  • Furniture: Look for well-designed, ergonomically sound furniture that supports your body and offers a cosy relaxing place.

  • Soft Lighting: Opt for warm and soft lighting options to create a calming atmosphere conducive to relaxation and tranquillity.

  • Soothing Colors: Choose paint colours and decor that evoke a sense of calmness, such as soft blues, greens, or earth tones.



    3. For Productivity: A Haven for Focus and Success

        A comfortable house can enhance your productivity and job satisfaction. Consider these tips for creating a comfortable and organized workspace:

  • Comfortable Seating: Invest in a comfortable chair and set up a dedicated workspace that promotes good posture and reduces physical discomfort.

  • Adequate Lighting: Ensure ample lighting in your workspace to reduce eye strain and improve focus.

  • Noise Reduction: Select a quiet area in the house for your workspace to minimize distractions and foster concentration.



    4. For Social Life: A Space to Connect and Bond

        A comfortable house can facilitate social activities and nurture a sense of community. Consider these aspects:

  • Entertaining Space: Look for a house that offers a spacious living room or outdoor area where you can entertain guests and create memorable experiences with family and friends.

  • Community Amenities: Explore rental properties that provide access to shared facilities like a clubhouse, swimming pool, or community garden, which can enhance your social interactions.

  • Neighbourhood Considerations: Research the neighbourhood to ensure it aligns with your social preferences, such as proximity to parks, restaurants, or community centres.


    Renting a comfortable house is crucial for tenants in Malaysia as it positively affects their health, relaxation, productivity, and social life.

    Prioritizing comfort when searching for a rental home leads to a happier living experience. 


    BlueDuck's Zero Deposit program allows you to rent a house by saving up to *85% on move-in fees.

    Discover more at www.blueduck.my and begin your journey to a comfortable and affordable rental experience.


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3 Important Things MUST DO Before Rental Tenancy Ends and Move Out

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Are you feeling a mix of excitement and nervousness as your rental tenancy ends? Moving out can be exciting and overwhelming whether you're new to renting or have done it before. 


You might feel worried about what to do next and how to leave the property properly. Well, don't worry! We're here to help you through three essential tasks that will make your departure from the property a breeze.



(1) Decide on Tenancy Renewal in Advance


About two months before your rental agreement ends, it's important to decide whether you want to continue renting with the current property. 


This gives both you and your landlord enough time to plan ahead. If you choose not to renew, your landlord can start looking for new tenants, making the transition smooth for everyone. It also gives you plenty of time to search for a new place to live and find suitable housing before your current agreement expires.


(2) Restore the Property: Back to the condition when you rent


It's important to be responsible and return the rental property to its original condition before your tenancy ends. This means reinstating the property to its former glory and treating it respectfully. There are a few key tasks you should complete to achieve this:


  • Air Conditioning Service: Arrange for a professional air conditioning service to ensure it is properly working.


  • Cleaning the Entire House: Take the time to clean every corner of the house thoroughly. From floors to windows, appliances to fixtures, ensure everything is tidy and presentable. 


  • Hole Patching: If any holes or damages are caused during your tenancy, take responsibility for repairing them. Patch up the holes and fix any broken fixtures to restore the property's integrity.



    By taking these steps, you showcase your accountability and leave the property in good shape for the next occupants.


(3) Give Notice and Keep Communication Open


Good communication is key when starting to rent a house and ending your tenancy, but it is also important if you need to terminate it before the agreed-upon date. Here's what you need to do when ready to communicate with your landlord regarding the end of the tenancy:


  • Review Your Agreement: Take time to carefully read your tenancy agreement to determine the notice period required. Following this timeframe will help you avoid any unexpected costs or complications.


  • Provide Written Notice: Compose an email or any written statement to your landlord or property manager (agent) clearly stating about the end of the tenancy. Include the specific date you plan to move out.


  • Discuss Moving Out: Initiate a conversation with your landlord or property manager to discuss the moving-out process. Address their expectations regarding the return of your deposit, property inspections, key return, and any other requirements they may have. Open and transparent communication will ensure a smooth transition and minimize any potential misunderstandings.


But hey! If you've subscribed to the BlueDuck Zero Deposit Program, you can say goodbye to concerns about deposit returns. With this program, there's no need to worry because you don't have to pay a deposit at the beginning of your tenancy.


By making a decision about tenancy renewal in advance, restoring the property to its original condition, and maintaining open communication with your landlord, you demonstrate your responsibility as a tenant. Embrace a deposit-free renting journey with BlueDuck and make your move-out process smooth, hassle-free, and easy!



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