Prior to the implementation of the Residential Tenancy Act (RTA), real estate experts have expressed concerns regarding the potential for discrimination and unfair treatment of landlords. The RTA, which is designed to address issues related to rental properties, is expected to be the subject of much debate among landlords, tenants, and property agents.
Sean Tan Iherng, a property expert, and content creator, has pointed out that holding property owners fully liable for their tenants’ actions could exacerbate existing problems related to discrimination in the property market. Tan has suggested that landlords exercise caution, especially when presented with a tenancy offer that appears too good to be true, and has recommended that penalties be imposed on landlords who accept such offers.
Tan also emphasized the importance of including rules of conduct within tenancy agreements and suggested that property agents also be held liable when landlords are penalized for their tenants’ behavior. He highlighted the need for a balanced approach that acknowledges the responsibility of landlords but does not unfairly blame them for their tenants’ actions.
Malaysian Institute of Estate Agents president Tan Kian Aun has proposed the establishment of a specialized division within the Local Government Development Ministry to handle matters related to the return of deposits between landlords and tenants under the proposed RTA. Kian Aun has suggested that this division could function as a third party responsible for holding rental deposits and mediating disputes between landlords and tenants.
Kian Aun has also cited Australia’s implementation of the RTA as a reference, noting that the legislation in Australia offers tenants protection while respecting the legal rights and interests of landlords. He emphasized the need for a balanced framework that ensures tenants feel secure in their homes while also addressing the concerns of landlords.
National House Buyers Association committee member and Chinese division head Tan Chong Leng has emphasized the importance of having a tenancy agreement with clauses that restrict tenants from engaging in illegal activities. He has also proposed that landlords have legal representatives draft the tenancy agreements to ensure their legal effectiveness.
However, Chong Leng has expressed concerns about the potential complications of having the government act as a third-party custodian for rental deposits, noting that the process to recover deposits could be lengthy and complex.
Former deputy local government development minister Akmal Nasrullah Mohd Nasir has announced that the RTA will be tabled in Parliament next year, indicating that the ministry is in the process of drafting the law. This development suggests that the RTA is moving closer to implementation, prompting discussions and considerations among real estate experts and stakeholders.
In response to the proposed RTA, the police have called for landlords who rent out their properties to criminals, including scam syndicates, to be held accountable. Bukit Aman has highlighted the need to address cases where rental premises have been used for illegal activities, and has suggested that the liability for such activities should be placed on the property owners.
