Delay in paying rental every month, never pay in full. Did not pay TNB bill also. How to chase the tenant out in a legal way?  

In the first place, setup an agreement between both party when your tenant agree to rent your place

Agreement doesn't work with this kind of people... they signed but don't bother with all the terms

if this kind of people don't care, well yah, maybe you can use not so legal way lurhh  >.< I think nowaday many people facing this kind of problem, asshole ppl 

Use the hard way. Follow your tenancy agreement. example, once owner did not received rental after due date 7th of every month. The tenancy agreement is breached, owner has the right to chase this tenant away. The deposit will be refunded after compensate all outstanding issues.

I did this last Friday my own 2 sty house in Puncak jalil Sec 6. Looking for tenants now, can cobroke. interested can contact me.  I am landlord cum negotiator 016 2721821 (whatsapp). tq

The question is how to chase if they refuse to move out?

Try visit them every night and day ;)... if that fails, bring along few of your gud frens....top up with those uniform frens better still

If needed, u can try also to cut off electricity n water supply after lodging a police report

i have encounter many cases.. lots of them not pay promptly and many foreigner asked their friend to continue the agreement without owners knowledge.

just attended a CPD Study course last 2 days on this topic...

1. Serve Written Notice (with AR Registered post)

2. After all notice had been served and still no further action being carried out by tenant, file a court order in the session court. 
3. After court order had been obtained, you can then proceed to go to TNB to ask them to suspend the electricity supply and start making a police report 

If you suspend the electricity supply without prior notice, legal action can be taken again the owner itself and nowadays, you cannot just make a police report and changed the lock thereafter.

Ronald, i have the following questions:

1. must be written notice? SMS or whatsapp is not good enough? 

2. after how long then only we can file a court order?

3. how fast can we get the court order? can we file for the court order ourselves or have to appoint lawyer? have to be file to Session Court or we can file to the Tribunal? 

How long is the whole process until we get the court order?

What happen if the tenant still refuse to move even with the court order??

I used to have a tenant who didn't pay rental for my shoplot for 8 months! Until I send him a legal notice, he trashed the place so badly and then left. Nightmare!!! Spent quite some amount to refurbished again.

Because of the fear that tenant damage the place many owners rather they lost rent and ask tenant to leave without paying up :(

the law seems to be on the tenants side... poor land lord

Have experienced this with a client's property before. What we did was first, issue a termination letter citing the clause that was dishonored. Tenant still refused to pay/leave then landlord proceeded to lock the main door with a padlock and removed the fuse. Luckily landlord asked me to include that clause in the TA previously. Finally, tenant asked to forfeit all deposits and agreed to move out. 

But my advise is, if tenant is the rowdy type or landlord is not confident, then a police report will do, since TA is a binding contract.

I heard the police is not going to entertain this kind of report anymore.

yes correct if you report said tenant is not paying rent. But if you report that suspect tenants doing illegal act in your house,this is another story. police will act (forcibly invaded you house without permission consider illegal action)

Issue legal notice (through your lawyer) to the tenant and if they do not pay the bills within a given time frame, you have the rights to chase them out of your property or take them to court. But most owners would not want to do that due to the amount of legal fees you have to pay and hassle.

threaten to go to his office and humiliate the tenant, do u think it will work? it is not illegal right?

@ppnnkk2011 legal action can be taken against anybody that is "threatening any individual" with supporting proof.

@ppnnkk2011

Mr Pan, replying to your question:

If the rent or any part thereof shall be in arrears for a period of 7 days after the payable period. (Tenancy agreement shall cease)

Letter of Demand (via Law Firm) to your client (not by yourself)

and they will normally send via AR Register

normally LOD would require them to settle the full sum within 7 or 14 days, should there be no fully settlement after the said date, you can get your lawyer to file a case in the court.

depending on the amount (and which court you proceed to) , normally the court order is quite fast nowadays (as they have their own KPI as well) 

after court order, then can go to police station already ... and get the police to accompany you to your property.. (if the tenant is that thick skin, speechless) normally when you have the court order on hand, the next moment you notice will be they move out during mid night.

Ronald. it is a long and costly process...

@ppnnkk2011 there are a few case i saw with my own eyes, the owner went to make a police report then enter the house and stick the police report on the door / glass door (photocopy) 

then immediately the next day the tenant move out during 2 to 3am in the morning... 

@ppnnkk2011 well if the tenant are owing you RM 800 to RM 1k i believe most would not be bothered on doing that... just serve notice and hopefully they will move out and monies will be deducted using the security deposit (if it is sufficient)

but if the person is staying in the property for more than 2 months, then probably you have no choice.

cases like the above happened to mostly "Commercial" building / Shops / Factory / Land

you have no choice but to take legal action to recovery the monies back ... 

You are right, if the amount is small not worthwhile to go to that extend. Key is to make sure the outstanding amount doesn't go too big... take action early if tenant delays payment. 

Consultation > Purchase > Contract Administration > Mortgage Application > Settlement > Property Management > Migration

Contact Ms Lim Shu Xian 019 3388 133 for free advice. :)

Yea, actually most owners (especially Malaysians) can't be bothered to take legal action, because the legal fees cost a bomb. Probably even more than what they can claim back from the tenant. 

Take the opportunity cost, you may go for arbitration. File a complaint and hire a arbitrator @ KLRCA.org. the charges is cheaper compare paying a lawyer. Once you 'WIN', you may also request to get all compensation from your tenants including the fees to engage an arbitrator.

Have anyone tried arbitration for cases like that?? Does it work? How long is the process? Pls share info if any..

For a dispute amount of RM 5000 with 1 Arbitrator(s)

the Arbitrator's Fee is MYR 9,200 and Administrative Fee is MYR 5,500 excluding 6% GST

Again, whether you can really recover these whole amount is still a myth, as the defaulter cant even repay your monthly rental + utility bill in the first place.

ehh.. my godmother actually had this problem before, in a low cost apartment place. The rental is RM300/month, and this guy didn't pay for half a year. What she did was make a police report, then the police came and put the seal on the door to seal the place, then the guy begged her to open the door and that he would pay. So he did, and for a while he was paying on time until recently. He hasn't been paying in 6 months again so he's going to make a police report again.

Very good policemen your grandma got, which balai may I know?

I didn't know policemen can do that. Are you sure it's the rightful way?

Sometimes policemen do things that they are not allowed to do....

well i always joke around telling people that they are the largest street gang in the world... 

scary ...at the end of the day who is "soldier" and "thief"

Lizzy, ur grandmother has good relations with the police officers? LOL

Well, in this case is when you would have wish that your Tenancy Agreement is drafted professionally and that you have did all the necessaries to enforce the contract. Once you got everything prepared, it's easy for the lawyers to assist you. 

Damages to the properties etc can be included in the agreement, hence it is important to make sure that your contract is a valid one at the first place. 

Sometime, this is the unforsee circumstances that comes out. Make sure the black and white is written proper and let the legal take the action of it such as cutting the water / Electricity, lock the premise down.

@James Bob... May I know what business was the tenant running while accumulate the rental until 9 months?

@domng, warehouse for some food products :(

@ James... if I were you, the owe more than 2 months rental... I will try to cut their water and electricity utility supply. Probably follow up with legal notice soon after that. May I know if this warehouse tenant is through real estate agent or direct deal owner?

Dominic, is that actually legal? I was told by some small time lawyer that it's actually illegal to do so. At most you can only send legal notice to kick them out. 

Times is bad.... there will be many problematic tenants. Do proper screening before u rent your unit out

@ Veronica. If the utility is applied under the owner's name... the owner should have the right to terminate the water and electricity supply?

Unless the tenancy agreement clearly state that the owner cannot terminate the utility services without giving prior notice. Ofcourse, the tenant did pay upfront utility deposit to the owner.

Severing ties between owner and tenant should be the last resort, really not recommended. Best to screen the tenants before even signing the tenancy agreement at highlighted by @ PNK.

despite all written in agreement, say if no pay rental by every 7th of the month then cut water. But I remember few months ago one article news saying you (landlord) cannot cut water supply if your tenant still living there despite they don't pay you rental? 

Correct me if i'm wrong.

@ESH. What would you do if your tenant never pay rental for several months?

@domng i dont have tenant. But i know this is common issue faced by most landlord. However, legally landlord has no right to cut water if there is tenant living in the premise, despite tenant did not pay rental for several months. What landlord can do is to, report police first. The rest of procedures are hassle for landlord such as go to court, pay this & that fee & etc. Malaysian law is not so helpful to landlord, despite whatever agreement written between tenant and landlord. Basically, landlord just have to be extra careful & wisely when come to choosing tenant. 

In my condo here, me as committee seeing a lot of these things happened. Some cases the landlord even blame on management for their tenant's disappearance. >< I mean who the heck control your tenant from leaving the premise right? lol. Some tenants we witnessed they didn't pay 2-3 months electricity & water bill, and then they move out without informing their agent & landlord as well as management (they just take luggage and go, no one will know anyway) & then look for next premise (target). 

In other words, to prevent tenant from moving out without paying utility bills. It is best to apply for the utility under the name of the tenant instead of owner? 

This way the utility company will chase after the tenant to pay?

@domng, I think the utility company will change after the owner, not the tenant since the house is under the owner. 

@nicky_esh, I see most of the time owner will collect additional 2 months utility deposit just in case this kind of incident happens. 

@ppnnkk2011 I guess making a police report, go together with them and ask them to leave immediately, if none at home, disconnect all the electricity and water, inform the management on the matters too, to temporary block the access card to go inside

@ James, any instances where the utility company continue to chase after the owner even after tenant moved out?

So are you suggesting it is better for owner to collect utility deposit from tenant even after registered under tenant's name?

face the same issue, tenant run away. unit extremely messy

well at least your tenant did not damage the toilet bowl and sink... there was one of my case there the tenant run away the toilet bowl was both damaged and so is the sink, suspect domestic violence kind of tenant 

My past experience. i Sent notice reminder for 3 times. telling detail that the tenant not comply with tenancy agreement clause. If they still not change then issue notice rental termination.

in a nutshell, owners need to 100% screen their potential tenants before renting... else will cause more headache than a vacant property... 

@karim_justeland how to recover the outstanding? must get lawyer issue letter and bring to court?

@domng this is so true. 

I will do the same as owner, to filter my tenant list that agent'd pass to me. Its really no joke when things happens, even a tiny chance. when it happens, blame yourself but not others. kekeke. 

sometimes problem happen after a year or later times. people change from time to time. Hence, we must set some strict clause in the tenancy. 

@ppnnkk2011 

1. Contract: So the first thing you need to check is that you have a contract with a section that legally states your rights and what the processes are in the event of an eviction.

2. Eviction notice: If the tenant has defaulted numerous times on what was agreed upon in the contract/tenancy agreement, then the eviction notice can be issued in accordance with that same agreement. It must however, include a grace period so the tenant can make plans to pack and leave and also to do an official handover of all the items included in the apartment and make full payment of overdue rent.

3. Eviction order: If the tenant refuses to move and remains in the apartment or premises after the notice date expires, then you, as the landlord, can file an eviction order in court against the tenant for outstanding rental, double rental (you can claim double rental if the tenant remains past the due date) and recovery of the premises and all possessions belonging to you therein. Be warned though that an eviction order could take anywhere from three to six months at the Sessions Court and would cost you RM7,000 to RM25,000. If the tenant contests the summons, then the cost would be higher. 

Another way is you can lodge a polis report to evict the tenant after you served the notice (3 times for each month through post office to make it as a legal written notice). Sometime the outstanding rental amount or summons is not worth to go to Court. Hope it is helpful, all the best =)

Alex Tan
016-960 5191
CBD Properties (Puchong)

too bad, seem the laws is more towards the tenant side instead of owner side.

@6011_3531_5354 My two cents opinion: Not really true.... the law always protect whoever who pay for the agreement... "Tenancy Agreement" - Paid by the Tenant, the Agreement is drafted and presented to the Owner for them to Agree on the terms and condition... So if you put your signature on the tenancy agreement as an owner, means you had agreed with all the terms and condition that is presented by the Tenant. Thus any eviction have to follow what is written in the Tenancy Agreement... 

The same like SNP, it will always favor the Purchaser than the Seller as the purchaser is the one who paid for the agreement and the Seller / Owner is only putting a signature on it.

Case can be differ if you are signing those contract which consists of "FREE SPA AND LEGAL FEE" - When it comes to these, the conditions will always favor the developer because at the end of the day the developer is the one that is paying for all those charges, if it is still favoring the purchaser, then the developer I must say is relatively stupid.

But, isn't it wise for an owner to prepare the Tenancy Agreement for the tenants? 

I mean, after all these tenants do not own the property in the first place. For example, let's say you check in to a hotel, you are bound to accept their terms and conditions which were prepared by them. Some more a Tenancy Agreement is unlike a sub-sales SPA whereby both parties will appoint a lawyer to laid down all the clauses which they mutually agree upon. If an owner deliberately signed a Tenancy Agreement prepared by the tenants, (if I was the tenant that prepared it, I would have include clauses whereby I won't be penalized for late payment or damages to the property etc. and the owner shall be liable for any damage or losses I suffer while using the property) I think that would be kind of stupid for that owner la.

Anyway, whatever agreement you signed, make sure you go through it clause by clause. And if you are uncomfortable with the clauses written, it's better be safe than to be sorry later, don't accept it. You can make a counter offer. 

So i think it is best to appoint a mutual lawyer to prepare the Tenancy Agreement for the best interest of both owner and tenant.

Also if the Lawyer or third party willing to sign as witness for the tenancy agreement, stronger case if really go to court case?

tenancy agreement usually prepare by owner or agent with T&C agreed with both parties, but fee bare by tenant usually. 

@Ace Shun Zhong, yes you are right, that is the ideal scenario, but as you know owners nowadays dont event read the clause, and when it comes to something go wrong, then they will start blaming everybody except themselves ;) 

Unless the tenancy lease is more than tens of thousands or it involves in long term leasing e.g. 3+3+3, very seldom the owner would instruct the lawyer to prepare a tenancy agreement worth MYR 2k and below, and moreover the tenant also would not want to pay for the lawyer tenancy agreement cost (which is usually not cheap)

and normally whoever pays the agreement fee the clause will favor the person... 

just imagine, if you are paying the SPA to buy a property and the clause is favorable to the seller instead of the buyer e.g. Freehold max is 3+1 for transfer and if you did not include the clause for late charges of interest for it, this would not be fair for the buyer.

so if the SPA is being borne by the buyer, the clause need to be favorable to the person who is paying it, which is why the standard interest charges would be include into it should the seller delay the whole process.

agreement is use to protect both parties interest, as a owner of the property if you decided to rent your property out, i am sure when the tenancy agreement is being drafted, late payment charges is included into it and also damages to be incurred by the tenant should the item (for full furnished) unit is found to be damaged, excluding wear and tear furniture and fixings .

@Nic... you mention TA fee is usually bear by tenant. Which include any legal fee and stamp duty?

tenancy run away without return keys and access card, so terrible. 

@6011_3531_5354 

If access card, can still block access to the lost card and reprogram to another card.

If it is door, grille, postal box and shutter door keys, a bit difficult to change. and also incur additional cost to the owner

Any well experienced lawyers here? I wonder why when a Tenancy Agreement is a binding legal contract, we still need to obtain court order to terminate the TA/ to evict the defaulted tenants/ to reenter/ repossess our own properties etc when the tenants are the ones defaulted?  All landlords' actions arising from the tenants' breach in the T&Cs are deemed illegal just because we don't get the court order?

And why must termination notices be sent via AR Registered Mail, especially for condominiums/apartments where letters are chucked in the letter boxes on the ground floor? Some tenants can't even be bothered to check the letter box. Notices that we delivered to the doorstep and inserted in the property itself are deemed illegal and void just because we don't have the postal evidence?

Then what are the rights of the landlords when the tenants can easily default without any payment nor notices as if they are the owners, and we as landlords need to go through so much of hassle to take back OUR OWN PROPERTIES?

I really feel like putting my padlock and locking him out when my tenant doesn't want to answer and return my calls and messages and not paying rentals and utility bills etc. I don't even know if he's run away or still occupying there.

Hi all, I see a lot of unhappy owners in this thread.                                                  Moving forward, is it possible to feedback to the relevant authorities so that this issue can be further investigated and come out with standard guidelines for tenants and owners. This is to ensure everybody is clear on their legal obligations when signing on the Tenancy Agreement.

Can any legal advisors please help? Appreciate it.

I would really hope there are more legal advisors, consultants or know about legal to tell more here on what are the to Do's when they face problematic tenants that are bind to the TA and not willing to pay up the rent and Utilities. It's a big headache.

Word of advice, never act like a boss/tai lo that bring many people to lock the door/cur the utilities, Let the Legal (Police/Management) do the talking as it's against the law even if you are the owner to the property. The tenant has the rights, please be careful.

@ppnnkk2011 good sharing