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Short Lease Agreement Template for Malaysia

A comprehensive yet concise lease agreement template designed specifically for the Malaysian market, compliant with the National Land Code 1965 and relevant Malaysian property laws. This document establishes the legal framework for short-term property rentals, typically under three years, outlining essential terms including rent, duration, maintenance responsibilities, and termination conditions. It incorporates necessary provisions to protect both landlord and tenant interests while maintaining flexibility for various property types, from residential to commercial uses, and includes all mandatory elements required under Malaysian tenancy law.

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What is a Short Lease Agreement?

The Short Lease Agreement serves as a fundamental legal instrument for establishing temporary property rental arrangements in Malaysia. This document is particularly useful for leases under three years and can be adapted for both residential and commercial properties. It ensures compliance with Malaysian legislation, including the National Land Code 1965, Contracts Act 1950, and Stamp Act 1949. The agreement encompasses essential elements such as rental terms, security deposits, maintenance obligations, and termination provisions, while remaining adaptable to various property types and tenant needs. It's designed to provide adequate protection for both parties' interests while maintaining clarity and accessibility, making it suitable for straightforward leasing arrangements where a more complex, long-term lease agreement might be unnecessary.

What sections should be included in a Short Lease Agreement?

1. Parties: Identifies and provides full details of the landlord and tenant, including names, identification numbers, and addresses

2. Background: Brief context about the property and purpose of the lease

3. Definitions: Defines key terms used throughout the agreement

4. Demised Premises: Detailed description of the property being leased, including address and specific areas included/excluded

5. Term and Possession: Specifies the duration of the lease and possession date

6. Rent and Payment Terms: States the rental amount, payment schedule, and method of payment

7. Security Deposit: Specifies the security deposit amount, terms of holding, and conditions for refund

8. Utilities and Outgoings: Details responsibility for utility payments and other ongoing expenses

9. Use of Premises: Specifies permitted use of the property and any restrictions

10. Maintenance and Repairs: Outlines responsibilities for property maintenance and repairs

11. Tenant's Covenants: Lists the tenant's obligations under the lease

12. Landlord's Covenants: Lists the landlord's obligations under the lease

13. Termination: Specifies conditions and process for lease termination

14. Governing Law: Confirms the agreement is governed by Malaysian law

What sections are optional to include in a Short Lease Agreement?

1. Insurance: Required when either party needs to maintain specific insurance coverage

2. Assignment and Subletting: Include when the landlord wants to explicitly prohibit or set conditions for subletting

3. Renovation and Alterations: Necessary when allowing or restricting modifications to the property

4. Option to Renew: Include when offering the tenant an option to extend the lease term

5. Break Clause: Include when either party wants the ability to terminate early under specific conditions

6. Quiet Enjoyment: Optional clause guaranteeing tenant's right to peaceful occupation

7. Force Majeure: Include when parties want provisions for unforeseen circumstances

8. Pet Clause: Required when specifically allowing or prohibiting pets on the premises

What schedules should be included in a Short Lease Agreement?

1. Schedule 1 - Property Inventory: Detailed list of furniture, fixtures, and fittings included in the lease

2. Schedule 2 - Property Condition Report: Documentation of the property's condition at the start of the tenancy

3. Schedule 3 - House Rules: If applicable, specific rules for property use, especially in managed buildings

4. Appendix A - Floor Plan: Drawing or plan showing the layout of the leased premises

5. Appendix B - Photographs: Visual documentation of the property's condition at commencement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Document Type

Rental Agreement

Cost

Free to use

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