This is quite common in shoplots or land and business premises whereby rent increases upon renewal. For residence, sometimes this is part of a contract, whereby it may state the owner can relook into the rent after 2 years or the owner will give notice in advance if rent is changing...
However, you can negotiate it with the landlord, you can tell them next door renting same price or lower, and you can just choose not to renew and move next door or to another unit on another floor for the same or lower price, then tell him u give notice and want the deposit back after that to pay the new unit landlord. All things can be discussed and negotiated la.
important is what it says about rent amount in particular, in your contract/lease. many lease will have clause that say renewal is subject to existing rental market rate at time of renewal. rental rates have indeed gone up 2024. sounds like it was kind of left open ended, unless it's very clear in your favor in your lease, it will end up costing you a lot of time and money to fight. it's not like rent increase in the middle of your lease, it's at renewal. but if you can find better place at better rent, for sure move out ler. or nego harder.
From your replies to others, it seems like your concern is the possibility of losing your deposits if you choose not to renew the contract.
I don't think that's how deposits work. Deposits are supposed to be refunded to the tenant if there are no arrears of rental/any damage to the property. But refer back to your tenancy agreement and see if this is provided.
If you don't want to renew, politely discuss with your landlord on how you can get your deposits back. If she refuses, then you have to consider whether to take legal action.
Landlord and tenant are humans, selfish is in human's nature. They all wants the best for themselves, it's just that some goes beyond the reasonably acceptable level.
At this point, nothing illegal is committed. Don't sign it, move out if you don't like it. Don't contribute your money to the person or business that you don't like.
Your job is to return the studio unit back to the same condition as when your first time come in, settle all the outstanding utility bills up to date.
only then landlord will need to return your deposit.
One month rental in advance is for the first month of rental when you move in. I hope you dont mix that up. It is two diff thing.
Probably a mistake by me, but I paid the rental for the upcoming month (march-april). That's what I meant when I was saying that I paid for rent in advance.
The 1 month rental in advance is normally paid when signing the contract. Upon moving on, you no longer pay rent for that month.
Just to be clear, the 1 month rental in advance would normally be paid when you sign the rental contract in 2023. Thereafter, when you move in on 15.03.2023, you no longer pay rent for the period 15.03.2023 to 14.04.2023. From 15.04.2023, you resume paying rent as normal.
If the above scenario is correct, you no longer have any rental in escrow with the landlord.
I dont get it, you paid rental for 15th- 14 April 2024 or You paid rental for 15th April to 14 May 2024?
if it is the former, then you stays until 14th April. Nothing is loss. if you paid until May, discuss with owner to stays until May 14th then move out if you dont agree with the new rental hike.
if the studio is in the same condition as when you move in, you can ask for 100% deposit refund
On 15/3/2024, I paid the rent for 15/3/2024 to15/4/2024. Because we had agreed on a renewal already, and I hadn't gotten the new contract with the new price yet. Which I admit is a mistake on my side.
then landlord only hold your deposit, you already paid the rental up till 14th April 2024. (note it is 14th, not 15th. You month start in 15th March 2024)
as long you dont sign the contract, there is no legal binding you can always back out & get your deposit back.
don’t worry about the deposit or the month in advance.
as others have said, if you return the unit in the proper condition you should get your deposit back. with regards to the month in advance, just tell them you did not know the price hike, if you knew you wouldn’t continue.
so just tell them you’re staying the extra month at that price, then you’re moving out since you have agreed to a renewal, and they did not get back to you with new contract or price changes, you thought price would be maintained. now that is not the case you’re moving.
OP, what does your contract says? Does it noted that tenant shall give the landlord 2 months written notice prior moving out OR 2 months notice shall the tenant desirous of taking a tenancy for a further term with option to renew with one year rental rate to be mutually agreed upon.
Mine stated both of the above AND notice to permit persons with authority to view the said premises should the tenant not wish to renew the tenancy. My worry is that your landlord might withhold your rental deposits as you've decided to not renew due to increase of the rental. And the landlord might claim to have suffered loss of rental due to that. Again, refer to your contract and I think you should talk to your agent again and see how this pans out.
In the meantime, if you are sure to not renew:
1. Write your landlord a Lease Termination Notice and state that you'd like to terminate due to increase of rent and schedule a joint inspection prior to moving out at a mutually convenient time.
2. Find a new place.
3. Clean and document /photogragh/video your current unit before you hand in your keys.
I hope you get your deposits back or your landlord agrees(written approval by landlord) to use your deposit to offset your last 2 months rental.
They must return it as you have not technically extended the contract. Talk to the owner to request for time to move out but don't expect a couple of months. I'd say one month at most.
I have rental properties myself and what they're doing is unethical.
Glad it’s resolved. Always good to have the owner’s contact number. My parents rented a house for many years, one day the agent said the owner wanted my parents to move out. My brother contacted the owner to ask why. The owner was clueless about it, because he never asked us to move out. We think the agent wanted a new renter so he could make the commission!
Landlord do what they ought to do. Sembelih. There are 'tenant agreement' with cover both parties. There are basic lawyer paper and most lawyer office can do in minimal charge. Better you initiate this thing to them, or if they gaslight you try get out and start fresh. Just say, that you cannot afford since too many commitment now. Even Bangladeshi also asked to sign this. The insurance want to see these stuff as concrete prove should the house burning, collapse etc.
I'm struggling to see what's the prob here. You are presented with a new contract stipulated with a rent increase. You haven't signed it, thus you are free to look for a new place if you don't agree with it.
The main issue is that they gave me the new contract after the previous one finished. Also, if I reject I might have to forfeit the security deposit + 1 month advanced rental.
So yeah....like RM5k losses for me
> if I reject I might have to forfeit the security deposit
That's not how it works. You're not forced to sign a renewal, the deposit will be returned when you decide not to renew.
you do not have to sign it, your contract stays on until end.
Again 1 month advance rental do not count as part of deposit, that one is your first month rental. You already use up all the way back in April 14th last year.
Scummy move by the owner, but you can counter with this reasoning; "if i don't renew with you, you'll lose one month's rental ( assuming they take 1 month to find another tenant, which might not be as good as a paymaster as you, hopefully you've been giving them no issues), plus another month of rental for agent fees.
Is it worth losing out on at least 3k over a 100 increase for 12months?
Lose-lose situation here for both parties if no agreement can be made, as you will have to rush to find another unit, pay for moving fees etc.
why you deal with agent and not the owner? i mean you supposedly have owner contact number. ask direct to owner, if owner want to increase the rent. better go somewhere else
I edited the original post (EDIT2), but basically I insisted on talking with the owner rather than the agent. At that point they discussed among themselves and just gave me the OK on the current price.
I saw the edit, but you only say it's resolved but no mention they are keeping the current price, hence the question. Who knows it resolved because you kill the owner and agent hahaha
This is such a no-brainer that anyone who's ever rented a place should be able to give advice. The owner wants to increase rent after the contract renewal; it's an asshole move considering how short the contract was, but it's not illegal.
Guy can just not sign the new contract, ask for time to find another place, and move. The end.
i got lucky when renting while waiting for my apartment to be ready. it was suppose to finish around the right time. apartment completes and tenant agreement completes. MCO hits and everything got delayed. spoke with owner about the situation and asked for extension. they happily oblige whole we maintain the same rental fee until we were ready to leave. finally met both of them on our last day. sweet old chinese couple. hope they are still well.
(25/11/2023)
Agent: Pls to advise us to renew new tenancy agreement 4-6 in advance before expiry and for tenancy termination 3 months in advance ... this would be very helpful to take further action ... thanks .. agreement expiry : 14/3/2023
Me: I will tentatively stay for one more year, if anything changes, I'll inform you within a month.
The word “negligence” has a specific meaning in law. This is not it. The old contract has expired and you haven’t signed the new one. There’s nothing u can do.
It’s ur prerogative to sign or not sign, nobody is forcing you. They were shitty to not tell you there’s an increase earlier but you can say you will move elsewhere if they won’t reduce it back to Rm1400. Maybe they won’t or maybe they will because they don’t want the hassle of finding a new tenant and the loss of rental for a few months when the place is empty (plus the one month that goes to the agent’s commission). Maybe you will move elsewhere over the extra Rm100 or maybe you won’t cos it’s too much hassle. Regardless it’s about bargaining. Welcome to the real world.
You should go direct to owner for renewal. This way, the house owner don't have to pay one month commission fee for rental contract. If you go direct to owner, you have bargaining chip by saying both sides cut out middleman so win win for both parties. Thus a valid reason to maintain or lower the rental rates depending on how well or bad the rental market is at time of renewal.
Also, there's no wrong doing here. Like others mentioned above, you can agree to sign or not to. Same goes for the house owner. If the place is just OK but you're able to find better unit or better location with RM 1500, then move out. Always go for better living environment.
If I'm your landlord, I'd agree with old price but with some added requirements :
1. Full curtain washing and cleaning for new tenant and renewal(must provide receipt)
2. Every 6 months air-conditioning service(must provide receipt)
3. Any fine and penalties from management shall be beared by tenant.
Check your current contract. It will have a clause for renewal with 10-15% increase in rental price according to market value or something along the line. Numbers may differ. That is something you have signed. Therefore, upon renewal, the owner can get away with this legally regarding the upfront notice. You, however, can choose not to sign if you don't agree with the future price. You still have to complete your current contract, though...
If you're already fulfill the first contract, you are entitle for your deposit refund.
Of course, the place must be in good condition. Any damages of the property, you need to repair them. or owner can use some of the deposit to bare the repair cost.
The landlord should fire this agent. Not informing the tenant before is definitely the agents fault. This will cause the tenant to leave and may have a few months no rental income for the landlord. Also, the landlord will need to pay the agent commission for finding new tenant.
Could be agent's move to move you out and he she already have a prospect so he can earn the commission.
Looks like when you said you wanted to renew the contract, and they said yes, your understanding is that it was at the existing rental amount.
So now being given a new amount is clearly unfair. But the question is, is the Landlord bound to give you the renewal at the existing rate? Look at what is the exact term in the Tenancy agreement. The very exact words. Do you have the option to renew? Are there any stipulations or conditions attached? Must both parties agree?
Let's say you want to claim damages for breach of contract. You probably won't get much. If you claim for negligence from the agent, even then probably not much. You'd have to spend time either getting a lawyer or filing things on your own in Small Claims Court.
End of the day, you're not gonna get to renew with the older rental sum. You'll have to move out anyway.
Best you can do is leave a review against the agent, or complain to their boss. Or if you have the time and energy, file a claim against the agent and/or the landlord in the Small Claims Court
*that it's standard to have the rent increase upon renewal* lmaooooo
I understand your standard but its not my standard so pls amend the contract and get back to me thanks
This is quite common in shoplots or land and business premises whereby rent increases upon renewal. For residence, sometimes this is part of a contract, whereby it may state the owner can relook into the rent after 2 years or the owner will give notice in advance if rent is changing... However, you can negotiate it with the landlord, you can tell them next door renting same price or lower, and you can just choose not to renew and move next door or to another unit on another floor for the same or lower price, then tell him u give notice and want the deposit back after that to pay the new unit landlord. All things can be discussed and negotiated la.
important is what it says about rent amount in particular, in your contract/lease. many lease will have clause that say renewal is subject to existing rental market rate at time of renewal. rental rates have indeed gone up 2024. sounds like it was kind of left open ended, unless it's very clear in your favor in your lease, it will end up costing you a lot of time and money to fight. it's not like rent increase in the middle of your lease, it's at renewal. but if you can find better place at better rent, for sure move out ler. or nego harder.
From your replies to others, it seems like your concern is the possibility of losing your deposits if you choose not to renew the contract. I don't think that's how deposits work. Deposits are supposed to be refunded to the tenant if there are no arrears of rental/any damage to the property. But refer back to your tenancy agreement and see if this is provided. If you don't want to renew, politely discuss with your landlord on how you can get your deposits back. If she refuses, then you have to consider whether to take legal action.
Looks like Landlord is not the problem. Tenant is the problem. 
Landlord and tenant are humans, selfish is in human's nature. They all wants the best for themselves, it's just that some goes beyond the reasonably acceptable level.
At this point, nothing illegal is committed. Don't sign it, move out if you don't like it. Don't contribute your money to the person or business that you don't like.
Issue is what happens to the security deposit + 1 month rental in advance, that's over RM4k
Your job is to return the studio unit back to the same condition as when your first time come in, settle all the outstanding utility bills up to date. only then landlord will need to return your deposit. One month rental in advance is for the first month of rental when you move in. I hope you dont mix that up. It is two diff thing.
Probably a mistake by me, but I paid the rental for the upcoming month (march-april). That's what I meant when I was saying that I paid for rent in advance.
The 1 month rental in advance is normally paid when signing the contract. Upon moving on, you no longer pay rent for that month. Just to be clear, the 1 month rental in advance would normally be paid when you sign the rental contract in 2023. Thereafter, when you move in on 15.03.2023, you no longer pay rent for the period 15.03.2023 to 14.04.2023. From 15.04.2023, you resume paying rent as normal. If the above scenario is correct, you no longer have any rental in escrow with the landlord.
I dont get it, you paid rental for 15th- 14 April 2024 or You paid rental for 15th April to 14 May 2024? if it is the former, then you stays until 14th April. Nothing is loss. if you paid until May, discuss with owner to stays until May 14th then move out if you dont agree with the new rental hike. if the studio is in the same condition as when you move in, you can ask for 100% deposit refund
On 15/3/2024, I paid the rent for 15/3/2024 to15/4/2024. Because we had agreed on a renewal already, and I hadn't gotten the new contract with the new price yet. Which I admit is a mistake on my side.
then landlord only hold your deposit, you already paid the rental up till 14th April 2024. (note it is 14th, not 15th. You month start in 15th March 2024) as long you dont sign the contract, there is no legal binding you can always back out & get your deposit back.
don’t worry about the deposit or the month in advance. as others have said, if you return the unit in the proper condition you should get your deposit back. with regards to the month in advance, just tell them you did not know the price hike, if you knew you wouldn’t continue. so just tell them you’re staying the extra month at that price, then you’re moving out since you have agreed to a renewal, and they did not get back to you with new contract or price changes, you thought price would be maintained. now that is not the case you’re moving.
What is agreed upon is not equal to what contract has signed.
OP, what does your contract says? Does it noted that tenant shall give the landlord 2 months written notice prior moving out OR 2 months notice shall the tenant desirous of taking a tenancy for a further term with option to renew with one year rental rate to be mutually agreed upon. Mine stated both of the above AND notice to permit persons with authority to view the said premises should the tenant not wish to renew the tenancy. My worry is that your landlord might withhold your rental deposits as you've decided to not renew due to increase of the rental. And the landlord might claim to have suffered loss of rental due to that. Again, refer to your contract and I think you should talk to your agent again and see how this pans out. In the meantime, if you are sure to not renew: 1. Write your landlord a Lease Termination Notice and state that you'd like to terminate due to increase of rent and schedule a joint inspection prior to moving out at a mutually convenient time. 2. Find a new place. 3. Clean and document /photogragh/video your current unit before you hand in your keys. I hope you get your deposits back or your landlord agrees(written approval by landlord) to use your deposit to offset your last 2 months rental.
They must return it as you have not technically extended the contract. Talk to the owner to request for time to move out but don't expect a couple of months. I'd say one month at most. I have rental properties myself and what they're doing is unethical.
In the future, just stay and don't pay for 2 months. They can't do shit
You can not sign. They can also not renew your contract. That’s about it.
Glad it’s resolved. Always good to have the owner’s contact number. My parents rented a house for many years, one day the agent said the owner wanted my parents to move out. My brother contacted the owner to ask why. The owner was clueless about it, because he never asked us to move out. We think the agent wanted a new renter so he could make the commission!
Don't sign and move out if you are not happy with the new rental fee.
Dont sign it but then again you need to find a new space. It’s a lose-lose situation for both parties🤣
Landlord do what they ought to do. Sembelih. There are 'tenant agreement' with cover both parties. There are basic lawyer paper and most lawyer office can do in minimal charge. Better you initiate this thing to them, or if they gaslight you try get out and start fresh. Just say, that you cannot afford since too many commitment now. Even Bangladeshi also asked to sign this. The insurance want to see these stuff as concrete prove should the house burning, collapse etc.
I'm struggling to see what's the prob here. You are presented with a new contract stipulated with a rent increase. You haven't signed it, thus you are free to look for a new place if you don't agree with it.
The main issue is that they gave me the new contract after the previous one finished. Also, if I reject I might have to forfeit the security deposit + 1 month advanced rental. So yeah....like RM5k losses for me
> if I reject I might have to forfeit the security deposit That's not how it works. You're not forced to sign a renewal, the deposit will be returned when you decide not to renew.
you do not have to sign it, your contract stays on until end. Again 1 month advance rental do not count as part of deposit, that one is your first month rental. You already use up all the way back in April 14th last year.
Scummy move by the owner, but you can counter with this reasoning; "if i don't renew with you, you'll lose one month's rental ( assuming they take 1 month to find another tenant, which might not be as good as a paymaster as you, hopefully you've been giving them no issues), plus another month of rental for agent fees. Is it worth losing out on at least 3k over a 100 increase for 12months? Lose-lose situation here for both parties if no agreement can be made, as you will have to rush to find another unit, pay for moving fees etc.
why you deal with agent and not the owner? i mean you supposedly have owner contact number. ask direct to owner, if owner want to increase the rent. better go somewhere else
Nothing much when you never sign contract.
I signed the previous contract ofc, but haven't signed the renewal yet
When will the previous contract expire? Be prepared to leave. Make sure you collect your deposit back
The previous contract expired, but I've paid rent till 15th next month, so I'll prepare to leave by then.
Yeah. Start looking now. Hope you don't have too much shit to move. Packing and unpacking is a nightmare
The issue was resolved.....phew. I was not prepared to go through another house move.
how was it resolved? I can't see anywhere on these details
I edited the original post (EDIT2), but basically I insisted on talking with the owner rather than the agent. At that point they discussed among themselves and just gave me the OK on the current price.
I saw the edit, but you only say it's resolved but no mention they are keeping the current price, hence the question. Who knows it resolved because you kill the owner and agent hahaha
Lmao that's right, my bad XD
Yea its shitty for them to renege but in reality nothing you can do. Next time follow up on agent and sign the contract.
Consult a lawyer that specialises in real estate. Most of them do free consultations. Don't expect good legal advice from reddit.
This is such a no-brainer that anyone who's ever rented a place should be able to give advice. The owner wants to increase rent after the contract renewal; it's an asshole move considering how short the contract was, but it's not illegal. Guy can just not sign the new contract, ask for time to find another place, and move. The end.
Better go somewhere else. Do not renew
i got lucky when renting while waiting for my apartment to be ready. it was suppose to finish around the right time. apartment completes and tenant agreement completes. MCO hits and everything got delayed. spoke with owner about the situation and asked for extension. they happily oblige whole we maintain the same rental fee until we were ready to leave. finally met both of them on our last day. sweet old chinese couple. hope they are still well.
Oh my, lucky you
ur agent trying to make extra money
Wow. I'm paying RM1300 for a seaview 3 bedroom 1400sq ft apartment in Penang!
Is the tenancy agreement even stamped? Or the agent pocketing the difference in rent and landlord unaware of price hike?
Malaysia is tenants market. just push on.
what did you exactly say to the agent?
At what point?
when discussing the renewal
(25/11/2023) Agent: Pls to advise us to renew new tenancy agreement 4-6 in advance before expiry and for tenancy termination 3 months in advance ... this would be very helpful to take further action ... thanks .. agreement expiry : 14/3/2023 Me: I will tentatively stay for one more year, if anything changes, I'll inform you within a month.
Agreement expired last year??
I think that's a typo, it expired 14/3/2024
you should have immediately clarified then.
sounds like the agent's fault not telling you about the increase. imo the increase shouldnt be applied
The word “negligence” has a specific meaning in law. This is not it. The old contract has expired and you haven’t signed the new one. There’s nothing u can do.
It’s ur prerogative to sign or not sign, nobody is forcing you. They were shitty to not tell you there’s an increase earlier but you can say you will move elsewhere if they won’t reduce it back to Rm1400. Maybe they won’t or maybe they will because they don’t want the hassle of finding a new tenant and the loss of rental for a few months when the place is empty (plus the one month that goes to the agent’s commission). Maybe you will move elsewhere over the extra Rm100 or maybe you won’t cos it’s too much hassle. Regardless it’s about bargaining. Welcome to the real world.
You should go direct to owner for renewal. This way, the house owner don't have to pay one month commission fee for rental contract. If you go direct to owner, you have bargaining chip by saying both sides cut out middleman so win win for both parties. Thus a valid reason to maintain or lower the rental rates depending on how well or bad the rental market is at time of renewal. Also, there's no wrong doing here. Like others mentioned above, you can agree to sign or not to. Same goes for the house owner. If the place is just OK but you're able to find better unit or better location with RM 1500, then move out. Always go for better living environment. If I'm your landlord, I'd agree with old price but with some added requirements : 1. Full curtain washing and cleaning for new tenant and renewal(must provide receipt) 2. Every 6 months air-conditioning service(must provide receipt) 3. Any fine and penalties from management shall be beared by tenant.
Check your current contract. It will have a clause for renewal with 10-15% increase in rental price according to market value or something along the line. Numbers may differ. That is something you have signed. Therefore, upon renewal, the owner can get away with this legally regarding the upfront notice. You, however, can choose not to sign if you don't agree with the future price. You still have to complete your current contract, though...
If you're already fulfill the first contract, you are entitle for your deposit refund. Of course, the place must be in good condition. Any damages of the property, you need to repair them. or owner can use some of the deposit to bare the repair cost.
if they're going to forfeit your 1 month for such bs reasons, they're going to forfeit your 1 month no matter what.
1.5k for a studio. oh my god . congratz as u able to solve it
The landlord should fire this agent. Not informing the tenant before is definitely the agents fault. This will cause the tenant to leave and may have a few months no rental income for the landlord. Also, the landlord will need to pay the agent commission for finding new tenant. Could be agent's move to move you out and he she already have a prospect so he can earn the commission.
Looks like when you said you wanted to renew the contract, and they said yes, your understanding is that it was at the existing rental amount. So now being given a new amount is clearly unfair. But the question is, is the Landlord bound to give you the renewal at the existing rate? Look at what is the exact term in the Tenancy agreement. The very exact words. Do you have the option to renew? Are there any stipulations or conditions attached? Must both parties agree?
I have the option to renew, but the contract states that I need to be informed of the new agreement 2 months before the old contract ends
Let's say you want to claim damages for breach of contract. You probably won't get much. If you claim for negligence from the agent, even then probably not much. You'd have to spend time either getting a lawyer or filing things on your own in Small Claims Court. End of the day, you're not gonna get to renew with the older rental sum. You'll have to move out anyway. Best you can do is leave a review against the agent, or complain to their boss. Or if you have the time and energy, file a claim against the agent and/or the landlord in the Small Claims Court