PETALING JAYA: Following the announcement last week by the police that they could hold landlords responsible for illegal activities carried out on their property, it is now more urgent than ever that the long-awaited Residential Tenancy Act (RTA) be tabled, say stakeholders.
Malaysian Institute of Estate Agents president Tan Kian Aun said the Act should be expedited to address the rising cases of property-related scams, illegal activities, and landlord-tenant disputes.
“We’ve received a lot of complaints, not only from the public but also from real estate agents.
“Landlords are discovering that their units are being used for illegal activities such as online scams, illegal call centres, and even gambling – often only after neighbours complain or the tenants stop paying rent,” he said when contacted.
He shared a case in which a landlord only discovered that his condominium unit had been turned into an illegal call centre when the electricity bill skyrocketed and neighbours complained of suspicious activity.
“The tenant had passed all checks and even paid a six-month deposit. But when they stopped answering calls, we found the place rigged with wiring and computer set-ups, all hidden from plain view.
“Most landlords only realise what’s happening when the rent stops coming in or the police knock on their door,” he said.
Kian Aun said one essential provision of the proposed RTA should be to grant landlords the right to inspect their properties.
“You cannot put all of the blame on landlords. But landlords must also take responsibility.
“If we allow inspections, at least the owner or their agent can verify that the unit is being used properly,” Kian Aun said.
Housing and Local Government Minister Nga Kor Ming recently said the ministry is still drafting the RTA, which aims to regulate landlord-tenant relationships and ensure that both parties are given their rights and fulfil their obligations throughout the tenancy.
Senior lawyer Marcus Tan Kian Han, managing partner of Marcus Tan & Co, said property owners and joint management bodies (JMBs) should not be held fully accountable for illegal activities carried out by tenants unless there are clear laws or regulations in place.
“Whether it is fair and reasonable to impose such duties and obligations on property owners and JMBs depends on whether there are existing laws or regulations which, at the moment, there are none,” he said.
“In the absence of legislation requiring property owners to take such measures, it may not be truly fair and reasonable. It becomes more of a matter of common sense rather than a legal duty.”
In the absence of clear laws, Marcus suggested that property owners take proactive measures to protect themselves, such as verifying and keeping copies of tenants’ identification documents like identity cards, passports, or company registration papers.
He said owners should conduct background checks using available databases like the Credit Tip-Off Service or insolvency portals, and even conduct basic online searches to identify any possible red flags.
He also advised owners to seek tenants’ written consent to carry out comprehensive background searches that could reveal litigation history, and to include a clause in tenancy agreements that allows owners to inspect the property under reasonable notice, as well as indemnity clauses to protect themselves.
Marcus recommended that owners engage solicitors to draft stronger tenancy agreements and to use professional tools such as Handshake or public databases, including sanctions or wanted lists, to perform deeper checks on potential tenants.
He said JMBs should require landlords to submit copies of tenants’ identity documents and tenancy agreements for record-keeping and security purposes.
He added that JMBs should immediately notify landlords if security guards detect any suspicious or illegal activities, and they should pay attention to tenants who share access cards or to visitors not listed in the records provided by the landlord.
He said that without clear policies or regulations, both property owners and JMBs remain vulnerable to being implicated in criminal activities carried out by tenants and that firm guidelines are necessary to provide clarity and protection for all parties involved.
