Kuala lumpur: The proposed Residential Tenancy Act under the National Housing Policy (DRN) 2026-2035 aims to create a more transparent and balanced rental market by clearly defining the rights and responsibilities of tenants and property owners.
According to BERNAMA News Agency, Assoc Prof Dr Rohayu Abdul Majid, a real estate management expert from Universiti Teknologi MARA (UiTM), highlighted that the proposed Standard Tenancy Agreement could provide a standard framework covering key matters such as tenancy duration, deposits, rental rates, maintenance, utility bills, termination notices, and renewal terms. She emphasized the need for property owners to be responsible for the structure and basic systems, while tenants should be liable for damage resulting from misuse or negligence.
Dr Rohayu also discussed the potential establishment of a Residential Tenancy Tribunal to offer a fast and low-cost avenue for resolving disputes, particularly over deposits and rental arrears, without requiring parties to undergo lengthy court proceedings. Furthermore, a Centralised Deposit (Escrow) system could protect both parties by placing deposits in a neutral account, preventing disputes over refunds and unpaid arrears.
Additionally, she outlined the necessity for clear eviction procedures to prevent property owners from taking unilateral action against defaulting tenants. This would include clear rules on changing locks or cutting off utilities and ensuring reasonable access for inspections and repairs with prior notice.
On the issue of 'bird's nest houses,' modified to accommodate dozens of rooms, Dr Rohayu suggested that the Act could require modifications to comply with approvals and conditions set by local authorities. Maximum occupancy limits and minimum room sizes could be introduced, with mandatory approvals from the PBT and Fire and Rescue Department to ensure adequate emergency exits and ventilation.
Meanwhile, Assoc Prof Dr Muhammad Najib Razali from Universiti Teknologi Malaysia (UTM) proposed regulating the frequency of rental increases, especially in urban areas facing rising living costs. He suggested that rent control might reduce incentives for property owners to offer rental units and affect maintenance. Instead, a more suitable approach would be rent stabilisation and market transparency.
Dr Najib referred to New South Wales, Australia, as a comparative model, where rental rates cannot be increased during the first 12 months of a tenancy or within 12 months of a previous increase, with landlords required to provide at least 60 days' written notice. He proposed a similar approach for Malaysia, emphasizing the role of registered valuers and rental transaction data in determining reasonable market rentals.
The Housing and Local Government Minister, Nga Kor Ming, announced plans to draft and amend four laws, including the Real Estate Developers Act, Building Managers Act, and Residential Tenancy Act, alongside amendments to the Strata Management Act 2013, as part of the DRN 2026-2035.