MALAYSIA: For landlords, a reliable tenant is crucial in ensuring steady rental income, particularly when there are loan repayments and maintenance fees to cover. However, for one Malaysian landlord, this has become an ongoing struggle as his commercial tenant, a registered Sdn Bhd company, has failed to pay rent for three consecutive months.
The tenancy agreement, which began in December 2023 and is set to run until December 2025, has already turned problematic just a year into the contract. Despite multiple attempts to negotiate, the tenant has repeatedly given excuses or promised payment, only to ghost him later. The landlord has even tried asking for partial payment, knowing that an eviction could mean months without rental income, costly refurbishments, and difficulties finding a new tenant.
A dilemma between eviction and potential sale
Adding to the complexity of the situation, the tenant recently expressed interest in purchasing the office space, a deal the landlord is eager to close. The property has been a source of stress and financial strain for years, with the landlord stating that selling it would allow him to settle his outstanding loan and regain peace of mind.
He suspects that the company’s owner, who holds an official title, might be waiting on a payment from a government-linked contract, which would explain the delays. If the payment comes through, the tenant could follow through with the purchase, entirely resolving the situation. However, given their inability to even settle overdue rent and a 2% deposit, the landlord is beginning to lose hope.
Although the landlord still hopes the tenant will pay, he has decided to begin the eviction process as a precaution. Waiting too long could result in more months of lost rental income, and if eviction becomes necessary, the legal process could take several months to complete.
The landlord remains conflicted, wanting to avoid unnecessary legal action if the tenant can resolve their financial issues and proceed with the purchase. However, as months pass with no payments, the risk of further losses increases.
Reddit reactions: Weighing legal action vs. financial loss
The landlord’s predicament resonated with many Reddit users, particularly those familiar with Malaysia’s rental and legal landscape. Some offered practical advice on handling eviction legally.
One user shared, “A lawyer advised me that if they break the rules of the contract (not paying on time), you can send an eviction notice without a demand letter. State the rules of eviction, like giving them one month to move out or charging double rent if they don’t, but if they owe less than RM5,000 (S$1,501), it’s often better to accept the loss because recovering less than RM5,000 through legal means isn’t worth the cost.”
Others warned about the time and expense of legal action, noting that formal eviction proceedings could take five to six months and require substantial legal fees. One user bluntly stated, “Just remember that it’s more expensive for you if they stay and don’t pay than if you hire a lawyer and start the legal process.”
Some commenters expressed disbelief at how long the tenant had gone without paying rent. “Three months is a lot. Even when I was too busy or travelling for work, the latest I ever paid was one week late, and I already felt guilty,” one netizen remarked, highlighting the tenant’s apparent lack of responsibility.
Balancing financial risks with legal options
The landlord now faces a critical decision: continue waiting for overdue payments with the hope of finalising the sale or proceed with legal action to remove the tenant and secure a paying renter. While eviction is a lengthy and costly process, allowing a tenant to remain without paying only deepens financial losses.
For landlords dealing with similar situations, this case underscores the importance of having clear tenancy agreements, enforcing prompt payments, and knowing the legal eviction process. Whether the tenant follows through with their purchase or the landlord is forced to evict them, acting sooner rather than later could prevent further financial strain.
Read also: Malaysian contemplates renting vs. buying a house at 25—netizens weigh in
Featured image by Vecteezy (for illustration purposes only)