Residential Tenancy Act not necessary? Restrictions on free market?

Residency Tenancy Act not necessary? Restrictions on free market?

I am a landlord, I think having a Residency Tenancy Act (RTA) is good

I do not like landlords who are too powerful (just because you own the house you think you are really the lord?) and could draft any rental agreement in their favour versus tenants. I also do not like tenants who could threaten landlords (who still have to pay monthly repayments and already paid such a huge down-payment to buy his property) simply because the market is in trouble.

There’s not even anything to guide the lawyers who knows the law better than the landlord or the tenant. In other words, anyone who is more powerful or who has more knowledge would decide how and what to put into the agreement. This is why I personally favour the RTA and that’s from my personal view. It’s a different perspective from a prominent association.

Article in nst.com.my The proposed Residential Tenancy Act (RTA) is not needed because the current system is considered adequate, according to the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president Subramaniam Arumugam.

Countries like the United Kingdom, Australia, New Zealand and Canada have specific laws pertaining to landlords and tenants in order to protect both parties and, in certain cases, to reduce housing discrimination.

According to Subramaniam, PEPS believes that the RTA is completely unnecessary and impractical. He said PEPS sees it as placing restrictions on the operations of free markets.

He said, “Micromanaging real estate in this sector in this manner, particularly through a government bureaucracy, may not align with investor-friendly policies. There is this fear that such measures could drive away investors and hinder the overall property investment climate in the country.” Do read the full article here: Article in nst.com.my 

Here is what Malaysian Institute of Estate Agents (MIEA) President Tan Kian Aun’s views

MIEA President Tan Kian Aun shared that we must understand the purpose of the RTA. What is the objective of the RTA? Objectively, RTA is needed for the property market. For example, the RTA will provide confidence to any investor including foreign investors. If a foreigner wants to invest in Malaysia, they would want a proper Act to protect them. Else, it is very discouraging to them.

Another example is when the landlord needs to evict a tenant for valid reasons, it is not easy to do. While it there is the Specific Relief Act and Distress Act which landlords could refer to but the RTA will make it easier, clearer and more straight forward under one act. There are a lot of things that are not covered in Specific Relief Act n Distress Act. That’s why we need the RTA. For example, landlords always have to bear all the costs of repair. It may also be unfair to the tenant. Some landlords may even choose to increase the rental by 50 percent just to evict the tenant legally. Most importantly, Kian Aun says that the RTA must not be too restrictive and must be fair and reasonable for both tenants and landlords too.

Property market must always be clear and transparent to all stakeholders

Whether the landlord or the tenant, both sides would benefit from not needing to try and outsmart one another. There is also no need for any party to read horror stories from both sides where there’s just no firm conclusion when something happens. Both should just have the transparent view of what will happen if someone strays away from the agreed terms. How many landlord or tenant whom we know who wants to read through hundreds of different articles when something goes wrong just to conclude that there’s actually no fixed way to fix things! All the best to the upcoming RTA. Hopefully we will have one.

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