5 Red Flags in a Tenancy Agreement That Could Cost You Thousands (And How to Spot Them)
Finding the right rental property in Malaysia is an emotional rollercoaster. You’ve spent weeks scrolling through property portals, dodging fake listings, and sweating through viewings in the afternoon heat. Finally, you find the one. The location is perfect, the rent is within budget, and you are ready to transfer the deposit.
But then, the agent hands you the Tenancy Agreement.
It’s usually a thick stack of paper, dense with legal jargon. The agent might wave it off, saying, “Don’t worry, this is just a standard agreement.”
Here is the hard truth: There is no such thing as a “standard” agreement.
Most agreements provided by agents or landlords are drafted to protect the property owner, not you. If you sign without checking the fine print, you could be agreeing to pay for roof repairs, losing your privacy, or forfeiting your deposit for reasons you didn’t anticipate.
Before you put your signature on that dotted line, scan the document for these 5 Red Flags.
Red Flag #1: The “You Fix Everything” Clause
The Danger: Imagine living in your new condo for two months. Suddenly, the water heater stops working, or a pipe bursts inside the wall. You call the landlord, expecting them to handle it. Instead, they point to a vague clause in your contract that says: “The Tenant shall maintain the property in good condition and pay for all repairs.”
In a bad agreement, the line between “maintenance” and “repair” is blurred. You could find yourself financially responsible for structural defects, aging appliances, or plumbing issues that were essentially ticking time bombs before you even moved in. We have seen tenants forced to pay for new air-conditioners simply because the old ones died of old age during their tenancy.
The Solution: A fair agreement must clearly distinguish between Fair Wear and Tear and Damage.
- Landlord’s Job: Structural issues (walls, roofs, wiring, hidden pipes) and the replacement of major appliances that fail due to age.
- Tenant’s Job: Consumables (lightbulbs), hygiene (cleaning filters), and fixing things you actually broke through misuse.
If the contract doesn’t explicitly say the landlord pays for structural repairs, do not sign it.
Red Flag #2: The “Surprise Visit” (Lack of Privacy)
The Danger: You are relaxing at home on a Sunday morning in your pyjamas. Suddenly, you hear a key turning in the lock. The landlord walks in, perhaps with a contractor or a future buyer, claiming they just wanted to “check the condition of the house.”
Without a specific clause protecting your privacy, you might feel like a guest in your own home. Some unfair agreements grant the landlord “unrestricted access” or only require them to knock before entering. This lack of boundaries can be incredibly stressful and invasive.
The Solution: You legally have a right to “Quiet Enjoyment.” This doesn’t just mean freedom from noise; it means freedom from disturbance. A protective agreement will mandate a specific notice period and require that the visit be for a valid reason (inspection or repair) and occur at a reasonable time.
Red Flag #3: The “No Exit” Handcuffs
The Danger: Life is unpredictable. You might sign a one-year lease, but six months later, you lose your job, face a medical emergency, or get transferred to a different state for work.
In many “standard” agreements, there is no escape hatch. If you leave early, you are often liable to pay the full rent for the remaining months. If you have six months left on a RM2,000/month lease, that is an RM12,000 debt hanging over your head for a house you can’t even live in.
The Solution: A modern, tenant-friendly agreement should include what is often called a “Diplomatic Clause” or a forceful termination clause for unforeseen circumstances. This allows you to end the tenancy early without a massive financial penalty if you can prove you are being relocated for work or facing genuine hardship.
Red Flag #4: The Ambiguous Deposit Trap
The Danger: This is the number one complaint among Malaysian tenants: “My landlord won’t return my deposit.”
You move out, leave the place spotless, and hand over the keys. Then… silence. Weeks go by. When the landlord finally replies, they claim they are keeping your 2.5 months’ deposit to cover “repainting” or “general cleaning,” even though you left the place clean.
The danger lies in agreements that do not set a deadline for the refund or do not define what deductions are valid. If the contract doesn’t say when you get your money back, the landlord can hold it indefinitely while they “calculate costs.”
The Solution: Your agreement needs a strict timeline. It should state that deposits must be returned within a set period (e.g., 14 to 60 days) after the tenancy ends, provided bills are paid. It should also explicitly state that the deposit cannot be used to upgrade the unit—only to fix damage caused by you.
Red Flag #5: The “Sold Out From Under You” Scenario
The Danger: The property market is active, and landlords often sell their units. But what happens to you if the house is sold halfway through your lease?
In a poorly drafted agreement, the sale of the property might automatically terminate your tenancy. The new owner might want to move in immediately, giving you only a few weeks to pack up your entire life and find a new place. This instability is a nightmare for families or anyone craving stability.
The Solution You need a clause that ensures the Tenancy Survives the Sale. This means that if the landlord sells the property, the new owner legally steps into the shoes of the old landlord. They must honor your existing contract, rent amount, and expiry date.
The Easy Way to Stay Protected: The DIYa Solution
Identifying these red flags is one thing; arguing with an agent or landlord to rewrite legal clauses is another. It can be intimidating, and many tenants back down because they don’t know the correct legal wording.
This is why we created the DIYa Pro-Tenant Agreement Pack.
We believe you shouldn’t need a law degree to rent a home safely. Our templates are pre-drafted to solve every single one of the problems listed above, ensuring a fair balance between you and the landlord.
Here is how the DIYa Agreement protects you:
- Fair Repairs: Section 5 explicitly states the Landlord is responsible for structural repairs, wiring, and piping, protecting your wallet from unfair maintenance costs.
- Guaranteed Privacy: Section 7 requires the Landlord to give you at least 48 hours’ written notice before entering, so you never face surprise visits.
- Safety Net for Early Exit: Section 16 includes a compassionate clause. If you are relocated for work or face medical hardship, you can terminate the agreement early without paying compensation.
- Secure Deposits: The agreement clearly outlines that deposits are refundable and sets conditions for deductions, preventing the landlord from treating your deposit as their personal bonus.
- Sale Protection: Section 19.7 ensures that if the property is sold, the new owner must take over the agreement, allowing you to stay until your term ends.
Plus, you get the Guidebook. We don’t just give you a contract; we give you a manual. The DIYa Tenant Guidebook explains every section of the agreement in plain English, offering practical tips on how to handle inspections, utility bills, and handovers.
Don’t leave your home or your money to chance. Start your tenancy with confidence.
