When a tenant refuses to leave

Purchasing a sub-sale property occasionally comes with a tenant included as part of the deal, according to the agent anyway. But what happens when all the documents are done and dusted, and then the tenant changes his/ her mind and refuses to leave?

Evictions happen more often than one might think, and the ensuing processes are some of the most headache-inducing, therapy-requiring tasks in the history of mankind.

how do cases like this even occur? sometimes, loopholes are present in documents like tenancy agreements.

As the legal contract between a landlord and a tenant, the papers outline every duty and obligation of each party while the tenancy is valid. It is extremely important to draft a well-written tenancy agreement. It might sound like the most obvious thing in the world, yet issues like these still prevail even today.

Understanding tenant’s rights

Before taking any measures, property owners need to grasp the rights afforded to tenants. Legal frameworks in most jurisdictions provide protections against unlawful eviction, which means that landlords must adhere to established protocols before evicting someone.

Ignoring these regulations can lead to legal repercussions, including financial penalties and potential lawsuits. Familiarising youself with the local tenantlandlord laws can help property owners avoid headache-inducing pitfalls.

The next course of action

■ Legal fees in eviction cases can reach up to RM30,000

■ Six months typical for case settlement

■ Keep detailed records of all interactions, payments and formal notices

should involve a thorough review of the tenancy agreement linked to the property.

As described by law firm Kevin Wu and Associates in their article titled “Tenancy Law in Malaysia: Evicting Tenants”, a tenancy agreement is a binding contract between a tenant and a landlord which outlines the rights and responsibilities of each party during the tenancy period. The tenancy period is usually created for a term which does not exceed three years, otherwise, it will be considered as a lease.

If the tenancy period has expired, they can issue a Notice to Quit, which formally requests the tenant to leave by a specific date, typically allowing a reasonable timeframe based on local regulations.

however, if the tenancy agreement is still active, the landlord will have to wait until its expiration or may need to explore other options, such as negotiating an early termination.

A Notice to Quit must be drafted per the specifics of the tenancy agreement and any local regulations, so consulting a real estate attorney is advisable.

This step ensures the notice is legally sound and appropriately delivered, protecting the landlord from potential disputes.

In the event the tenant does not move out of the rented property after the notice period ends or after the tenancy is terminated, and without the landlord’s consent, the tenant is liable to pay to the landlord double the rental payable under the tenancy pursuant to section 28(4) (a) of the civil Law Act 1956.

Attempting peaceful resolution

Often, proactive communication can help pave the way for a more positive and friendly resolution. Initiating a conversation with the tenant to discuss their situation and the possibility of vacating might be all it takes.

Offering flexible timelines or even financial incentives, such as a relocation bonus, or help with moving costs, can make the transition smoother for everyone involved. Establishing a cooperative dialogue mitigates stress and fosters goodwill, allowing both parties to reach an agreeable outcome.

If attempts at negotiation do not get the desired results and the tenant remains stubbornly uncooperative, seeking legal advice becomes paramount.

An experienced attorney specialising in landlord-tenant law can guide the property owner through the intricacies of the eviction process, from drafting necessary legal documentation to representing them in court if the situation takes a turn for the worse.

should legal proceedings become inevitable, initiating a lawsuit may involve filing a claim in a local court and subsequently obtaining a court order for eviction.

It is important to keep in mind that these processes can be time-consuming, sometimes stretching over several months and may lead to increased frustration and anxiety for property owners feeling trapped in their predicament.

The financial and emotional toll

The financial ramifications of an eviction can be substantial, adding to the overall stress of the situation. Legal fees can accumulate quickly, especially if the case drags on or requires multiple court appearances.

several studies have found that the fees can reach up to rm30,000 and the eviction process could drag on for half a year.

Additionally, there’s always the potential risk of property damage. In some unfortunate scenarios, tenants may do intentional harm to the property during their exit, resulting in costly repairs and delays in re-renting or selling the unit.

The emotional toll can also be significant. The anxiety, frustration and uncertainty in dealing with a non-compliant tenant can weigh heavily on property owners, making it difficult for them to focus on other aspects of their lives.

understanding that it’s normal for property owners to feel overwhelmed in these situations can be helpful, so seek out support from friends, family or even groups of fellow landlords who can provide the necessary guidance and reassurance needed.

Be proactive

To reduce the risk of facing similar challenges in the future, property owners should consider using several proactive strategies. First and foremost, thorough tenant screening is crucial.

conducting comprehensive background checks that include evaluating rental histories, credit scores and personal references can be beneficial.

A well-informed decision at the outset can minimise the likelihood of disputes later on.

Additionally, it is vital to draft a clear and comprehensive tenancy agreement that explicitly outlines all terms and conditions related to the lease.

This should cover aspects such as payment schedules, maintenance responsibilities, acceptable behaviour standards and clear procedures for termination.

A well-defined agreement can help forestall misunderstandings and promote clarity among both parties.

Maintaining open lines of communication with tenants is also essential. regular check-ins can help address any concerns they may have before they escalate into larger issues.

Moreover, keeping detailed records of all interactions, payments and formal notices can further protect property owners in any future disputes.

By SAMANTHA Wong samantha.wong@thestar.com.my

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Bursa Malaysia chairman Tan Sri Abdul Wahid Omar

 KUALA LUMPUR: Malaysia is in a “sweet spot” for economic growth and investment, with the “stars aligning” in its favour, according to industry leaders and market analysts.

This optimism stems from the country’s robust macroeconomic fundamentals, improving investment climate and strategic positioning in the global supply chain.

Maybank Investment Bank head of regional equity research Anand Pathmakanthan highlighted Malaysia’s acceleration in gross fixed capital formation, driven by a blend of domestic direct investment (DDI) and foreign direct investment (FDI).

“The good news is it’s not just FDI, it’s also DDI, which is far more important in terms of job creation and tax generation,” he said during his presentation at the Institute of Chartered Accountants in England and Wales Economy Insight Conference 2024 yesterday.

Anand said for the last 10 years, local companies have not been investing, which has a lot to do with political instability.

“They’ve been investing less and less in Malaysia, which is always a bad sign for any country,” he said.

But in the last two years, he said Malaysia is seeing a recovery in DDI.

“The recovery in DDI reflects the confidence that domestic businesses are feeling better about the environment. That (DDI) is going to be a key support when issues about trade crop up next year with Trump 2.0,” he said.

Meanwhile, Anand said Budget 2025 is “very well-balanced,” emphasising initiatives to crowd-in private sector investments.

He projected continued economic growth, supported by a civil service pay hike, minimum wage increases and enhanced cash handouts, which would sustain domestic consumption in 2025.

“Malaysia is in a very sweet spot, especially when it comes to attracting supply chain relocation and FDI,” he said.

Anand projected Malaysia’s gross domestic product (GDP) to conclude at 5.2% in 2024 and 4.9% in 2025, outpacing the Asean-6 regional average of 4.8% in 2024 and 4.7% in 2025.

Affin Bank Bhd president and chief executive officer Datuk Wan Razly Abdullah echoed the optimism, projecting GDP growth of 5.2% in 2025, up from the bank’s projection of 5% for this year.

He attributed this to stable oil prices, elevated crude palm oil (CPO) prices and active construction and technology sectors.

“The elevated price of oil and CPO will provide good income streams,” he said, adding that Johor and Klang Valley developments would boost the property sector.

“The stars are aligning for Malaysia thanks to our stable political environment and strong FDI flows.”

Wan Razly also expressed bullishness on the ringgit, predicting it to strengthen to RM4.10 against the US dollar by end-2025, supported by the US Federal Reserve interest rate cuts.

Adding to the optimism for Malaysia’s economic prospects, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar highlighted the robust performance of the local bourse, driven by a favourable investment environment and strong macroeconomic fundamentals.

“Malaysia has been a vibrant market for initial public offerings (IPOs) this year. Up to the end of November, we had 47 listings that raised a total of US$1.5bil. By year-end, we expect to close with 54 or 55 listings,” he said.

He noted that the average daily trading value for 2024 has increased by over 50% year-to-date, reaching approximately RM3.1bil.

Abdul Wahid believes this momentum will be sustained into 2025, with 19 IPO approvals in hand for next year.

“Looking at the pipeline, I think 2025 should be another good year,” he said.

He said “the overall good macroeconomics are being translated into the real world and capital markets,” coupled with a shorter processing time for IPO listings of just three months.

Separately, Abdul Wahid said Malaysia should further tap into the Asean market and leverage its strategic advantages, as the regional bloc is well-positioned amidst global uncertainties, particularly ahead of the United States’ tariff threats on China.

Abdul Wahid urged Malaysia to continue to pursue its relationship with Asean in a pragmatic and constructive manner to further capitalise on the bloc’s 670 million consumers.

“The biggest potential that we have is in Asean. Our trade and investments (in the bloc) is relatively low compared to other trade partners and that can be enhanced further,” he said.

Abdul Wahid also emphasised that Malaysia should not be mutually exclusive to any specific trade groupings, trade talks or bilateral agreements and should focus on further strengthening trade relationships.

In the realm of inflation, both Anand and Wan Razly anticipate a rise to 3% in 2025, up from the current 1.9%, mainly due to the targeted petrol subsidy scheduled to take effect mid next year.

Despite the projected uptick, both of them said Malaysia’s inflation rate will stay within a healthy range, underpinned by strong macroeconomic fundamentals and effective policy measures.

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Unlocking bond yields for retirement

 

A solution must be found to help retirees get hold of smaller portions of decent-yielding corporate bonds Retirees can also close the gap on their replacement rate through investment funds that pay out dividends monthly

ONE of the best ways for retirees to secure a good income replacement rate is by generating decent yields from their investments.

The replacement rate refers to the percentage of a person’s pre-retirement income that is replaced by retirement income.

A reliable source of this yield can come from corporate bonds.

However, for those looking to tap into such investment products, getting your hands on decent-yielding corporate bonds is not easy.

The reason for this is simple: access to these bonds often seems to be reserved only for the banks’ rich clientele through their private wealth management services.

For instance, bonds issued by local banks or blue-chip corporations that yield around 6% to 7% annually typically require a minimum investment of about RM250,000.

But why are these bonds not sliced and diced for the man on the street?

Some argue that banks, which manage the issuance and sale of these bonds (just like they handle initial public offerings), take all for themselves and their wealthy clients.

Banks, in turn, claim that there just isn’t enough corporate bonds coming into the market.

Incidentally, government debt papers, which are highly secure, typically do not provide sufficiently high yields to make a meaningful difference for retirees.

A solution must be found to help retirees get hold of smaller portions of decent-yielding corporate bonds.

Additionally, another way to boost yields for retirees and close the gap on their replacement rate is through investment funds that pay out dividends monthly.

This is a healthy, growing trend among issuers, and more unit trust and asset management companies should follow suit.

Finally, while the unit trust market has made strides in lowering fees – a thorny, ongoing issue – some players still charge too much.

Regulation should be introduced to ensure that the man on the street does not get unfairly charged for products that he or she relies on to provide income during retirement

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Beef up cybersecurity now

 

Cyberattacks likely if action not taken, says bukit aman

KUALA LUMPUR: Companies and organisations must beef up cybersecurity to prevent breaches and cyberattacks, says Bukit Aman.

Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf (pic) said cyber attacks are quite prevalent worldwide with millions of attacks per year and tens of thousands daily.

“Thus, it is imperative for companies and organisations to beef up their cybersecurity systems such as firewalls to prevent breaches.

“If it is not done, sooner or later, an organisation or entity might face a cyberattack,” he told The Star recently.

Comm Ramli said the CCID is working closely with other agencies such as Cyber Security Malaysia and the Malaysian Communications and Multimedia Commission to take action on data breaches.

He said the CCID managed to bust a syndicate that attempted to sell stolen data in September.

“We detained five men, including a Pakistani, in an operation codenamed Ops Kapas, with other agencies, including Cyber Security Malaysia.

“The syndicate stole 400 million pieces of data of Malaysians, including names, MyKad, addresses, bank accounts and phone numbers.

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“They had hacked systems used by companies and agencies to obtain the data.

“Those who want access to the data are charged between RM200 and RM800 per month,” he said.

(Click To Enlarge)

Investigations showed the syndicate was operating for about a year.

“Two of those detained – a Malaysian and a Pakistani – were a web portal designer and a hacker.

“Three other individuals were agents and unlicensed debt collectors, who bought the stolen data,” he said.

Investigations showed the Pakistani man as the syndicate’s mastermind due to his hacking skills.

“We believe he entered Malaysia as a general worker 10 years ago,” he said.

Comm Ramli said syndicates are using the “shadow world” of the Internet to look for potential customers of the stolen data.

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“The syndicate would sell the stolen data on the dark web to other syndicates such as scammers as well as unlicensed debt collectors,” he said.

Meanwhile, checks by The Star on the dark web showed that transactions are made using cryptocurrency, particularly bitcoin, which makes following the money trail difficult.

Among the finds on the dark web was the alleged sale of staff members’ and customers’ data of a low-cost airline.

Another search result showed that hackers have sourced the login ID of users of different banks from different countries and were promoting their service which includes transferring any amount of money for a fee.

“We have gathered bank logins of different banks and countries as a result of automated Malware/Trojan we spread online once the individual logs into his/her online banking account, it grabs the person’s banking details, it is very powerful and can get access to accounts, bank database and bank server,” the promotional literature of the service read.

(Click To Enlarge)

“With these services, you just place an order to get any amount you need and we will look up the bank login we have available and make transfers to any account you provide.

Our services are efficient, reliable and safe,” it said, adding that bank transfers are available to countries such as Malaysia, the United States, the United Kingdom, the United Arab Emirates, Canada, Australia, Netherlands, China and Switzerland.

These hackers are charging US$450 (RM1,990) for bank transfers amounting to US$2,000-US$4,000 (RM8,848-RM17,696); US$750 (RM3,318) for bank transfers amounting to US$5,000-US$7,000 (RM22,122-RM30,969) and US$1,050 (RM4,645) for bank transfers amounting to US$8,000-US$10,000 (RM35,393 - RM44,241).

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