Rehda And KPKT Working On Proposed Residential Tenancy Act
Datuk Soam Heng Choon, Real Estate and Housing Developers Association Malaysia (Rehda) president, revealed that the proposed Residential Tenancy Act is being worked on by the association alongside the Housing and Local Government Ministry (KPKT).
“We have been having meetings. We have appointed a consultant on board and they are working on formulating the Act. There’s been a lot of discussions,” he said.
The Act, aimed at protecting both tenants and landlords during any dispute that may arise within a tenancy period, was first announced in April by the Ministry, reported The Edge Markets.
KPKT expects a study of the Act and data-gathering exercise to be finished by this year, to be then followed by the Act’s formulation next year.
“The Act is a long time coming. It should have been around much earlier but it’s never too late. If you look at the US, it’s quite robust. Any late payment of rental will require further interest and people will pay. Because there’s a law that enforces it. That’s why we need the Act,” added Soam.
He further explained that tenants will also benefit from the proposed Act as insurance premiums are expected to be decreased.
“There will be fewer claims as the Act will help settle any issues via a tribunal. Therefore, you can then utilise the premium to insure other household things, which currently seems an underrated practice amongst Malaysians,” he said.