Rent To Rent Contract Template for Malaysia

The Rent To Rent Contract is essential for property arrangements in Malaysia where a primary tenant seeks to profit from managing and subletting a property. This document is used when a business or individual wants to lease a property from its owner and then rent it out to sub-tenants, typically for a higher yield. The agreement must comply with Malaysian property law, including the National Land Code 1965 and relevant tenancy regulations. It covers crucial aspects such as primary lease terms, subletting rights, maintenance responsibilities, rental payments, and dispute resolution procedures. This arrangement is particularly popular in urban areas where there's high rental demand and opportunities for short-term lettings or serviced accommodation.

1. Parties: Identification of the Property Owner (Landlord), the Primary Tenant (Rent to Rent Operator), including full legal names, addresses, and registration numbers if companies

2. Background: Context of the agreement, explaining the rent to rent business model and the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Head Lease', 'Sub-lease', 'Rental Period', 'Management Services'

4. Grant of Lease: Terms of the primary lease agreement between property owner and rent to rent operator

5. Right to Sublet: Explicit permission and terms for subletting the property, including any restrictions or requirements

6. Duration and Renewal: Term of the agreement, renewal options, and notice periods

7. Rental Payments: Details of rent amount, payment schedule, payment methods, and review mechanisms

8. Deposits and Securities: Requirements for security deposits, handling of deposits from sub-tenants

9. Property Management Obligations: Responsibilities of the rent to rent operator in managing and maintaining the property

10. Insurance Requirements: Insurance obligations for all parties, including building insurance and contents insurance

11. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements

12. Compliance Requirements: Obligations to comply with relevant laws, regulations, and safety standards

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Dispute Resolution: Procedures for handling disputes between parties

15. Governing Law: Specification of Malaysian law as governing law and jurisdiction