Simple Shop Rental Agreement Template for Malaysia

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Key Requirements PROMPT example:

Simple Shop Rental Agreement

"I need a Simple Shop Rental Agreement for a bakery business in a shopping mall in Kuala Lumpur, with a 3-year term starting March 1, 2025, including specific provisions for food preparation premises and early morning operating hours."

Document background
The Simple Shop Rental Agreement is a fundamental legal document used in Malaysian commercial property transactions to establish a clear contractual relationship between landlords and tenants for retail premises. This document is particularly relevant when leasing shop spaces in commercial areas, shopping centers, or standalone retail locations throughout Malaysia. The agreement incorporates essential elements required under Malaysian law, including provisions from the National Land Code 1965, Contracts Act 1950, and relevant state-level legislation. It covers crucial aspects such as rental terms, security deposits, maintenance obligations, and permitted use of the premises, while remaining straightforward enough for small to medium-sized business operations. This agreement is commonly used for new retail establishments, franchise locations, or when transitioning existing informal arrangements into formal documented agreements.
Suggested Sections

1. Parties: Identifies and provides full details of the landlord and tenant, including registration numbers for companies or NRIC for individuals

2. Background: Brief context about the property and purpose of the rental agreement

3. Definitions: Defines key terms used throughout the agreement

4. Demised Premises: Detailed description of the rented property, including its address and boundaries

5. Term and Possession: Duration of the lease, commencement date, and possession details

6. Rental and Payment Terms: Monthly rental amount, payment method, due dates, and security deposit details

7. Utility Charges: Responsibilities for payment of utilities, including electricity, water, and other services

8. Use of Premises: Permitted use of the shop premises and any restrictions

9. Maintenance and Repairs: Responsibilities of landlord and tenant for maintaining and repairing the premises

10. Insurance: Requirements for insurance coverage by both parties

11. Default and Termination: Circumstances constituting default and procedures for termination

12. Governing Law: Confirms Malaysian law as governing law and jurisdiction

Optional Sections

1. Option to Renew: Terms for lease renewal, used when parties want to include the possibility of extending the lease

2. Renovation and Alterations: Terms for making changes to the premises, included when tenant requires significant modifications

3. Assignment and Subletting: Rules regarding transfer of lease or subletting, included when these activities need to be specifically addressed

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

5. Break Clause: Early termination provisions, included when parties want flexibility to end the lease early

6. Guarantor: Details of guarantor and their obligations, used when additional security is required

7. Trading Name and Signage: Rules about business naming and signage, important for retail premises

8. Common Areas: Rights and obligations regarding shared spaces, relevant for shops in shopping complexes

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property including floor plans and measurements

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the rental

3. Schedule 3 - House Rules: Building or complex rules and regulations if applicable

4. Schedule 4 - Rental Payment Schedule: Detailed breakdown of rental payments, including revision dates if applicable

5. Appendix A - Handover Form: Condition report of premises at handover

6. Appendix B - Permitted Modifications: Approved alterations or renovations if any

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Retail

Real Estate

Commercial Property

Shopping Centers

Food & Beverage

Fashion & Apparel

Professional Services

Small Business

Property Management

Legal Services

Relevant Teams

Legal

Property Management

Real Estate

Operations

Facilities

Compliance

Asset Management

Retail Operations

Commercial Leasing

Administrative

Relevant Roles

Property Manager

Retail Operations Manager

Legal Counsel

Real Estate Agent

Business Owner

Franchise Manager

Leasing Executive

Commercial Property Officer

Compliance Manager

Facilities Manager

Store Manager

Asset Manager

Property Administrator

Retail Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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