5/30/2019 Real Estate Seminars - 30 May 2019,Thursday TENANCY ADMINISTRATION For ESTATE AGENTS From this seminar, you will know the following, Understand what Tenancy Administration (TA) is all about and how it could assist and complement your leasing and rentie@ properties and inthe process helps you to further serve your clients ca Acknowledge that TA now forms part and parcel of an estate agent scope of work as stipulated and allowed for under Act 242 ca Mindful that TA standard will be drafted to be incorporated into the Malaysian Estate Agent standards as part of the professional scope of work of an estate agent. @5/30/2019 From this seminar, you will know the following cg Learn on the general scope of work for TA and how to distinguish between the leasing and renting activities and the management functions of TA. c& Management skills and good sense of responsibilities are pertinent for TA a Proper documentation is key to provide better accountability ©& Can be lucrative business if properly undertaken and can strengthen the leasing and renting efforts INTRODUCTION ee Act 242 Section 22B Subsection (1A) (e) allows for Tenancy Administration ca Tenancy Administration Services include 1. Rental Collection 2. Payment Of Outgoings 3. Arrangement for minor repairs 4, Handing over and taking over the possession of a property of any land and buildings and of any interest therein a5/30/2019 WHAT IS TENANCY ADMINISTRATION G3 What Do You Know About Tenancy Administration ca Have You Been Doing It? @ Do You Know It Is Illegal Before 2"4 Jan 2018 ca Which Group Of Professionals Have Been Doing It? ca New Opportunity To Earn Extra Income WHO NEEDS OUR SERVICES ca Property Owners who are foreignei ca Property Owners who are Malaysian but Residing overseas ca Family owned portfolios where none of them want to manage cg Property Investment groups Developer balance units ca Companies who engage a lot of expatriatesa 5/30/2019 j, PROFESSIONAL FEES PROFESSIONAL FEES caThe Fee Is Applicable To Each Holding caGross Rent Means The Rents Reserved Or Deemed To Be Reserved By The Lease Or Lettings Plus Any Incidental Receipts Collected Or Accounted For Or Both In The Course Of Management a aud5/30/2019 cz Payment Of Outgoings cz Ensure Tenant’s Compliance & Attend To Tenant's Request & Complaints © Sort Any Issues At The End Of Tenancy ca Monthly Reports & Premise Inspections «2 Negotiate Tenancy Extension 2 Other Services5/30/2019 REMINDER LETTERS Ba firey CG [insert Tenant's Name) Z Emit: 7 FIRST REMINDER Dear Siv/Madam, RENTAL PAYMENT DUE Tenant Tnsert Nomad Landlord: [Insert Name] Property Cinsert Property Detail) REMINDER LETTERS We refer to the tenancy agreement between GBiie Landlord dated Insert Tenney Agreement oie) in regards to the property mentioned herein, Your rent amounting (RM. J for the mouth of finsert month] was due on [Insert Rental Due Date). Should you fail to make payment within 7 days from the date of this letter, necessary action shall be taken to enforce your obligations under the tenancy agreemeat. In the event payment has been remitted, kindly forward us the transmittal receipt or bank-in-slip for our record purposes.5/30/2019 REMINDER LETTERS ‘Should you Fequlie say Tefomation or NGG, plows conser we Registered Extare Ageat BuNNe (Contacto 015 REMINDER LETTER - 24 Reminder We refer to our letter to you dated [Insert date of First Reminder] Please be reminded that your rent amounting RM ] was due on [Insert Rental Due Date]. We have yet to receive any payment from you. Should you fail to make payment within 7 days from the date of this letter, legal action shal be taken to enforce your obligations under the tenancy agreement dated /bisert Tenancy Agreement Date). Should you require any information or clarification, please contact at O1X- XXXXXXX or email Kindly acknowledge at the indicated space below upon receiving this notice5/30/2019 REMINDER LETTER - Final Reminder We referto our letter to you dated [Tasert date of Second Reminder] and earlier letter dated [Insert date of First Reminder]. Please be reminded that your rent amounting (RM____] was due on [Insert Rental Due Date]. We have yet to receive any payment from you despite two reminders were sent to you, Should you fail to make payment within 7 days ftom the date of this letter, legal action shall be taken to enforce y obligations under the tenancy agreement dated [Insert Tenancy Agreement Date] and all costs and expenses of such shall be borne by you. Should you requise aay information or elatificatio XXXXXXX or email please comtact at O1X- Kindly acknowledge at the indicated space below upon receiving this notice. IF TENANT REFUSE TO PAY RENT ©& 1. NOT allowed to lock Tenant out of premise or forcibly evict them. ca 2. Itis illegal, regardless of whether you have lodged a police report or not. 23. May have to pay a hefty price because Tenant may sue for trespassing. ca 4, Further complications if Tenant claim valuable assets are lost.5/30/2019 SUE FOR RECOVERY OF POSSESSION ca T Landlord need to obtain (9G order to recover possession of the premise from the Tenant according to Section 7(2) of the Specific Relief Act 1950. ca 2. Tenancy Agreement allow for recovery of possession but Notice to Quit to the Tenant must be issued. a 3. The Notice must include @ a. demand settlement of outstanding sum c@ b. restore the premise to original condition © c. vacate within reasonable time. (at least one month’s notice) parks Pend AT If Tenant refuse to vacate after expiry of Notice to Quit ca 1. Under Section 28(4) (a) ©PSivil Law Act 1956, Landlord is entitled to charge double rental after termination until possession is given up by Tenant. ca 2. If Tenant refuse to budge, then proceed to file civil suit to claim for 2 a, the outstanding rental ca b. double rental ca c. recovery of possession and other appropriate reliefsZeumbus—> ithe to Gut > bette oF liv ls 5/30/2019 If Tenant refuse to vacate after expiry of Notice to Quit a3. After judgement is hte in your favour, you can proceed to apply for writ of possession. ca 4. Court bailiff will then execute by entering the premise using such force as may be necessary. «5. This legal proceeding will typically take 4 to 9 months depending on the complexity of the matter and whether the Tenant contests the civil suit. Votan Uk for small (5h yb File for Writ of Distress ca 1. Distress proceedingt<@Ssume less time compared to civil suit, generally about 3 months. cg 2.Main feature is the application for writ of distress is to be made ex parte. Do not have to inform Tenant after you have filed for distress proceedings. 3. Tenant will know when bailiff comes to premise and distrains the Tenant’s movable properties found on the premise. Le pase > char bow Po 04 fret 105/30/2019 File for Writ of Distress «a4. Tenant will be caughtbPsurprise and usually settle the rent in arrears or reach amicable settlement with the Landlord. 85. Distress proceedings are generally not for recovery of possession but to recover rent in arrears (for period not exceeding 12 completed months of Tenancy immediately preceding the date of application) File for Writ of Distress 2 6, oats charges are not recoverable under distress proceedings. 8 7. Only instance where distress order allows Landlord to take possession of the pe is when the Tenant has deserted the premise. Proof of desertion must be produced. 8. Tenant usually do not want their movable properties seized by bailiff to sell via auction in front of the premise. a5/30/2019 File for Writ of Distress c 9. In negotiation for settlement, Landlord can make delivery of possession as condition of settlement. If Tenant agree then Landlord not required to go through lengthy civil suit to recover possession. Recent Development ca 1. Government looking at new Residential Rent Act. 2. Potentially setting up a tribunal to resolve disputes between Landlords and Tenants. 3, Setting up of a National Tenancy Database ca 4. Public register for Landlords. 12Fare omy 5 ot ms = OSS essncry 3 fe 5/30/2019 MC = de fas ore A b/o Comm 30 Omel rune & re PAYMENT OF 2° 2” |} OUTGOINGS Soe aren caer sca = aio. Payment Of Half Purchase Of Fire Serie eee Sieur Payiment Fo Contractors =Pool & ‘Garden Maintenance = Seana enti Gre eee Dab ane fe Merny Pow te clap Se OF tral wees wcenh f oe OD Peted & ue et pred far tras by 0 bulang GB baer 7 of page 4 % Yu > fate 4 Spende Mey fer tal Re & tape, — D4 bonrol oghioy AME ENSURE TENANT'S COMPLIANCE & Check for Sub-Letting ca Compliance to House Rules - Pets ete @ Servicing of Air-Conditioners ca Replacement and repairs of damaged / spoilt items ~ non structural ca Compliance & obtainment of necessary licences from Authorities for business premises5/30/2019 ATTEND TO TENANT’S REQUEST & COMPLAINTS caAttend To Complaints Within Reasonable Time caAssess Complaints & Recommend Actions To Be Taken crEngage Contractors For Quotations caMonitor Progress Of Repairs crArrange Payments To Contractors a Attend to tenant's 145/30/2019 SORT ANY ISSUES AT END OF TENANCY c Preliminary Assessmen(itepairs Needed prior to Moving Out ca Engage Contractors for quotations to restore premises cx Negotiate agreement between Tenant & Landlord ony, repairs = ca Check Out process ca Monitor Repair Works c@ Arrange Payment to Contractors ce Arrange Refund of Deposits to Tenant Flowchart at expiry of tenancy 155/30/2019 MONTHLY REPORTS & INSPECTION ca Monthly Reports will be rea covering 1. Rental Collection Renewals due Payments made for Outgoings Record of Tenant's Request Record of Tenant's Complaints & Actions Taken Scheduled Inspections carried out and Comprehensive Report prepared aye eD NEGOTIATE TENANCY G ges couteuee = nner ccstcseneoesnmice s & Recommend New Rates- 165/30/2019 OTHER SERVICES dk OPO pal pousston, ca Background check on Tenants -7 ©? & Monthly visit to Vacant Units to check on conditio: mails/ bills snd & Assist Tenant for Furniture Rental see ca Termination & Reconnection of Utilities Supply 3 Applications for Internet & Astro Connections PROFESSIONAL FEES — 9g eS * Terms of Contract tes 1, Exclusive Agents for Letting-minimum One Month’s Rental 2, Extension of Tenancy - Half Month’s Rent 3. Monthly Management Fee - RM XXXX + Income Potential - Rental RM10,000 per month 1. Professional fee for securing Tenant ~ RM10,000 2. Monthly Management Fee - Say 8% = RM800 per month 3. Extension of Tenancy - RM5,000 75/30/2019 LETTER OF APPOINTMENT [Pate] CS [Insert Name] [Address Line 1] [Address Line 2] Address Line 3] At’ Dear SirlMadam, Re: APPOINTMENT AS TENANCY MANAGER Property: insert property details} LETTER OF APPOINTMENT ‘We refer to the above. ¢ S ——~:;,.SCSCS7S 73 3}TCtSF We, hereby offer to bo your Tenancy Manager in respect of the abovesaid Property upon the following terms and conditions: - 1. Appointment: Our appointment 2s your Tenaney Manager in respect ofthe management and operation of the Property shall be with effect from the date of your acceptance ofthis letter of appointment. During the term ofthis appointment, you shell not appoint any other person to act as your Property Manager in respect ofthe Property 2, Property: Our appointment shall be as the Tenancy Manager in respect ofthe abovesaid Property. 3. Scope of Work/Responsibilities: Our scope of work and responsibiltes as the Tenancy ‘Manager shall be as provided in the Appendix A to ths letter. 185/30/2019 1 LETTER OF APPOINTMENT Faee’ In consideration ofthe services @ SY griomed unde ths Agreement, ourface shall be as follows: (2) Management Fee ()) For tenanted properties a minimum fee of RNXXX per month or XX% of the monthly ‘ental whichever Is the higher. For untenanted unit a minimum fee of RMXXX per month, (i) The above mentioned fees shall be payable to Us within fourteen (14) days from date of our invoice to you, any late payment for the management fees will incur 10% late Payment iniorest charge. This agreement shall be subject to revision after twelve (12) months from the date of commencement ofthis Agreement. The abovementioned fees Subject to Sales and Service Tax (SST) LETTER OF APPOINTMENT Til) You shall Geposit with Client's account the sum of RMXNOOXK as float payment on account which shat Betitilized for the purposos of the service only. You shall make further payment on account within 14 days of notification when the balance is below RMXXXXX. All unutized deposit (without interest) shall be refunded upon termination of this appointment. Disbursement & Qutof-Pocket Expenses: The owner shall be responsible for any disbursement and out-of-pocket expenses inourred by in the management of the Property including travelling expanses for sie Inspection, postage and related matter Pertaining to the administration of the said property. irs, Maintenance & Roplacements: We shall recommend and supervise such repairs, maintenance and replacements as we deem necessary to put the Property in a tenantable condition with all expenses Incurred in respect of any repairs, outfitting and renavation earried out on the Property to be borne by yourself PROVIOED ALWAYS THAT hho such works shail be carried outor expenses inourred without your prior writton approvel. A supervision fees of 5% from the total repair east of RMS,000.00 and above Will ce. charges for ay repair work which need to monitored by us, 195/30/2019 LETTER OF APPOINTMENT Propurement: For any work below PAUSGO.00, we shall proceed accordingly wih one quotation after negotiation for a reasonable cost. In the event that the cost is more than M2, 000.00, 3 quotations shal be sought for your consideration and decision. Insurance: At your instruction, we shall procure and maintain, at your expense, such insurance (as we deemed appropriate and required) in respect ofthe Property. Property Maintenance Fees: You shall be responsible for all maintenance or management fee payable to the management corporation, management committee or such management body having jurisdiction over the management or maintenance of the Property and shall pay such management fee payable within fourteen (14) days from the date ofthe issuance of the notice forthe payment of such management fee. LETTER OF APPOINTMENT ition: All real estate toxos sonal propery taxes, retes, levies, custom ac fens, study on Soecents rc soa CharGas on or Felating to the Pronerty (collectively, Impositions’) during the Teh belgais at your Sipenge before any fie, pensity, oF intarant ie aded or hen place upon the Property Ip the event of your falure to satla or nay such management fee/impostions by ine due efsny sunonsed to settle such outstanding management fee/impeshions on ‘tram the montnly renial, which We receive oF collect fom the tenant of Me Default & Termination: lat any time, you shall breach or fal io observelperform any of the terms andi conditions set outin il eter of offer (inetading the Appondle), we shall reserve our right forthwith Setarmine and terminate the appoiniment herein withaut furner novice to You Notwithstanding our right to forthwith determine and terminate the appointment nerein upon bp Setaut on your part we may issue a writen neleo ta you raquiing that you rammed any Brsach winie 14 days fran ine date of the writen netics falas Upon our termination #8 your Property Manager, you shell be required to pay to us all Dutstanding amount payable rary) payable whereupon the payment of such 205/30/2019 LETTER OF APPOINTMENT Outstanding amount, we shall return | keys, balance of any funds in respect of the Property and the possession of the Property to you but without prejudice to the our Tight of action in respect of any breach by you of the appointment set out herein. Indemnity: You shall indemnity and hold us and our officers, directors and employes harmless from and against all and any claims, demands, liabilities, obligations, losses, damages, legal proceedings, judgements, costs and/or expenses (including, without limitation, legal fees and litgation costs and expenses) and damages inclucing, without limitation, consequential, punitive, exemplary, and other damages) relating to or arising from or in connection with our management of the Property save and except for any gross negligence and default on our part. 2, LETTER OF APPOINTMENT — atime CY ———— (@) Any not ackiressed to you and left at or sent by post tothe latest address provided to us by you. \witing required to be served shall be sufficiently served on you if (b) We shall not be fable for any damage, theft, or loss of any property, goods, article or things whatsoevar placed, deposited, brought into or left upon the Property (©) _Nointerest shail be claimabie by you for any ate payment or ollection of rental due to the delay by the Tenant (@) You shalt be liable to pay penalty interest or any other payments imposed on tate Payment of the outgoings (service charge, sinking fund, quit rent, assessment, Insurance and other relevant payment) due to Insufficient fund in our client's account. (e)Itis your responsibilty to file your taxes. shall not be responsible in advising, handling or fling taxes related fa your rental income. 215/30/2019 LETTER OF APPOINTMENT You shai nat be parmited as or transter any pan of we eppointment herein to any other person ji pri watien consent. () —_Youegree that the appointment horsin shall be interpreted and construed in ocordanea with tne iawe oF hiaiayain nea you Witner agree fo submit Te ‘exclusive juriediction of the courte of Malavera, He tie above terms and consiivone sot out in this letter of offer are acceptable to you, kinaly Gontimmvaur acceptance by signing ard returring the Guplieste coby ofthis letter of offer tou with Sq aaya trom the date heveot Pating which the offer shal Be ccemed to have inpeee ‘Yours taittuly, Forand.on behat of 3000000000000000% Rogatered estate Agent — © 200X LETTER OF APPOINTMENT APPOINTMENT wwe, have read and understood the terms and conditions ‘set cut hereinabove and hereby accept and appoint ‘88 myfour Tenancy Manager in respect of the Proparly upon the Terms and condone SupuaTed hersinabave. NRIC/ Pessport no: 225/30/2019 SCOPE OF SERVICES - APPENDIX A + Be the nominated key holder and ris from the developer atthe time of delivery of vacant possession of the Property, Property ensure that all main services are functioning property. Carry out inital inspection to ensure thatthe Property is ina good tenantable condition. For any work authorized by you which cost is up to RM2, 000.00, we shall proceed accordingly after negotiation fora reasonable cost. In the event that the cost is more than RW2, 000.00, 3 quotations shal be secured for your consideration and decision Inthe event of any EMERGENCY situation, we are allowed to proceed with all necessary Repairimtigating works without the need for prior approval from you. We will endeavor to inform you as soon as possible following an emergency event. SCOPE OF SERVICES Record ules meter readings both Kadine commencement and Upon the expiry of the tenanoy. Issue rental invoice to tenant on monthly basis and collect rental on timely basis. To deposit rental amount to client accounts on timely basis. Follow up on the rental arrear outstanding and advice on any proposed action to be take- ins the tenant. To liaise with client and tenant and attend on all day-to-day management issues arising from the Property. Advice onal required charges including serviceimaragement charges, siking fund, qut fentand other outgoings payable and where required, pay such charges on the client's behalf from the client's accounts (float) or rental received from the tenant. KFPM will not be responsible forthe delay by the client for setting their dues and outstanding payment, 235/30/2019 SCOPE OF SERVICES ‘+ Hold all deposits payable by the ten: pply the same agai to the Property at the end of the tenanay. + Report and account to the client on all rental and fees payable on a timely basis in agreed format. ‘+ Carry out inspections, on the premises and providing repor, if matters are not in order. ‘+ Provide advice and recommendations on remedial work to be carried out on the Property for imorovement purpose and e separate coordination fees of 5% from the total repair cost (of RMS,000.00 and above will be charges for any repair work which need to monitored by us. The rest of this page Is left blank intentionally. WHO ARE YOUR POTENTIAL CLIENTS? Your services needed if someone faces the following; ca Difficulty in rental collection from Tenants c& Find difficulty in increasing rentals upon expiry of Tenancy ca Do not know how to handle complaints from Tenants ca Cumbersome to remember to pay Out-goings etc. ca Do not have a panel of contractors to help in repairs 3 Just enjoy rewards of investment and let professionals do the job a 24,5/30/2019 THANK YOU OO OG