Signing a commercial tenancy is a serious commitment that can tie up your business for years. Before you put pen to paper, work through the checklist below so there are no surprises after move-in.
1. The Rent and How It Can Change
Confirm the monthly rent in writing and check whether and how it can be revised during the term. For multi-year leases, look for a rent review or escalation clause and make sure any increase is capped at a level you can plan for.
2. Deposits and Advance Payments
Commercial leases in Malaysia typically require a security deposit of two to three months’ rent, a utility deposit, and one month’s advance rent. Get clarity on the exact total due on signing and the conditions for getting your deposit back at the end.
3. The Tenancy Term and Renewal
- How long is the fixed term, and is there an option to renew?
- What notice period applies if either side wants to end the lease?
- Is there a lock-in period and what is the penalty for early termination?
4. What’s Included — and What’s Not
Clarify whether the rent covers service charge, sinking fund, quit rent and assessment, and car park bays. Ask who is responsible for repairs to the air-conditioning, plumbing and the building structure. These “hidden” costs can add significantly to your real monthly outlay.
5. Permitted Use and Renovation
Make sure the unit is approved for your type of business and that the local authority permits your intended use. If you plan to fit out or renovate, confirm in writing what is allowed and whether you must reinstate the unit to its original condition when you leave.
6. Stamp Duty and Legal Formalities
A tenancy agreement should be stamped to be legally enforceable. Stamp duty is calculated on the annual rent and the length of the term, and the tenant usually bears this cost. Factor it into your move-in budget and keep the stamped copy on file.
Note for editor: Add the current stamp duty calculation method or a simple example here, and confirm figures against the latest LHDN / valuation guidelines before publishing. Avoid quoting an exact rate if you are not certain it is current.
7. Condition of the Property
Inspect the unit before signing and document its condition with photos. Note any existing damage in the agreement so you are not charged for it later. Check power capacity, internet readiness, access hours and parking availability against your actual needs.
Lease With Confidence
A good agent helps you spot these issues before they become problems. Browse our office and shop lot listings, or contact us for guidance on any unit you are considering. Landlords can also list a property with us.