Many years ago, a friend of Ms. Alice Lee was declared bankrupt. Curious about what caused this, she asked him, and he told her it was related to unpaid rent. Here’s the story: Her friend rented a corner spot in a Kuala Lumpur mall to sell clothes. Trusting the mall owner, he signed a three-year lease without thoroughly reading the terms. He paid one month’s rent, a three-month deposit, and a utility deposit equivalent to one month’s rent. He then started his business immediately. However, after a few months, he found the mall had very little foot traffic, making it unlikely that his business would ever pick up. As a businessperson, he had to consider cutting his losses and stopping his operations to avoid further financial losses.

He informed the owner of his decision to terminate the lease, but the owner told him that he couldn’t break the lease early. In other words, he was bound to pay the rent for the full three years, regardless of whether he continued with the lease. Her friend then carefully read the lease and realized that the terms indeed required him to pay for the full lease period. With no way to pay the remaining rent, he was ultimately sued by the mall owner and declared bankrupt.

Can Cutting Off Utilities Force a Tenant to Leave?

This example highlights the importance of fully understanding lease terms before signing to mitigate personal risk. A typical lease includes the identities and addresses of the landlord and tenant, the lease term’s start and end dates, the rent increase for renewal, the monthly rent amount, the deposit amount, the utility deposit amount, and the deadline for monthly rent payments to the landlord, as well as the lease purpose.

Generally, leases don’t exceed three years and therefore don’t need to be registered with the Land Office. Leases longer than three years require registration (referred to as “leases”). Many landlords prefer a 3+3+3-year arrangement to avoid encumbrances on their titles by a lease. When the lease expires, the tenant is usually required to move out. But what if a tenant refuses to leave? Some landlords might think that changing the locks or cutting off utilities will force the tenant out. However, savvy tenants might hire a lawyer to sue the landlord for entering their unit without permission and taking their valuables, demanding compensation for losses, leaving the landlord defenseless.

If a tenant refuses to leave after the lease expires, the landlord can legally apply for an eviction order in court. Before doing so, the landlord must issue a demand letter through a lawyer for the unpaid rent, giving the tenant a reasonable time to move out. If the tenant doesn’t vacate by the notice’s effective date, the landlord can charge double rent until the tenant vacates.

In conclusion, property types vary, and not every lease is the same. Whether you’re a landlord or a tenant, you should understand the lease terms before signing. If issues arise after signing, it’s difficult to get the other party to agree to changes.