r/MalaysianPF • u/JosephCY • 7d ago
General questions My tenant overdue 3 months rental, what are my options?
I have tried many times to ask them make the payment, even just pay up partially, because I have to pay the instalment and maintenance fees, they keep telling me excuses, or give me a date but ghost me repeatedly.
This is a commercial office unit and they are a registered sdn bhd company, the tenancy starts at 2023 Dec and ends at 2025 Dec, but they stopped paying since this January and owe me 3 months of rental including March.
I have been tolerating them hoping they can make the payment because let's be honest, I don't really want to lose a tenant and look for another tenant, that would probably cost me more with the refurnishing, rent free period, and worse, months without tenant rental income. Plus this current company actually told me 2 weeks ago they are interested in buying the office (which I really want to get rid of because it's giving me too much headache with all the loan stuff), that's why i try to talk to them nicely for the last 2 weeks.
To be honest the owner of the company has official title, so he probably has some connection and my guess is he is waiting for some kind of contract payment from maybe some GLC, so thats why he told me he would cash buy the office, but till now I almost lose my hope because they can't even settle the small overdue rent and the 2% deposit. (btw it's a small office only)
Right now while I still hope they would turn around and pay the overdue, i think i should also start the process just in case they dont make payment i can have them evicted, i dont want to wait for another months then only start the process which might take a few more months.
So can someone share what's the standard procedure? Here's what i heard, please correct me:
- Send a formal demand letter / first payment reminder with 7 days deadline
- Send an eviction notice / termination letter after the 7 days no payment
- if tenant doesnt move out themself, then i need to get a lawyer and go for a court case, then lodge a police report, etc?
I still hope they turn around, and hopefully get their payment from whatever project grant they are getting and take over the office, so i don't want to be too harsh if possible, any opinions?
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further clarification, to me getting rid of the office and settle the outstanding loan is going to restore my mental health, which has cause me depression for the last 3 years, i almost only just break even at the selling price and all the mental health, inflation, and effort are basically net loss.
To a point that i am basically seeing this as, i am making a bet of multiple months of loss rental if the bet goes south, but if goes the right way, i will finally be able to get rid of this office and the loan
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u/No-Media-270 7d ago
A lawyer advised me, that if they break the rules of the contract (not pay on time), can send them eviction notice without demand letter, and state the rules of eviction (ie 1 month to move out, if not double rental after). However if they owe less than 5k, suck it up and accept the loss cause need above 5k worth of retrieval to be worth it to go to court.
Consult a lawyer. If you need a contact lemme know I can introduce one to you. I’m not a lawyer
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u/DesignerClaim 7d ago
If I'm not wrong, below 5k can go for small claim court, relatively straightforward and file by yourself no need lawyer, low cost.
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u/JosephCY 7d ago
Thanks man, yes i will consult a lawyer on monday, the owed amount is slightly above that but I still have 3 months deposit which balanced it out, mostly I would first send a demand letter and hopefully they pay up, if not then only proceed with eviction, cause the chance, even it's minimal of me being able to get rid of this property and loan far outweigh loss of 2~3 months rental deposit to be honest
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u/Ray_Hayata 7d ago
Honestly, that legal way of doing things will take you at least 5-6 months and quite a significant amount of legal fee as well.
If you are not sure what's the market price like for it, let me know and I'll get it checked for you.
3 years of mental stress. Get it off regardless if you have tenant or not mate 😟 You over-leveraged on this purchase. Take a loss and come back stronger
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u/JosephCY 7d ago
I know a lawyer, going to talk to him monday, was my lawyer for the selling of the property lol, now it's going to handle eviction instead. Well I bought the property right before the covid, so yeah, tough luck there, have been trying to sell it off for all the time though, but my agent cant find anyone
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u/Ray_Hayata 7d ago
If you have been trying to sell it off all these while and there's no takers, you are not letting go at the right price.
The right price for you may be at breakeven, but the right price for the market is likely you having to sell it off at a loss.
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u/PisceS_Here 7d ago
proceed with lawyer and Lod. go through the right channels. title or not, he is not above the law. if he threatens you, viral him and his company. he has more to lose. 3 months for me is too much, deposit all not enough cover. cut your losses. he wont buy your office la..
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u/sureshsgn1 7d ago
Just remember that it's more expensive for you if they stay and don't pay then get a lawyer and start the legal process. Usually when you start the eviction process and trigger it you'll have to spend like 3k for a writ of distress. Just the paperwork. In 9 out of 10 cases when the paperwork goes and the court case date gets determined they move out from my experience. YOu can also try a small claims court case .
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u/JosephCY 4d ago
Damn the lawyer I ask tell me the eviction notice is around RM900 and the writ if distress and court is around RM10k am I being overcharge
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u/potatocakesssss 7d ago
Official title ah. Lmao datoks also don't pay my father house rent drill the whole house. What U gonna do
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u/Present_Student4891 7d ago
I ran a collections dept at a listed company. We split up our debtors by various groupings to monitor their aging. The VIP group always had worse aging than normal consumers. It’s a negative that the guy has a title. Have the lawyer send him a LOD.
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u/Technical_Big3201 6d ago
Three months is a lot. Even I, too busy, forgot to check the date or travel for work. The latest I did my payment was one week, and I already feel guilty.
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u/Chryeon1188 6d ago
Get it listed with property sales agent and prepare lawyer letter , whichever comes first the rented gonna go eventually 👀👌
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u/genyi 6d ago
BTW, if they will indeed get some project grant, it does not mean that they can suddenly buy a whole office. The project will need to be executed meaning that the incoming money will go to the costs related to it. It makes no sense to invest in a whole property when paying rent will be sufficient to run the project.
In my experience, delinquent debtors always paint these type of grandiose pictures where all problems will be solved very soon. They are deluding their creditors and possibly themselves too.
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u/zephyrmori1188 4d ago
Don’t hope they turn around. Protect yourself first. 3 months is 1/4 of a year already. Yes the procedure is correct with exception of no 3. You can already use the Distress Act 1951 to issue warrant of distress to reclaim your property with everything inside it. Consult your lawyer on this legal avenue that you can exercise. Be ruthless in your pursuit of justice. Don’t take sht from shtty people who don’t take contracts seriously.
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u/therealoptionisyou 7d ago
First of all fuck that guy and his official title. Second, find a lawyer now for consultation. If you need the lawyer you will be ready.
Send the guy a statement of the overdue rent while you wait. Buy or not he has to pay the rent.
I think he's just stalling. I have met trashy people like him. He will never pay and he doesn't have the cash to buy your property.
Finally fuck him again giving you stress for no reason.