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Commercial Rental Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commercial Rental Agreement

"I need a Commercial Rental Agreement for a retail space in a shopping mall in Kuala Lumpur, starting from March 1, 2025, with a 3-year term and option to renew, including specific provisions for operating hours and promotional events in common areas."

Document background
The Commercial Rental Agreement is a vital legal instrument used in Malaysia for establishing and managing commercial property leases. It is essential for businesses seeking to rent commercial spaces and property owners looking to lease their premises for business purposes. This document is structured to comply with Malaysian property and contract law, including the National Land Code 1965, Contracts Act 1950, and relevant local government regulations. It contains comprehensive provisions covering rental terms, maintenance obligations, permitted use, insurance requirements, and other essential aspects of commercial tenancy. The agreement is particularly important in protecting both parties' interests by clearly defining their rights and obligations, ensuring compliance with local business regulations, and providing mechanisms for dispute resolution. It should be customized based on the specific nature of the commercial property, intended use, and particular requirements of both landlord and tenant.
Suggested Sections

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

2. Background: Brief context of the agreement and property ownership

3. Definitions: Defines key terms used throughout the agreement

4. Demise: Specifics of the property being leased and any included fixtures/fittings

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

6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment

7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit

8. Utility Charges: Responsibility for utilities and service charges

9. Use of Premises: Permitted use of the property and any restrictions

10. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance

11. Insurance: Required insurance coverage for both parties

12. Landlord's Covenants: Obligations and promises of the landlord

13. Tenant's Covenants: Obligations and promises of the tenant

14. Termination: Conditions and procedures for ending the lease

15. Governing Law: Specification of Malaysian law as governing law

16. Notices: Process for serving notices between parties

Optional Sections

1. Option to Renew: Terms for lease renewal - include when the parties want to pre-agree renewal terms

2. Rent Review: Mechanism for periodic rent adjustments - include for longer-term leases

3. Assignment and Subletting: Rights to transfer the lease or sublet - include when these rights are to be granted

4. Alterations and Improvements: Rights and procedures for making changes to the premises - include for premises likely to need modification

5. Break Clause: Early termination rights - include when parties want flexibility to end the lease early

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

7. Green Lease Provisions: Environmental and sustainability requirements - include for green buildings or when parties have sustainability goals

8. Service Charge Provisions: Detailed service charge calculations - include for properties in managed buildings/complexes

Suggested Schedules

1. Schedule 1 - Property Description: Detailed description of the premises including floor plans and measurements

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

3. Schedule 3 - Building Rules and Regulations: Specific rules for the building or complex

4. Schedule 4 - Fit-out Guidelines: Specifications for any permitted tenant improvements

5. Schedule 5 - Service Charges: Breakdown of service charges and calculation method

6. Appendix A - Plans and Drawings: Official plans showing the leased area

7. Appendix B - Handover Form: Condition report for property handover

8. Appendix C - Authorized Renovations: Pre-approved alterations or improvements if any

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































Clauses








































Relevant Industries

Retail

Office Space

Industrial

Warehousing

Healthcare

Food & Beverage

Technology

Manufacturing

Professional Services

Education

Banking & Finance

Logistics

Entertainment & Leisure

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Compliance

Risk Management

Property Management

Administration

Corporate Services

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Manager

Commercial Director

Operations Manager

Chief Financial Officer

Business Development Manager

Contract Administrator

Compliance Officer

Risk Manager

Asset Manager

Real Estate Agent

Company Secretary

Finance Director

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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