Kuala Lumpur studio: rent increase or retain a reliable tenant?

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xavi.ives

Homeowner
I’m reviewing the lease on a Kuala Lumpur studio. Comparable asking rent appears close to MYR 15,800, while the tenant currently pays about MYR 14,000. They pay reliably and look after the home, although there has been a long list of small maintenance jobs.

Would you propose a modest increase, or keep the rent steady in return for a longer lease? I’m trying to weigh the gap against vacancy, turnover and refurbishment costs while following local notice requirements.
 
One complication is that MYR 15,800 is an asking figure, not necessarily evidence of what similar studios actually secure. The maintenance has also been numerous small items rather than obvious tenant damage. I’d rather agree something defensible than push for the full difference and lose a good tenant.
 
Start with the cost of replacing them, not the headline asking rent. Estimate vacancy time, preparation work, marketing and the risk of a less dependable replacement. Then compare that total with the additional rent you would collect over the proposed renewal period.

What does the current tenancy agreement say about renewal, rent review and notice? Those details may determine which options are realistically available.
 
I agree with the calculation, but I wouldn’t automatically treat retention as the cheaper choice. If the property has genuinely fallen behind comparable achieved rents, leaving it unchanged through another long lease can widen the problem.

A middle course could be a smaller adjustment paired with a clearly stated lease term and maintenance plan. Before proposing it, separate landlord maintenance from tenant-caused issues, confirm the contractual notice process, and get Malaysia-specific guidance if the wording is unclear.
 
Also keep the deposit out of the rent negotiation. Record its existing purpose and handling separately rather than informally using it to bridge an increase or cover routine work. A written renewal showing the new rent, term, responsibilities and effective date should reduce later misunderstandings.
 
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