Facility Rental Agreement for Malaysia

Facility Rental Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes the terms and conditions for the temporary use of a facility between the facility owner/landlord and the tenant. The agreement covers essential aspects including rental terms, payment conditions, permitted usage, maintenance responsibilities, and liability allocation, while ensuring compliance with Malaysian property laws, local regulations, and where applicable, Shariah law principles. It includes specific provisions for security deposits, utilities, insurance requirements, and dispute resolution mechanisms tailored to the Malaysian legal context.

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What is a Facility Rental Agreement?

The Facility Rental Agreement serves as a crucial legal instrument in Malaysian property transactions, designed to protect the interests of both facility owners and tenants. This document is essential when any party wishes to rent out a facility, whether for commercial, industrial, or special-purpose use. The agreement, governed by Malaysian law including the Contracts Act 1950 and relevant property regulations, outlines specific terms for facility usage, maintenance obligations, rental payments, and liability allocation. It should be customized based on the facility type, intended use, and specific requirements of the parties involved, while ensuring compliance with local authority regulations and, where applicable, Shariah law principles. The Facility Rental Agreement typically includes detailed schedules covering facility specifications, inventory, and operational guidelines, making it a comprehensive document for managing facility rental relationships.

What sections should be included in a Facility Rental Agreement?

1. Parties: Identification and details of the facility owner/landlord and tenant, including registration/ID numbers and addresses

2. Background: Brief context of the agreement and facility rental purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility Details: Specific description and location of the facility being rented

5. Term and Renewal: Rental period, commencement date, and renewal terms

6. Rental Fee and Payment Terms: Rental amount, payment schedule, late payment penalties, and security deposit details

7. Permitted Use: Specified purposes for which the facility may be used

8. Maintenance and Repairs: Responsibilities of each party regarding facility maintenance and repairs

9. Utilities and Services: Responsibility for utility payments and service charges

10. Insurance and Liability: Insurance requirements and allocation of liability between parties

11. Access and Security: Rules regarding access to the facility and security measures

12. Termination: Grounds and procedures for agreement termination

13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

14. Notice Provisions: Methods and addresses for serving notices between parties

What sections are optional to include in a Facility Rental Agreement?

1. Operating Hours: Specific times during which the facility may be accessed and used - relevant for commercial facilities

2. Equipment and Fixtures: Details of any equipment or fixtures included in the rental - relevant if facility comes with equipment

3. Subletting Provisions: Terms regarding subletting rights - include if subletting might be permitted

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

5. Environmental Compliance: Environmental obligations - relevant for industrial or commercial facilities

6. Alterations and Improvements: Terms for making changes to the facility - relevant for long-term rentals

7. Staff and Security Requirements: Specific staffing or security requirements - relevant for certain commercial facilities

8. Halal Compliance: Requirements for maintaining halal status - relevant for food-related facilities

What schedules should be included in a Facility Rental Agreement?

1. Schedule 1 - Facility Plan and Layout: Detailed plans and drawings of the facility

2. Schedule 2 - Inventory List: List of all equipment, furniture, and fixtures included in the rental

3. Schedule 3 - Service Level Agreement: Detailed maintenance and service specifications

4. Schedule 4 - House Rules: Specific rules and regulations for facility use

5. Schedule 5 - Utility Rates: Current utility rates and calculation methods

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and coverage requirements

7. Appendix A - Required Permits and Licenses: Copies of all relevant permits and licenses

8. Appendix B - Emergency Procedures: Emergency protocols and contact information

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use
Relevant Industries

Real Estate

Manufacturing

Retail

Hospitality

Education

Healthcare

Sports and Recreation

Entertainment

Logistics

Food and Beverage

Technology

Professional Services

Events Management

Industrial

Research and Development

Relevant Teams

Legal

Operations

Facilities Management

Finance

Procurement

Risk and Compliance

Administrative

Real Estate

Business Development

Property Management

Relevant Roles

Facility Manager

Property Manager

Legal Counsel

Operations Director

Chief Financial Officer

Real Estate Manager

Procurement Manager

Contract Administrator

Risk Manager

Compliance Officer

Business Development Manager

Events Coordinator

Operations Manager

Asset Manager

Administrative Manager

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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