PETALING JAYA: A proposal by the government for it to hold a two-month deposit under the Residential Tenancy Act (RTA) has met with objection from National House Buyers Association.
However, there were mixed reactions from members of the public.
The association’s honorary secretary-general Datuk Chang Kim Loong (pix) said the proposal makes no sense although he welcomes the RTA as it will clearly spell out the terms of agreement for a rental property. “It will also state the rights of the landlord and tenant, there will no longer be need for pages and pages of agreement. Everyone will need to use the Act’s standard template.”
However, he disagreed with the proposal for the deposit to be held by the Housing and Local Government Ministry. One reason a landlord takes the deposit is because he wants to use the money for some other purposes, he said.
He asked how long it will take for the landlord to get back the deposit if the government takes the deposit, given the red tape involved.
Chang said the public is asking how efficient can the ministry be when it cannot even sort out housing projects that have been abandoned, some up to 15 years.
He said the government now wants to control the residential rental market and it could be shopping malls next. “Where will this stop?” he asked.
On the positive side of the proposed Act, Chang pointed to the dealing with disputes involving landlords and tenants. He said this will resolve the disputes faster as there will be no need to go to court.
The Act should not only apply to the landlord but also those who sublet rooms in a property, he said.
“The government is interfering in the market economy where there is no such need for government intervention, it will only drive away investors. It should concentrate on macro issues during this Covid-19 pandemic recovery period such as reviving the tourism and hospitality industry,” he said.
Chang said public opinion on government keeping the rental deposit can be very damaging to its image.
The public during the feedback period have asked how is the government going to determine to give full or partial refund and how long will it take to process the refund.
Someone has asked what does a private property agreement have anything to do with the government; the landlord paid for the land, and therefore he should have the right to keep the security deposit.
Some supported the idea because the rental deposit was being increased from 1+1 to 2+1 and now in some areas in the Klang Valley it is 3+1.
Another also supported the idea as his landlord refused to return the deposit despite the house being returned in good condition.
