Important Things to Include in a Tenancy Agreement

by | i-Stories, Property Trend, Rental Trend


First and foremost, a tenancy agreement is a legally binding contract between the tenant and the landlord. The deal covers the responsibility of both sides during the tenancy period. The landlord may choose to hire a lawyer to draft the contract, and the tenant may also review the agreement with their own lawyer. This is to ensure proper terms have been set before signing it.

However, hiring a lawyer can be expensive for both parties. Hence, many people chose to draft their own agreements and make any necessary changes before the official signing of the contract. 


Just like any legal document, a tenancy agreement is carefully worded to ensure that there is minimal room for misinterpretation. However, this makes it full of legal jargons that may be difficult to understand. Hence, we have outlined some of the standard terms and clauses found in a tenancy agreement.

1. Details of both parties in the tenancy agreement

One of the essential details in a rental contract is the details of the landlord and the tenant. This includes the names and contact details of both the landlord and tenant bound by the agreement. This ensures that all individuals living on the property are liable and legally responsible for the terms listed in the tenancy agreement.

2. Details of the property to be rented

A tenancy agreement should state clearly the full address and type of house. Thus, both parties can be clear about the rental property that the tenancy agreement covers.  

3. Purpose of renting

This term clearly states the purpose of renting the property and in this case, for residential purposes. This ensures that the tenant cannot use your property for other immoral or illegal purposes such as a gambling den.

4. The tenancy duration

The tenancy period states the duration that the tenancy agreement covers for both parties. Thus, the landlord and tenant are both aware of the length of the rental. Not only that, but the tenant can renew the contract upon its conclusion.

5. The deposit amounts

The tenancy agreement should specify the amount of security and utility deposit retained by the landlord and how it may be used. The contract should be clear regarding what can be deducted from the security deposit.

Earnest deposit: This deposit is collected as a booking deposit or a deposit to “reserve” the property and preventing the landlord from showing or renting the property to someone else. The deposit amount is equivalent to a month’s rent. Upon the start of the tenancy, it is usually considered the first month’s rent. However, it can be kept as a deposit or even returned to the tenant.           

Security deposit: The security deposit is collected to protect the landlord in the case that the tenant violates the clauses in the tenancy agreement. The amount can be used to pay for damages to the property, late rental fees, cleaning, key replacements, or forfeited if the tenant leaves before the end of the tenancy. 

Utility deposit: The utility deposit is paid to cover any outstanding utility bills at the end of the rental period such as gas, electricity and water. The deposit amount is usually equivalent to half a month’s rent. 

6. How and when the monthly rental is paid and monthly rental amount

The payment details should be provided by the landlord regarding the payment method, account details and monthly rental amount. The tenancy agreement should also include the monthly rental due date (a reasonable time frame), and any penalties should the payment be done past the due date.

7. What is provided by the landlord during the tenancy

Besides, the tenancy agreement should contain details of the condition of the property and its contents. This includes any furniture, utilities and fittings provided by the landlord. This term ensures that the tenant will not be charged for any existing damage or missing items.

8. Landlord obligations throughout tenancy duration

The obligations of the landlord should be mentioned in the tenancy agreement. The landlord should be responsible for the property tax, insurance, and ensuring that the appliances in the property are in working order.

9. Tenant obligations throughout tenancy duration

The tenancy agreement should cover the responsibilities and obligations of the tenant such as paying rent and bills on time, taking care of the furniture and existing items on the property, not to use the property for business or illegal purposes and not renovating or modifying anything without the landlord’s approval. Not only that, terms such as allowing entry for inspection and repairs, no subletting and returning the property in good condition are also usually added in the contract.

10. Renewal or termination clauses

The tenancy agreement should also include terms for ending the tenancy early by any parties. The clause should specify how much notice will need to be given and if there are any extra costs. In the case of the renewal, tenants should notify the landlord at least a month before the tenancy agreement ends.

The details of the contract should be discussed or worked out to avoid any misunderstanding or ambiguity.


Rumah-i property management service provides landlords and tenants with a digital tenancy agreement template. Thus, with our help, landlords do not need to hire a lawyer to draft a contract or even pass the contract over to the tenant to sign. Not to worry, a digitally signed tenancy agreement is legal with its duty stamped copy. We aim to go green and reduce the hassle of drafting a contract and the signing process.

Moreover, Rumah-i will screen potential tenants using RAM Credit Information (RAMCI) to prevent defaulters and bad tenants. Not only that, we will send reminders to tenants before the end of their tenancy period. Thus, tenants will remember to renew or terminate their contract before the due date. We also protect the interest of the tenant by releasing the booking fee to the landlord only once the tenancy agreement has been signed.

Our rental management packages help property owners rent their property hassle-free and providing the best services to the tenants. Get in touch with us to know more. 


- Entitle ONE time rental collection service for free

- Rental collection service for free is limited to FIRST 1,000 properties which engage the service and is for pre-launch registered owners only.

- Tenancy agreement must be prepared by Rumah-i.