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Property Friday: Holding Over a Tenancy — Rights and Risks for Both Sides

The Double Rent Rule — Section 28(4)(a)

Under s 28(4)(a) of the Civil Law Act 1956, a tenant who holds over after the tenancy ends — and refuses to vacate when asked — becomes liable to pay double the rent.

 

Normal Rent

×1 = What you owe during a valid tenancy

Holding Over — Refused to Leave

×2 = What you owe after tenancy ends and landlord demands possession

 

✅When Double Rent Applies

  • Tenancy ended
  • Landlord demanded vacant possession
  • Tenant refused or failed to vacate
  • Landlord did NOT consent to holdover by conduct or otherwise.

When Double Rent Does NOT Apply

  • Landlord accepted rent after expiry without demanding possession
  • Parties were negotiating renewal
  • Landlord tacitly approved continued occupation. (Rohasassets Sdn Bhd v Weatherford (M) Sdn Bhd [2020] 1 MLJ 557)

 

Rohasassets Sdn Bhd v Weatherford (M) Sdn Bhd [2020] 1 MLJ 557

The Federal Court settled the law on double rent in Malaysia in 2020. Both landlords and tenants need to understand this ruling.

 

1. No Need to Prove “Contumacious” Conduct

The landlord does not need to show the tenant was stubbornly defiant. Simple refusal to vacate after being told to do so is sufficient to trigger the double rent liability.

2. But Consent Defeats the Claim

If the landlord accepted rent and agreed to negotiate renewal without issuing a notice to quit, they impliedly consented to the tenant staying — and waived the right to double rent by conduct.

3. Double Rent Runs from Notice Expiry Only

Double rent is chargeable from the date the notice to quit expires — not from the date the tenancy expired. The tenant is a “tenant at will” during negotiations, not a trespasser.

 

“Double rent is not merely rent — it is a penal sum for the inconvenience and loss the tenant causes the landlord in refusing to give up possession.”

Rohasassets Sdn Bhd v Weatherford (M) Sdn Bhd [2020] 1 MLJ 557

 

Not Paying Rent = The Distress Remedy

The Distress Act 1951 gives landlords a fast-track court remedy to recover rent arrears — by seizing and selling the tenant’s movable property on the premises. No full civil suit needed.

  • What It Covers

✅Rent Arrears Only

Up to 12 completed months of rent arrears immediately preceding the application date. Both during and after tenancy (if tenant still in occupation or goods still on premises).

  • What It Does NOT Cover

No Double Rent

Double rent, mesne profits, damages for holding over, or penalties cannot be claimed by writ of distress. These must be pursued by separate civil proceedings. (Mari Boutique Sdn Bhd v Jaya Jusco Stores Bhd [2004] 1 MLJ 74, HC)

 

Key Requirement — Landlord-Tenant Relationship

The relationship of landlord and tenant must exist both when the rent becomes due and when the distress is levied. If the relationship is licensor-licensee, no distress is available. (Perbadanan Pembangunan Bandar v Syabas Holdings [1990] 2 MLJ 116, HC)

 

How a Warrant of Distress Works 📜

From application to sale, the process is court-supervised at every step — and the tenant has rights throughout.

  • Landlord Applies Ex Parte to Court

Landlord or authorised agent files the application. A Warrant of Distress is issued directing the court bailiff to seize movable property on the premises.

  • Bailiff Seizes Property & Prepares Inventory

The bailiff enters the premises, seizes sufficient movable property, and prepares an inventory and approximate valuation. Exempt property (clothing, tools in use, third-party goods) cannot be seized.

  • Notice of Seizure Served on Tenant

Tenant receives notice of seizure with inventory. Tenant has 5 days to pay arrears and costs — or to obtain a court order restraining the sale.

  • Sale (If Unpaid) — Proceeds Applied to Arrears

Property sold at minimum 6 days after seizure. Net proceeds applied first to bailiff’s fees and expenses, then to rent and costs. Balance returned to tenant.

 

Tenants: Know your rights against Distress 🛡️

A writ of distress is not an unlimited power. Tenants have specific rights and defences available throughout the process.

 

Property Exempt from Seizure:

❌Cannot be Taken

  • Items in active use at time of seizure
  • Tools and implements (if other goods available)
  • Personal and family clothing and bedding
  • Goods held for trade purposes
  • Third-party and hire-purchase goods
  • Goods of guests at an inn
  • Government/local authority property.

Grounds to Challenge the Writ:

⚖️Tenant May Apply to Court

  • Seized property belongs to a third party
  • Amount claimed exceeds 12 months’ arrears
  • Landlord failed to follow correct procedure
  • Landlord seeks to lock up premises (not permitted under the Act)
  • Double rent or damages are included (not recoverable by distress)

‼️Important: A landlord in a writ of distress proceedings cannot apply for a court order to lock up the tenant’s premises. This right is not provided under Sections 5 and 7 of the Distress Act 1951. (Aida Ratini Mansor v Sungei Wang Plaza Sdn Bhd [2024] 7 MLJ 663)

 

“The landlord’s claim for double rent is not merely for rent — it is a penal sum for the inconvenience and loss caused by the tenant’s refusal to vacate, and this right can only be taken away by statute.”

– 📘Excerpt from Property Law (Sweet & Maxwell, 2025) by George Miranda

 

For further information, please contact us at Miranda & Samuel:

  • Dato’ George Miranda (george@mirandasamuel.com)
  • Joy Sam Jia Qian (joy@mirandasamuel.com)
  • Alisyah Maisarah (alisyah@mirandasamuel.com)

 

🌐 Follow us for timely updates on legal news and insights:

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– By George Miranda, Joy Sam Jia Qian, Alisyah Maisarah –

This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.

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