Unfair to blame us for tenants’ illicit activities, say estate agents

 

Property agents said they are required by law to carry out checks on potential tenants but there is only so much they could do.

PETALING JAYA: It is unfair to hold property agents responsible for the illicit activities of tenants occupying rented premises, the Malaysian Institute of Estate Agents (MIEA) said.

Association president Tan Kian Aun told FMT property agents are governed by the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, and are obliged to comply with a code of ethics.

One of the requirements is that they properly screen prospective tenants using a “know your customer” form.

“The problem is what the tenants do after the profile screening. When they do something illegal later, it’s not fair to blame us since we have done our part in conducting a proper check,” he said.

Tan said there have been cases of unlicensed agents renting out premises without running the proper checks, only to find out later that the premises were being used for illegal purposes.

He said licensed agents are also monitored by the Malaysian Anti-Corruption Commission and Bank Negara Malaysia, and, therefore, follow the code of ethics strictly.

However, he said, even after a filtering process, there is no guarantee the tenants would abide by the law when in occupation of the premises.

Last week, commercial crime investigation department director Ramli Yoosuf warned property agents and owners that they would be prosecuted if illicit activities take place on their premises.

Ramli said they could face action under the Penal Code, such as Section 420 for cheating, Section 34 for joint liability, and Section 109 for abetment.

Senior real estate negotiator James Wong said registered agents owe a duty of care to their clients to find bona fide tenants.

“Property agents should not be blamed, held as accomplices or prosecuted if the premises eventually turn into a scam call centre,” he told FMT.

While landlords are encouraged to regularly inspect the premises and report suspicious activities to the authorities, Wong said telecommunications companies should also report the suspicious use of multiple lines at any premises. - FMT