
The National House Rental Association (NHRA) has urged the government to expedite the enactment and implementation of a residential tenancy act (RTA) to protect homeowners from being penalised for illegal activities carried out by tenants.
NHRA president Prakash P. Kalivanan highlighted growing public concern over residential properties being used for illicit operations, including Bitcoin mining, prostitution, harbouring undocumented immigrants, storing stolen goods and loan-sharking activities.
He said under current legal provisions, property owners could face investigation or legal action if authorities determined they had knowledge of the unlawful activities or failed to take reasonable preventative steps.
"A majority of homeowners rent out their properties in good faith and are often unaware of the activities carried out by their tenants.
"Many rely on rental income to meet their financial commitments. They should not be unfairly victimised due to the actions of tenants acting without their knowledge."
Prakash said the Housing and Local Government Ministry should deliver a comprehensive RTA without further delay.
"The legislation is crucial in establishing a balanced, transparent, and legally secure rental ecosystem."
He said this would also regulate the residential market by outlining the explicit rights, responsibilities and obligations of all parties involved, minimising disputes and improving enforcement mechanisms.
Prakash said landlords should exercise reasonable diligence and take proactive measures to shield themselves from potential legal complications.
He added that property owners must ensure they prepared a proper, legally stamped, written tenancy agreement that explicitly prohibited tenants from conducting illegal activities on the premises.
"Landlords are strongly encouraged to carry out basic tenant verification and background checks, including verifying identification documents and ensuring all personal details provided are authentic, before handing over the keys.
"Furthermore, they should conduct periodic inspections of the rented property after giving reasonable notice to ensure the premises are being used strictly for lawful residential purposes."
Prakash said maintaining documentation, such as copies of tenant identification, rental payment records and written correspondence, was vital to demonstrate that the landlord acted responsibly, should any issue arise.
He said landlords must also report any suspicious or illegal activity on their property to the authorities immediately.
"Prompt action will prevent further misuse of the premises and protect the homeowner from possible legal implications," he added. - NST
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