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Landlords' Perception Introduction of the Residential Tenancy Act (RTA)

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Landlords' Perception Introduction of the Residential Tenancy Act (RTA) e-IPH AcE-Bs2019LangkawiIsland e-International https://www.amerabra.org; https://fspu.uitm.edu.my/cebs; https://www.emasemasresources.com E - B Publishing House Environment-Behaviour Ltd., United 8th Asian Conference on Environment-Behaviour Studies, Proceedings Journal Kingdom Holiday Villa Resorts & Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 Landlords’ Perception on the Introduction of the Residential Tenancy Act (RTA) Nurul Ardila Azmi, Mariana Mohamed Osman, Syafiee Shuid Department of Urban and Regional Planning, Kuliyyah of Architecture & Environmental Design, International Islamic University Malaysia, Jalan Gombak, Gombak, 53100 Kuala Lumpur, Malaysia. AcE- Bs2019 Langkawi INTRODUCTION Island 8th Asian Conference on Environment-Behaviour Studies, Matching the demand for rental housing among locals and the Holiday Villa Resorts & Spa, Langkawi Island, increasing number of foreign workers/students in the country has Malaysia, “ 18-19 Dec 2019 caused private house rentals to increase every year. e-IPH e-International Publishing House Ltd., United Kingdom ” Currently, in Malaysia, there is Government is introducing E-B an absence of specific Residential Tenancy Act Environment- Behaviour in Malaysia, to be adopted Proceedings laws governing rental Journal according to suitability from the housing. Instead, it considers tenancy act in New South as a part of the law contract. Wales and Victoria, Australia. There are several other laws (some of which are old and in need of renewal) that National Contract Distress Specific Civil Laws apply to Land Code Act 1950 Act 1951 Relief Act Act 1956 residential rental: 1965 1950 AcE- Bs2019 Langkawi PURPOSE of the Study Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 e-IPH This study analyzes the landlord's e-International Publishing House Ltd., United Kingdom perception on the introduction of the E-B Residential Tenancy Act (RTA) in Environment- Behaviour Proceedings Malaysia as a tool to administer the tenancy Journal process to protect the landlords' and tenants' rights better. The results will reflect percentages of landlords ' agreement to introduce RTA, as well as the reasons behind any support and rejection. AcE- Bs2019 Langkawi OBJECTIVES of the Study Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 To analyse landlords' acceptance or refusal e-IPH towards the introduction of the Residential e-International Publishing House Ltd., United Kingdom Tenancy Act in Gombak District, Selangor 1 E-B Environment- Behaviour Proceedings Journal To identify the impacts of new proposed act towards landlords 2 To propose appropriate measures and recommendations in response to the findings of the study for better implementation of the 3 Residential Tenancy Act AcE- Bs2019 Langkawi LITERATURE Review Island 8th Asian Conference on Environment-Behaviour Studies, A landlord is the owner of a house, apartment, condominium, or Holiday Villa Resorts & Spa, Langkawi Island, Malaysia, property which is rented or leased to an individual or business. 18-19 Dec 2019 A landlord is usually related closely to the market, which means renting e-IPH a house to the tenant; it involves the process of business (Mae, 2008) e-International Publishing House Ltd., United Kingdom Types of Landlords E-B Environment- Behaviour Proceedings Journal Private Landlord Sub-Landlord Wilson & Flaum (2003) define private landlord as Person who is being let a residence by a a property owner who chooses to rent out landlord and subsequently sublets it to their property themselves. They will not use any another tenant. The owner of the house might be letting agent or property management company. staying away from the rented house. Thus, he or Instead, they will manage the housing rental she will hire a person to replace them to manage directly (Salt & Miner, 1999). the rented house (Salt & Miner, 1999). AcE- Bs2019 Langkawi METHODOLOGY of research Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Data Collection Data Analysis Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 e-IPH e-International Publishing House Ltd., United Kingdom E-B Environment- Behaviour Proceedings Journal Questionnaire Survey Descriptive Analysis Respondents in Cross Tabulation 50 Gombak District Section A : Respondents’ Profile Cross Display the relationship Section B : Landlords’ experiences and Tabulation: between variables, which is perceptions towards renting then supported by chi- process square analysis. Section C : Landlord’s perceptions Likert Scale: Measure respondents' towards the perceptions based on four implementation of RTA options: strongly agree, agree, strongly disagree, and disagree. AcE- Bs2019 Langkawi FINDINGS and Analysis Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Respondents’ Socio Demographic Profile 1 Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 Types of Landlords Respondents’ Age Respondents’ Ethnic e-IPH e-International Age Publishing House Ltd., United Self- 31-40 Kingdom Managed 10% Chinese 16% 22% E-B Age 51-60 Environment- 38% Behaviour Malay Proceedings Journal Sub-Landlord Age 41-50 78% 84% 52% 50 Household Income 45 40 44% 35 40% More than RM7,000 40% 30 Self-Managed 25 Sub-Landlord 20 RM5,000 to RM 6,999 58% 15 10 12% 5 Below RM4,999 2% 4% 0 Male 56% Female 44% 0 10 20 30 40 50 60 70 AcE- Bs2019 Langkawi FINDINGS and Analysis Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Rental Services 2 Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 Types of Rental Rental Housing Characteristics e-IPH e-International Publishing House Ltd., United Variable Component Percentage (%) Kingdom Room Below RM500 14% Rental E-B RM501-RM1,000 58% Environment- House 34% Behaviour Rental Rate Proceedings Rental Journal More than 28% 66% RM1,001 Per House 66% Types of Per Room 34% 60 54 Rental 50 Per Person 0% 40 34 Fully Furnished 30 20% Character- 20 12 Partially Furnished 40% 10 istics 0 0 0 Unfurnished 40% AcE- Bs2019 Langkawi FINDINGS and Analysis Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Landlord’s Experiences 3 Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 Purpose of House Rental Tenancy Deposit e-IPH e-International Publishing House 8% Inherited Property Ltd., United Kingdom 14% Pension Investment 90 84% 16% Buy-to-Let Investment E-B 80 Environment- Behaviour Proceedings Private/Individual 70 Journal 62% Investment 60 50 Method of House Rental 40 0% Poster 30 Property Agent Newspaper 20 16% Friends/ Family/ 10 34% 0% Neighbours 0 66% Property Website 1+1 2+1 2+1+1 AcE- Bs2019 Langkawi FINDINGS and Analysis Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Landlord’s Perception on the Introduction of RTA 4 Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 Acknowledgement on Terms to be included in RTA the introduction of RTA e-IPH 66% e-International Publishing House Ltd., United 58% Deposit term Kingdom Agreement on the introduction of RTA payment E-B 30% Disagreed (including the types of deposit to be paid by Environment- the tenant and the landlord's return of the Behaviour Proceedings deposit to the tenant) Journal 70% Agreed 56% Amount of rent to be paid by tenant 12% Less Awareness on the 54% Moving out at the end of Implementation of RTA the rental term 12% Higher Cost of Implementation Less Significant Terms Perception of the details 72% Lack of of the council tax, utilities, Knowledge and other charges for 58% services included in Disagree about RTA the rent. AcE- Bs2019 Langkawi FINDINGS and Analysis Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Significant Relationship Between Landlords' Spa, Langkawi Island, Malaysia, 18-19 Dec 2019 Refusal towards the Introduction of the 5 Residential Tenancy Act and the Refusal Factors e-IPH e-International Publishing House Ltd., United Kingdom % of Landlords Requiring the RTA Cross Tabulation Table of E-B 12% Require Landlords’ Requiring the Environment- Behaviour Proceedings Residential Tenancy Act Journal 88% Did not Require and the Refusal Factors Refusal Factors Lack of Lack of Knowledge Higher Cost of Awareness on the Total Variable Component regarding the Implementation implementation Residential of RTA Tenancy Act Unit % Unit % Unit % Unit % Require the Yes 6 12.0 0 00.0 0 0.0 6 12.0 Residential Tenancy No 2 4.0 36 72.0 6 12.0 44 88.0 Act Source: Questionnaire Survey, 2019 AcE- Bs2019 Langkawi FINDINGS and Analysis Island 8th Asian Conference on Environment-Behaviour Studies, Holiday Villa Resorts & Relationship Between Landlords’ Requiring the Spa, Langkawi Island, 6 Malaysia, 18-19 Dec 2019 Residential Tenancy Act and the Refusal Factors e-IPH e-International Relationship Between Landlords’ Requiring the Residential Tenancy Act and Publishing House Ltd., United Kingdom the Refusal Factors Asymptotic Significance Value df E-B (2-sided) Environment- Behaviour Pearson Chi-Square 19.431ª 2 .000 Proceedings Journal Likelihood Ratio 13.384 2 .001 Linear-by-Linear Association 12.374 1 .000 N of Valid Cases 50 Source: Questionnaire Survey, 2019 Based on the table above, the result showed that the degree of freedom is 2 with 19.431calculated chi-square. Meanwhile, the result of Asymptotic Significance is less than 0.05, which is 0.000. Therefore, both of the variables are significantly
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