PETALING JAYA: A landlord’s rented property could unknowingly become a base for vice and crime, but legal experts say there are ways for homeowners to escape liability.
Former federal Criminal Investigation Department (CID) assistant director Datuk S. Shanmugamoorthy said owners can only be held liable if authorities can prove they knew about the illegal activities and failed to act.
“If police want to act against the homeowner, there must be evidence that the owner was either directly involved, or was fully aware of the activities and failed to take necessary action to stop or report it,” he said.
Shanmugamoorthy, who is also a lawyer, said proving this could be a challenge for investigators.
“It is not easy to take action against homeowners or to prove they were aware. But there are areas that can be probed. This could include CCTV footage showing the owner visiting the premises, financial trails linking illegal proceeds to the owner’s bank accounts or witness accounts from neighbours,” he said.
He said complicating matters further is the growing trend of sub-letting.
Shanmugamoorthy pointed out that in many cases, the main tenant may not be involved in any wrongdoing but sublets the property to others who carry out illegal activities
“This creates multiple layers of tenancy, which makes it even harder to establish who knew what,” he said.
National House Rental Association (NHRA) president Prakash P. Kalivanan said most landlords rent out their properties in good faith.
“They should not be unfairly penalised for illegal acts of their tenants that were not in their knowledge,” he said.
However, Prakash said landlords should exercise reasonable responsibility and diligence when renting out their properties.
He stressed that having a documented tenancy agreement is one of the most important safeguards and failing to do so could expose owners to greater risk.
“This is why having a tenancy agreement stamped by the Inland Revenue Department is important for homeowners to safeguard themselves. Terms and conditions in the agreement that prohibit illegal activities will show that tenants have been clearly reminded and are bound by them,” he said.
Among the illegal activities the NHRA is aware of are cases involving illegal cryptocurrency mining, prostitution, loansharking activities, storing stolen goods and harbouring illegal immigrants.
To protect themselves, Prakash urged landlords to take precautionary steps including conducting background checks on tenants, carrying out periodic inspections and maintaining proper documentation such as identification records and payment history.
“If homeowners become aware of suspicious or illegal activities, they should immediately report the matter to the authorities,” he said.
