Can tenant sub-let the property/premises?
In a recent case decided by Yang Arif Dato Ahmad Bin Bache, Yow Khai Cheng v Li Tiam Chai (Appeal No. WA-12BNCVC-63-06/2019), it was held that a tenant CANNOT sub-let the premises without the written permission of the Landlord, even if there was no such clause or terms stipulated in the tenancy agreement, as it is deemed to be implied.
The reasoning behind this is that the Landlord in renting out his premises would like to know what happens to his premises thereafter and what does the Tenant do with it. If the tenant decides to sub-let the premises, the Landlord has the right to know and to be able to allow or deny the tenant from doing so.
It is clear that it is implied in the tenancy agreement that tenant CANNOT sub-let premises without written permission of the Landlord. The Court has taken the position that this decision is fair or else the tenant will be unfairly enriched.
In conclusion, it is particularly important for tenant to first get a written approval or consent from Landlord in order to sub-let the premises to another. Failing which, the tenant would be in breach of the tenancy agreement.
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