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🇲🇾 11 years in Malaysian property · Every figure sourced and dated
Buying Guide · Stage 5: After you get the keys

Renting Out Your Property in Malaysia: Rent, Tenants, Tenancy Agreement and Handover

Renting out property in Malaysia puts more on the landlord than most people expect, because three of the usual safety nets do not exist here. NAPIC publishes no residential rental index, so there is no official benchmark for your rent. As at 24 September 2026 Malaysia still has no Residential Tenancy Act, so your tenancy agreement is the rulebook. And the familiar deposit formula is convention, not law. This guide runs the process in order: how to price the rent honestly, what the Seventh Schedule says the agent’s letting fee is, where the PDPA 2010 line sits when you screen a tenant, the clauses that actually matter, how 2026 tenancy stamp duty is calculated, what to record at handover, and what a landlord must never do when the rent stops.

No official residential rental indexLetting fee 1.25 months (1 month minimum)1 + 2 + 0.5 deposit is conventionStamp duty RM1-RM7 per RM250Self-help eviction is unlawfulVerified 2026-09-20

Short answer

Renting out property in Malaysia starts with three facts: there is no official residential rental index (NAPIC’s rental indices cover shopping centres and offices only), there is still no Residential Tenancy Act, and the 1 month advance + 2 months security + 0.5 month utility deposit package is convention, not law. The agent’s letting fee under the Seventh Schedule is 1.25 months’ gross rental for a term up to three years, minimum one month. Since 1 January 2025, tenancy stamp duty has been RM1 to RM7 per RM250 of annual rent.

Key numbers at a glance

Official rental indexNone; NAPIC publishes shopping centre and office rental indices only
Usable proxyGlobalPropertyGuide gross yields Q1 2026: Johor Bahru 5.31%, KL 4.86%
Agent letting fee1.25 months' gross rental (term up to 3 years), minimum 1 month (Seventh Schedule)
Rent review fee50% of the letting fee (renewals labelled differently by one source; unresolved)
Deposit convention1 + 2 + 0.5, about 3.5 months; no law regulates it
Tenancy stamp dutyRM1 / RM3 / RM5 / RM7 per RM250 of annual rent, by term
Self-help evictionUnlawful; s.7(2) Specific Relief Act 1950
Where disputes goMagistrates below RM100,000; Sessions above; no tenancy tribunal

Key points in 30 seconds

  • Malaysia publishes no residential rental index. NAPIC’s only rental indices cover shopping centres and purpose-built offices, and neither PropertyGuru nor iProperty publishes a Malaysian rental index. The honest proxies are GlobalPropertyGuide’s gross yields (Q1 2026 survey), Khazanah Research Institute’s KL rental study, and live listings in the actual building.
  • The agent’s letting fee under the Seventh Schedule (Valuers, Appraisers and Estate Agents (Amendment) Rules 2009) is 1.25 months’ gross rental for a tenancy up to 3 years, subject to a minimum of 1 month; 1.50 months to 4 years and 1.75 months beyond. Rent reviews are 50% of the letting fee. Only a registered estate agency (REA) may charge.
  • Screen tenants inside the PDPA 2010 principles: collect only what you need to judge identity and ability to pay, give written notice of what you collect and why, get consent before any check, and destroy unsuccessful applicants’ documents.
  • The deposit convention is 1 month advance rent + 2 months security + 0.5 month utility deposit – about 3.5 months, plus access-card charges. No Malaysian law caps, regulates or protects a residential deposit.
  • From 1 January 2025 the RM2,400 exemption is gone and tenancy stamp duty is RM1 per RM250 of annual rent for a term up to a year, RM3 for one to three years, RM5 to five and RM7 beyond. On RM2,500 a month: RM120 for a one-year term, RM360 for two years.
  • An unstamped tenancy is still valid as a contract, but it is generally inadmissible in evidence until it is stamped – so you cannot sue on it as it stands.
  • If the rent stops, a landlord may not change the locks, cut utilities or remove belongings: section 7(2) of the Specific Relief Act 1950 says possession can be recovered only by proceedings in court. The two lawful routes are a warrant of distress for arrears and a civil suit for possession – Magistrates Court below RM100,000, Sessions Court above. There is no tenancy tribunal in Malaysia.

How do you set the rent when Malaysia publishes no rental index?

Start with the fact that shapes everything else: Malaysia has no official residential rental index. The only rental indices NAPIC publishes are the Shopping Center Rental Index Report and the Purpose-Built Office Rental Index Report – both commercial. Its residential series (the Malaysian House Price Index, the Serviced Apartment Price Index, the Property Market Report) are price and transaction series, not rental series. Neither PropertyGuru nor iProperty publishes a Malaysian rental index either; their market reports track sale prices.

So when someone tells you “the official data says rents here are X”, ask for the publication. Here are the three references I actually use, each with its limits stated.

What a Malaysian landlord can honestly benchmark against, September 2026
SourceWhat it gives youThe limits
GlobalPropertyGuide gross rental yields, Q1 2026 surveyMalaysia average 5.27%; Johor Bahru 5.31%, Iskandar Puteri 5.78%, Kuala Lumpur 4.86%Built from asking rents over list prices, not transactions, so it reads high. Gross only – their own note says net yields are “typically around 1.5% to 2% lower”. Attribute it by name every time
Khazanah Research Institute, A Quick Look at the KL Residential Rental Affordability Market, 12 December 2025The most serious Malaysian study of residential rentsKuala Lumpur only – do not stretch it to Johor. KRI names NAPIC as its source of KL rental prices, while NAPIC’s public pages carry no residential rental series. I record that conflict rather than resolve it
Live listings and lettings in your own buildingThe number closest to the one you have to setAsking rents are not signed rents. Cross-check with the management office, agents active in the block, and owners who let recently

The method I use

  1. Pull at least ten listings for the same block, same layout and size, noting floor, condition, furnishing level and car parks.
  2. Separate fully furnished from bare unit completely. They are two different markets and averaging them produces a number that fits neither.
  3. Ask the management office or an agent active in the block what has actually been signed in the last three months. There is usually a gap between asking and signed.
  4. Sanity-check against GlobalPropertyGuide’s area gross yield: multiply your purchase price by the area’s gross yield and divide by twelve. If the result is far from your intended rent, one of the two assumptions is wrong.
  5. Then decide your vacancy tolerance. Holding out for another RM100 and losing two months rarely pays. The maths is in rental yield.
Louis’s note: there is no rent control and no cap on rent increases in Malaysia. Rent, notice and renewal terms are pure contract under the Contracts Act 1950. That is freedom and exposure at the same time – whatever you leave out of the agreement, nobody will fill in for you later.

What is the agent's letting fee in Malaysia? The Seventh Schedule scale

First, who may charge. The regulator is the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH / BOVAEP) under Act 242. Only a Registered Estate Agent’s firm may charge a fee; a Real Estate Negotiator (REN) works under an REA and carries a REN tag. How to verify both is in REN vs REA and commissions.

Scale of fees for estate agency practice – Seventh Schedule (Rule 48), from the Board's own fee page, read 24 September 2026
ServiceFee
Letting, tenancy up to 3 years1.25 months’ gross rental
Letting, exceeding 3 and up to 4 years1.50 months’ gross rental
Letting, exceeding 4 and up to 5 years1.75 months’ gross rental
Letting, exceeding 5 years1.75 months’ gross rental
Exceeding 5 years with an option to renew1.75 months, plus 0.25 months for every additional year
Minimum letting fee1 month’s rental (a term of under a year may be calculated pro rata)
Rent reviews50% of the fees chargeable under lettings
Sale of land and buildingsMaximum 3%, minimum RM1,000 per property
This corrects a very common line. You will read everywhere that the letting fee “is one month’s rent”. The schedule says 1.25 months, subject to a one-month minimum. One month is what the market often settles at; 1.25 is the scale. Negotiate by all means, but know which number you are negotiating away from.

Renewal fees, and charges that sit outside the scale

One honest ambiguity. The Board’s fee page prices that 50% line expressly for “Rent reviews“. An REA firm reproducing the same schedule labels the identical line “Renewals / Rent reviews“. Both versions are on the record, so I will not state a renewal fee as a settled figure. Before you sign an appointment letter, ask the agent to point to the line in the Schedule that the fee comes from.

Separately: a “disbursement fee”, “admin fee” or “processing fee” charged on top of the scale is outside it, and the Board’s page requires the prior concurrence of the client for additional claims for expenses. On tax: 8% service tax (SST) applies to the agency’s professional fee if the firm is SST-registered – but residential lettings themselves are excluded from service tax, so you do not charge SST on the rent you collect.

A worked example

Rent of RM2,500 a month on a one-year tenancy, let through an REA firm: the fee is 1.25 x RM2,500 = RM3,125. If the firm is SST-registered, add 8% (RM250) for a total of RM3,375. Note the tax treatment: LHDN Public Ruling 12/2018 treats the agent’s commission for the first tenant as a non-deductible initial expense, while the cost of renewing a tenancy or changing tenant is deductible. Details in rental income tax and the tenancy agreement.

Where the small savings get expensive

Two shortcuts cost the most. Not stamping: at RM2,500 a month on a one-year term the duty is only RM120, but an unstamped tenancy is generally inadmissible in evidence, so when you need to recover arrears or possession you must stamp it first and pay whatever penalty then applies. No handover record: the deposit is unregulated and there is no protection scheme, so the dated inventory and photographs are the only evidence of the unit’s condition. Without them, any deduction you make is indefensible.

Ask Louis directly
Send me your draft tenancy and the unit details and I'll check the agent's fee against the Seventh Schedule and mark the clauses I would add.

Tell me the project, layout and furnishing level and I'll pull recent listings and actual lettings in that building for you, and send a handover inventory template you can use.

Tenant screening in Malaysia: what the PDPA 2010 lets you collect and keep

Screening is where landlords most often step over a line without noticing. The Personal Data Protection Act 2010 (Act 709) governs personal data processed “in respect of commercial transactions”. Its seven principles include the General principle (consent), Notice and Choice (s.7 – written notice of what you collect, why, and to whom it may be disclosed), Disclosure, Security, Retention (s.10 – data must not be kept longer than necessary and obsolete data must be destroyed), Data Integrity, and Access. The penalty for breaching a principle was a fine up to RM300,000 or 2 years’ imprisonment; the Personal Data Protection (Amendment) Act 2024 raised it to RM1,000,000 and 3 years, commencing in stages on 1 January, 1 April and 1 June 2025, the last of which brought in mandatory data protection officers and mandatory breach notification.

An open point, stated honestly: whether an individual letting out a single home is inside the PDPA at all is unresolved. Section 45(1) exempts personal data processed by an individual only for personal, family or household affairs, while a tenancy is arguably a commercial transaction, and no Malaysian decision or Commissioner guidance settles it. An agency, a letting platform or a landlord with a portfolio is plainly a data controller. My advice is to assume it applies – the safe practice is identical either way.

What to collect

  • Sight of the IC or passport for identity verification (for a foreign tenant, also check that the pass or visa covers the tenancy term);
  • An employment letter or recent payslips, or for the self-employed the company registration and bank statements – for one purpose only: can they pay;
  • The current or previous landlord’s contact, called only after the applicant agrees;
  • A short written notice stating what you collect, why, how long you keep it and who you may disclose it to (the management office for tenant registration, your agent);
  • Number of occupants, intended use, pets, and whether subletting or short-term letting is contemplated – all of which then go into the agreement.

What not to do

  • Do not offer to “run a CTOS or CCRIS check” on a tenant. CCRIS is Bank Negara’s system and is not open to landlords. CTOS does sell a tenant-screening product launched in 2021, but it is consent-based, and tenancy is not among the permitted purposes CTOS itself lists. If you want a report, the tenant authorises it and produces it.
  • Do not collect more than you need to judge identity and affordability. Bank balances, family details and social-media access are not yours to ask for.
  • Do not keep or pass on an unsuccessful applicant’s documents. Under the retention principle, copies you did not need should be destroyed.
  • Do not put a screening criterion in writing that you would not want quoted back to you. The legal position, stated accurately: Malaysia has no law prohibiting racial discrimination in the private rental market, and Article 8(2) of the Federal Constitution has been held to bind the State rather than private parties. That is a fact, not a recommendation; discrimination is one of the gaps the unpassed Residential Tenancy Act is meant to close.
Louis’s note: the order I suggest to landlords is affordability first (income against rent), stability second (continuity of job and address), fit last (how they communicate, how they treat the unit at the viewing). The first two need documents. The third needs you to meet them. On fraud, see property scams and red flags.

What goes in a tenancy agreement when Malaysia has no Residential Tenancy Act?

As at 24 September 2026 the Residential Tenancy Act has still not been tabled. The Minister of Housing and Local Government said on 5 February 2026 that it “is currently under review and has now reached its final stage”, with the hope that it could be passed in the Dewan Rakyat that year; no tabling was found when this was checked. So what actually governs your tenancy today is:

  • the Contracts Act 1950 – the agreement is the law between you;
  • the National Land Code 1965 – a term exceeding three years is a lease, not a tenancy, and is registrable against the title;
  • the Specific Relief Act 1950 – possession can only be recovered through the court (see the last section);
  • the Distress Act 1951 – the warrant of distress for arrears;
  • the Stamp Act 1949 – stamping.
What having no RTA really means: eviction procedure, deposit handling, repair obligations, rent increases, discrimination, notice periods and dispute resolution are exactly the things a tenancy statute would supply by default. Here, you have to write them all into the agreement yourself. A thin agreement leaves you arguing from “market practice”, and market practice is not a provision a court can enforce.

The clauses that actually earn their place

  1. Parties and property: full names, IC or passport numbers and addresses; the full address, unit number, car park numbers and the number of access cards.
  2. Term and commencement date; whether there is an option to renew, and how much written notice a renewal needs. This one clause decides whether you face a surprise vacancy every year.
  3. Rent, due date and payment method, plus what happens when it is late – grace period and how late-payment interest is calculated. Do not leave it as “to be agreed”.
  4. What each deposit is: advance rent, security deposit and utility deposit listed separately, with what each covers, the conditions for deduction, and the number of days for refund.
  5. Repairs split: what is the landlord’s (structure, waterproofing, fair wear on original equipment) and what is the tenant’s (bulbs, choked drains, damage from misuse), with a ringgit threshold above which it becomes the landlord’s.
  6. Use restrictions: residential only, no subletting, no short-term or homestay letting – and for strata, the management’s additional by-laws apply too (see strata by-laws). Pets, occupant numbers, and no drilling or alteration without written consent.
  7. Who pays what: water, electricity, internet and refuse to the tenant; maintenance charges, sinking fund, assessment, quit rent and fire insurance to the landlord – which is also the basis of what you may deduct at tax time.
  8. Access: how many hours’ written notice you must give for viewings or repairs, with an emergency exception.
  9. Early termination: each side’s exit right and its price. The common practice is notice plus forfeiture of the security deposit, but the notice period and the amount must be written, not assumed.
  10. Termination and redelivery: the condition the unit must be returned in (fair wear and tear excepted), cleaning standard, return of keys and access cards, and the consequence of holding over.

Watch the three-year line. Cross it and the document becomes a registrable lease, with different formalities, a different stamp duty band, and a letting fee that steps from 1.25 to 1.50 months. Most residential tenancies are written for one or two years precisely to stay below it.

How many months' deposit, and how much is tenancy stamp duty in 2026?

The deposit: 1 + 2 + 0.5 is convention, not law

The standard Malaysian package is 1 month advance rent + 2 months security deposit + 0.5 month utility deposit – about 3.5 months’ rent on the table before move-in, plus whatever the management charges for access cards and keys. Separately, an earnest deposit of one month typically holds the unit for around seven days and is then rolled into the first month’s rent or the security deposit.

Say this plainly: no Malaysian law caps, regulates or protects a residential deposit. There is no ceiling, no escrow or deposit-protection scheme, and no statutory refund deadline. So “the legal deposit is two months” is simply wrong. Because there is no law, the agreement is the only rule – what each deposit covers, what may be deducted and how many days the refund takes all have to be written in. And no source anywhere publishes a standard access-card deposit, so take the management’s written figure.

On rent of RM2,500: advance rent RM2,500 + security RM5,000 + utility RM1,250 = RM8,750, plus card charges. That is a real barrier for a tenant, and it is also the only cushion you will ever have – so take it, and document it.

Tenancy stamp duty: the rates in force since 1 January 2025

The Finance Act 2024 [Act 862] amended Item 49 of the First Schedule to the Stamp Act 1949: from 1 January 2025 the RM2,400 annual-rent exemption is removed, and duty is charged per RM250 of annual rent (any part of RM250 counts as a full unit) at a rate that depends on the term. LHDN’s own First Schedule guideline (LHDN.AG.600-1/10/3, dated 30 June 2026) confirms the figures. What changed on 1 January 2026 is the procedure, not the rates – tenancies moved to self-assessment on that date.

Tenancy stamp duty from 1 January 2025
Term of the tenancyDuty per RM250 of annual rentBefore 1 January 2025
1 year or lessRM1RM1, on annual rent above RM2,400
More than 1 and up to 3 yearsRM3RM2, on annual rent above RM2,400
More than 3 and up to 5 yearsRM5RM4, on annual rent above RM2,400
More than 5 yearsRM7RM4, on annual rent above RM2,400

Worked through. At RM2,500 a month, annual rent is RM30,000, which is 120 units of RM250:

  • One-year term: 120 x RM1 = RM120
  • Two-year term: 120 x RM3 = RM360
  • At RM1,800 a month on a one-year term: RM21,600 / 250 = 86.4, rounded up to 87 units x RM1 = RM87
The stamping deadline is two 30-day clocks. Tenancies were Phase 1 of stamp duty self-assessment from 1 January 2026 (Phase 2, transfers of ownership, follows in 2027; Phase 3 in 2028). Section 47 of the Stamp Act is unchanged: the stamp duty return (BNDS) is due within 30 days of execution, and the duty is then payable within 30 days of the date the return was submitted. Keep the two apart – filing on time but paying late still attracts the penalty. The penalty is section 47A as amended by the Finance Act 2024, in force since 1 January 2025: RM50 or 10% of the deficient duty within three months, RM100 or 20% after that, whichever is higher. For an instrument executed between 1 January 2023 and 31 December 2025, PKPS 2026 remits that penalty in full if the duty is paid during 2026 – see rental income tax and the tenancy agreement.

One more thing worth knowing: an unstamped tenancy is still valid. In Malayan Banking Bhd v Agencies Service Bureau Sdn Bhd the Federal Court held that failure to stamp “only affects the admissibility of the instrument in evidence, but it does not render that particular instrument to be invalid”. The practical consequence for a landlord is blunt: you cannot sue on an unstamped tenancy without stamping it first and paying whatever penalty then applies. The tax side of letting is in rental income tax and the tenancy agreement.

Projects I am working on

Want to see what you can actually buy?

The rules are above; these are the actual homes. Each page lists the projects I am tracking, with published price ranges and the date each figure was checked. Tell me the area on WhatsApp and I will send the current list.

Handover: inventory, meter readings and access cards

Something counter-intuitive first: no Malaysian statute requires a handover inventory or a condition report for a residential tenancy. There is no RTA, and nothing in the Contracts Act 1950 or the Stamp Act imposes one. It is contract and convention.

Which is exactly why it matters. Because the deposit is unregulated and there is no deposit-protection scheme, the record the two of you make on handover day is the only evidence that exists about the condition of the unit – and it is the document a court would look at. Treat it as compulsory, just for a different reason: not because the law requires it, but because nothing else will protect either of you.

  • Inventory of furniture and appliances: brand, model, quantity, condition, signed item by item, attached to the agreement as a schedule rather than kept on a loose sheet;
  • Dated photographs or video of every room – walls, floors, cabinetry, bathrooms, windows and insect screens, ceilings, air-conditioner vents;
  • Water and electricity meter readings, with a photograph of each meter, and the utility account numbers;
  • Keys and access cards: how many, their numbers, and the management’s replacement charge if one is lost;
  • Dates of the last air-conditioner service and any filter changes, so “who failed to service it” is not an argument later;
  • A defects list: what is already wrong at handover, signed by both, with the items the landlord will fix and by when;
  • Register the tenant with the management office, hand over the cards and keep the acknowledgement; confirm the tenant knows the car park number and visitor rules.
Louis’s note: on move-out, walk the same list again, item by item, photographing as you go. If you deduct from the deposit, give a written breakdown with documents – repair quotations, cleaning receipts – not just a number. Most deposit disputes are not about the money; they are about the absence of a basis for it.

When the rent stops: what a landlord must not do, and the two lawful routes

This is the most important section on the page. Section 7(2) of the Specific Relief Act 1950 provides:

“Where a specific immovable property has been let under a tenancy, and that tenancy is determined or has come to an end, but the occupier continues to remain in occupation of the Property or part thereof, the person entitled to the possession of the Property shall not enforce his right to recover it against the occupier otherwise than by proceedings in the Court.”

In plain terms: once the tenancy has ended and the tenant stays, the only way to get the property back is through the court. That provision extinguishes a landlord’s right of self-help. Changing the locks, cutting water or electricity, and removing the tenant’s belongings are all forbidden, and a landlord who does it risks being sued under section 8 of the same Act.

I will not give you a “you can take it back after X days” rule, because there is no such thing. The “28 days” figure circulating online is not statutory – it is one firm’s number. The notice period is whatever your tenancy says; where the agreement is silent, the common-law rule for a periodic tenancy applies (at least one full period’s notice). That is precisely why the agreement section above matters.

The lawful sequence

  1. Written reminderSend a written demand in the manner the tenancy specifies, stating the periods outstanding, the amount and a deadline. Keep proof of despatch and receipt.
  2. Notice to quitTerminate the tenancy in accordance with its terms and demand the arrears. This is usually issued by a solicitor and becomes a key document in any later proceedings.
  3. Choose your objective: the money, or the propertyArrears can be pursued through a warrant of distress under the Distress Act 1951. Getting the property back requires a civil suit for vacant possession and arrears. They can run in parallel, but a warrant of distress by itself will not make the tenant leave.
  4. Judgment and writ of possessionOnce the court has ordered possession, eviction is executed by the court bailiff, with police in attendance. The landlord does not carry it out.
  5. Double rental for holding overUnder section 28(4)(a) of the Civil Law Act 1956, a tenant who remains in occupation after the notice expires is liable for double rental.

What a warrant of distress actually does

  • Under section 5(1) of the Distress Act 1951, a landlord may apply for a warrant to seize and sell the tenant’s movable property on the premises to satisfy arrears.
  • The limit: only up to 12 months of arrears, being the 12 months immediately preceding the date of application. The longer you let it run, the more you simply cannot recover – the most practical argument there is against waiting.
  • Court: the Magistrates Court where arrears are below RM100,000, the Sessions Court above that.
  • Exempt from seizure: items actually in use at the time of seizure; the tenant’s and family’s necessary clothing and bedding; goods the tenant holds for ordinary business purposes; and an inn guest’s belongings.
  • Process: seizure, inventory and valuation, then written notice giving the tenant 5 days to pay before any sale. Proceeds cover bailiff fees, the arrears and costs, with the surplus returned to the tenant.
  • Distress is for arrears, not for possession. If you want the tenant out, you still need the step above.

Where the dispute goes – and why there is no tenancy tribunal

From the Judiciary’s own page on subordinate court jurisdiction: the Sessions Court hears civil cases including “disputes between the landlord and tenant” valued above RM100,000 but not exceeding RM1,000,000, and has “unlimited jurisdiction to try all actions and suits of a civil nature in respect of motor vehicle accidents, landlord and tenant and distress”. The Magistrates Court handles disputes of less than RM100,000.

There is no residential tenancy tribunal in Malaysia. The two housing tribunals that exist cover something else: the Tribunal for Homebuyer Claims hears buyer-against-developer claims up to RM50,000 (see homebuyer tribunal claims), and the Strata Management Tribunal hears strata management claims up to RM250,000 (see the Strata Management Act, JMB and MC). Neither hears a landlord-and-tenant dispute. A tenancy tribunal is among the things expected in the unpassed RTA – but expected is not enacted.

And the point that ties this page together: to run any of this, your tenancy has to be stamped. An unstamped agreement is generally inadmissible in evidence, so it has to be stamped first, with whatever penalty then applies, at exactly the moment you are already out of pocket. The tax and filing side of letting is in rental income tax and the tenancy agreement, and the flat 30% that applies to non-resident owners, including most Singaporean landlords, is in rental income tax for non-residents.

Related questions

Related questions

Is it better to let a unit furnished or unfurnished in Malaysia?

No Malaysian official data compares the two, so the honest test is your own building: group furnished and bare listings separately and compare like with like rather than averaging them. Then price in three things the headline rent hides – how many years the furniture and appliances take to pay back, replacement and repair at every change of tenant, and the fact that renovation and fit-out are not deductible against rental income, only ordinary repairs are. The money and approvals side is in renovation budgeting and financing.

Can a landlord keep the whole deposit if the tenant leaves early?

Only if the agreement says so. Malaysian law prescribes nothing about early termination, so the break clause in your tenancy is the only basis. The usual structure is a required notice period, with forfeiture of the security deposit if it is not given. Two cautions: write both the notice period and the consequence, rather than a bare “deposit not refundable”, and give a written breakdown with quotations or receipts for anything you deduct. Whatever the agreement omits, you will be arguing about.

Do I need different insurance once the property is tenanted?

If there is a loan, the bank already requires fire insurance with itself as loss payee. Once you let, confirm two things with the insurer: that the policy still responds while the property is tenanted, and whether you want houseowner or householder cover adding third-party liability and loss of rent. In a strata building the JMB or MC insures the whole building and the premium sits inside your maintenance charge – but that does not cover your own fit-out or contents. See home insurance and MRTA.

Do I have to declare rental income to LHDN every month?

No – annually, not monthly. Rental income is taxed on the net amount, rent less allowable expenses, in your annual return: progressive rates for residents and a flat 30% for non-residents. Deductible items include assessment, quit rent, loan interest, fire insurance, rent-collection fees and ordinary repairs. Not deductible: the agent’s commission for the first tenant, the legal cost and stamp duty of the first tenancy, and renovation. The full list and the forms are in rental income tax and the tenancy agreement.

FAQ

Frequently asked questions

How much is the agent's letting fee in Malaysia – one month or 1.25 months?

Under the Board’s Seventh Schedule (Rule 48), letting a tenancy of up to three years is 1.25 months’ gross rental, subject to a minimum of one month; it is 1.50 months for three to four years and 1.75 months beyond four, and rent reviews are 50% of the letting fee. One month is what the market often settles at, not what the scale says. Only a registered estate agency may charge, and 8% SST is added to the professional fee if the firm is SST-registered.

How many months' deposit can a landlord ask for in Malaysia?

There is no legal answer, because no Malaysian law caps, regulates or protects a residential deposit, and there is no deposit-protection scheme. The convention is one month’s advance rent, two months’ security deposit and half a month’s utility deposit – about 3.5 months, plus access-card charges. Since nothing is regulated, the tenancy agreement is the only rule: set out what each deposit covers, what may be deducted, and the number of days for the refund.

How much is stamp duty on a tenancy agreement in Malaysia in 2026?

From 1 January 2025 the RM2,400 exemption is gone (the Finance Act 2024 amended Item 49; what 2026 brought was self-assessment, not a rate change) and duty runs per RM250 of annual rent (part of RM250 counts as a whole unit): RM1 for a term of a year or less, RM3 for more than one up to three years, RM5 for more than three up to five, and RM7 beyond five. At RM2,500 a month, a one-year tenancy is RM120 and a two-year tenancy is RM360. Who pays is a matter for the agreement; the tenant usually bears the duty on the original.

Is an unstamped tenancy agreement valid in Malaysia?

Yes, it is valid as a contract. The Federal Court in Malayan Banking Bhd v Agencies Service Bureau Sdn Bhd held that failure to stamp affects only the admissibility of the instrument in evidence, not its validity. The practical problem is what happens when you need it: you cannot sue a tenant on an unstamped tenancy without stamping it first and paying the penalty then applicable. Stamping is not what makes the agreement work – it is what lets you use it.

Can a landlord change the locks or cut the electricity if the tenant stops paying?

No. Section 7(2) of the Specific Relief Act 1950 states that where a tenancy has ended and the occupier remains, the person entitled to possession shall not enforce his right to recover it otherwise than by proceedings in court. Changing locks, cutting utilities and removing belongings are unlawful self-help, and the tenant can sue under section 8 of the same Act. The lawful routes are a warrant of distress for the arrears and a civil suit for possession, executed by the court bailiff.

Is there a tenancy tribunal in Malaysia for landlord and tenant disputes?

No. Landlord-and-tenant disputes go to the civil courts: the Magistrates Court for claims under RM100,000 and the Sessions Court above that, and the Sessions Court has unlimited jurisdiction over landlord and tenant and distress matters. The Tribunal for Homebuyer Claims (up to RM50,000) hears buyer-against-developer claims and the Strata Management Tribunal (up to RM250,000) hears strata management claims; neither covers a tenancy. A tenancy tribunal is expected in the Residential Tenancy Act, which has not been tabled.

Can I run a CTOS or CCRIS check on a prospective tenant?

Not on your own initiative. CCRIS is Bank Negara’s system and is not open to landlords. CTOS has sold a tenant-screening product since 2021, but it is consent-based, and tenancy is not listed among the permitted purposes CTOS itself publishes. The workable approach is to have the applicant authorise and produce a report, or to rely on the documents you should be collecting anyway: sight of the IC or passport, an employment letter or payslips, and bank statements for the self-employed – with written notice of why you are collecting them.

Sources & verification

  1. LPPEH (Board of Valuers, Appraisers, Estate Agents and Property Managers) — Scale of Fees, Seventh Schedule (Rule 48)
  2. Jordan Lee & Jaafar — REA professional fees (Seventh Schedule reproduced)
  3. LHDN — Garis Panduan Pengenaan Duti Setem (Jadual Pertama, Akta Setem 1949), LHDN.AG.600-1/10/3, 30 June 2026
  4. RDS Law Partners — Key stamp duty changes in Malaysia from 1 January 2026
  5. NAPIC — latest publications index (rental indices are commercial only)
  6. GlobalPropertyGuide — Malaysia gross rental yields, survey Q1 2026
  7. Khazanah Research Institute — A Quick Look at the KL Residential Rental Affordability Market (12 Dec 2025)
  8. Office of the Chief Registrar of the Federal Court — Jurisdiction of Sessions Court and Magistrates Court
  9. Chern & Co — Eviction of a tenant in Malaysia (s.7(2) Specific Relief Act 1950 quoted)
  10. Kevin Wu & Associates — Tenancy law in Malaysia: evicting tenants
  11. Thomas Philip — The landlord's guide to distress actions (Distress Act 1951)
  12. The Star — Understanding the warrant of distress (14 Dec 2025)
  13. Fareez Shah & Partners — The validity of unstamped agreements in Malaysia
  14. Personal Data Protection (Amendment) Act 2024 (Act A1727) — Department of Personal Data Protection
  15. DFDL — Malaysia: implementation of the Personal Data Protection (Amendment) Act 2024
  16. CTOS — Summary of rights under the Credit Reporting Agencies Act 2010
  17. EdgeProp — Residential Tenancy Act to be tabled this year, says minister (5 Feb 2026)

Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.

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Louis Koh

11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文

I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.

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