Tenancy Agreement Essentials for Landlords & Tenants
In Malaysia there is no Residential Tenancy Act in force, so your written agreement does most of the heavy lifting. Here is what both sides should get right before signing.
Renting in Malaysia runs on contract, not on a dedicated housing-tenancy statute. That makes the written tenancy agreement unusually important: it is the main rulebook if anything goes wrong. Whether you are a landlord protecting an asset or a tenant protecting a deposit, time spent getting the agreement right is time well spent.
No Tenancy Act yet — the agreement is king
There is often talk of a Residential Tenancy Act, but as things stand in 2026 it is not yet law. In its absence, a tenancy is governed by the terms you both sign plus general law — principally the Contracts Act 1950, the Specific Relief Act 1950 and, for rent arrears, the Distress Act 1951. Because so much rests on the document, vague or missing clauses tend to cause the disputes.
Deposits and stamping
Two money points trip people up most. First, deposits follow convention, not statute — so they are negotiable. Second, a tenancy agreement should be stamped, with stamp duty calculated on the annual rent and the term of the tenancy.
| Item | Typical market practice |
|---|---|
| Security deposit | Around 2 months’ rent |
| Utility deposit | Around 0.5 month’s rent |
| Advance rent | Usually 1 month |
| Stamp duty | Based on annual rent and the term (a statutory charge) |
What every tenancy agreement should cover
- Names of the parties, the property, the rent and the exact term.
- Deposit amounts and the conditions for their return.
- Who pays utilities, maintenance, assessment and other charges.
- Rules on repairs, subletting, early termination and renewal.
- A clear inventory and the condition of the property at move-in.
Ending a tenancy and handling disputes
Because there is no tenancy tribunal, landlord–tenant disputes generally go to the civil court. A landlord cannot simply lock a tenant out or seize belongings at will; for genuine rent arrears there is a formal process under the Distress Act 1951. For both sides, the cleanest protection is a well-drafted agreement that spells out notice periods, termination and what happens to the deposit.
Renting out or renting in? Start with a solid agreement
If you are a landlord or tenant and want to make sure the tenancy is set up properly, I am happy to share what to look for and point you to the right help. I am Louis Koh, over a decade in Johor Bahru property.
Frequently asked questions
Is there a tenancy law in Malaysia?
There is no Residential Tenancy Act in force as of 2026; one has been proposed but is not yet law. Tenancies are governed by the written agreement plus general law such as the Contracts Act 1950, Specific Relief Act 1950 and Distress Act 1951.
How much deposit is normal for a rental in Malaysia?
By market convention, around 2 months’ rent as a security deposit plus about half a month for utilities, often with one month’s advance rent. These are conventions rather than legal requirements, so they are negotiable.
Do I need to stamp my tenancy agreement?
Yes, a tenancy agreement should be stamped, with stamp duty calculated based on the annual rent and the term of the tenancy.
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