Tenancy Agreement Malaysia 2026: Complete Guide
1. Essential Components of a Tenancy Agreement
Mandatory Elements
- Full names and NRIC/passport numbers of all parties (landlord + all tenants)
- Full property address with description
- Tenancy term: Start date, end date, and renewal provisions
- Monthly rent: Amount, due date, payment method
- Security deposits:
- Security deposit: 2 months' rent
- Advance rental: 1 month
- Utility deposit: 0.5-1 month
- Maintenance responsibilities: Who handles what (structural vs. minor)
- Usage restrictions: No subletting, pet policy, commercial use
- Termination clause: Notice period (typically 2 months)
- Permitted alterations: What renovations/changes are allowed
- Stamp duty payment: Who pays (typically tenant)
2. Tenancy Stamp Duty (Stamping)
Must be stamped at LHDN within 30 days of signing
| Annual Rent | Stamp Duty Rate | |---|---| | First RM 2,400 | Exempt | | Above RM 2,400 | RM 1 per RM 250 |
Example: Monthly rent RM 2,500 = Annual rent RM 30,000 Stamp duty = (RM 30,000 - RM 2,400) / 250 = RM 110.40
3. Landlord Rights and Obligations
- Rights: Receive rent on time, inspect property with notice, terminate for breach
- Obligations: Maintain structural integrity, provide habitable conditions, not disturb quiet enjoyment
- Cannot: Enter without notice (minimum 24-48 hours notice as per agreement)
4. Tenant Rights and Obligations
- Rights: Quiet enjoyment, deposit refund at end (less legitimate deductions)
- Obligations: Pay rent on time, maintain property condition, not sublet without permission
- Deposit refund: Landlord must return within 30 days of vacant possession + deduction notice
5. Proposed Residential Tenancy Act (RTA)
- Malaysia does not have a dedicated Residential Tenancy Act (unlike Singapore/UK)
- Disputes currently resolved via civil courts or Tribunal for Consumer Claims
- Proposed RTA in 2026 would standardize deposit amounts, notice periods, and dispute resolution
Key Takeaways
- Stamp your tenancy agreement within 30 days at LHDN (digital via MyTax)
- Security deposit typically 2 months + 1 month advance + 0.5 month utility = 3.5 months upfront
- No Malaysia-specific Residential Tenancy Act yet (proposed 2026)
- Disputes go to Tribunal for Consumer Claims (below RM 50,000) or Civil Court
- Always use a professionally drafted TA — verbal agreements are unenforceable