What Is a Tenancy Agreement in Malaysia?

A tenancy agreement is a legally binding document between the property owner and the tenant. It explains how the property may be occupied, how much rent must be paid, what deposits are collected, who handles repairs and how either party may end or renew the tenancy.

A clear written agreement does not prevent every disagreement, but it reduces uncertainty. Verbal promises about furniture, repainting, parking, pets, internet charges or early termination are difficult to prove later unless they are recorded in the agreement or an attached inventory.

What Should a Malaysia Tenancy Agreement Include?

• Full names, identification or passport details and contact details of both parties
• Complete property address, unit number and car-park allocation
• Tenancy commencement date, expiry date and renewal option
• Monthly rent, payment date, bank details and late-payment consequences
• Security deposit, utility deposit and any access-card or key deposit
• Furniture, appliances and condition recorded in an attached inventory
• Repair, servicing and maintenance responsibilities
• Rules on subletting, short-term stays, pets, smoking and business use
• Inspection access, notice requirements and emergency access
• Early termination, diplomatic clause, renewal and handover conditions

Malaysia Tenancy Agreement Stamp Duty Rates in 2026

LHDN’s 2026 guideline states that lease duty under Item 49(a) is calculated for every RM250, or part of RM250, of annual rent and other annual consideration. The rate depends on the total lease period.

How to Stamp a Tenancy Agreement Through MyTax in 2026

1. Ensure the agreement has been completed and signed by the relevant parties.
2. Log in to the MyTax portal.
3. Select ezHASiL Services → Stamp Duty → e-Duti Setem.
4. Submit the instrument details and supporting document requested by the system.
5. Complete the assessment or self-assessment process applicable to the document.
6. Pay the assessed stamp duty using the available online payment method.
7. Download the electronic stamp certificate and keep it together with the signed agreement.

When must the agreement be stamped?

An instrument executed in Malaysia should generally be stamped within 30 days from the date it is executed. An instrument executed outside Malaysia should generally be stamped within 30 days after it is first received in Malaysia.

Late stamping may result in a penalty. Do not wait until a dispute, deposit claim or court matter begins before checking whether the agreement was properly stamped.

Rental Deposits in Johor Bahru: What Should Be Written Clearly?

Malaysia does not have one universal deposit amount that applies to every private residential tenancy. Market practice often refers to a security deposit and utility deposit, but the actual amount, payment date, permitted deductions and refund process should be expressly agreed.

Security deposit

The agreement should explain whether the deposit may be used for unpaid rent, damage beyond fair wear and tear, missing items, unauthorised alterations, cleaning or other breaches.

Utility deposit

State whether this covers electricity, water, sewerage, internet or management-related charges. The final refund should be based on the bills, account status and evidence available at handover.

Refund timeline

Avoid vague terms such as “deposit will be refunded later.” State the expected refund period, what final bills must be received first and how any deduction will be documented.

Landlord Responsibilities to Record

• Provide the property and listed contents in the agreed condition
• Confirm which structural, major appliance or building-related repairs remain the owner’s responsibility
• Respect the tenant’s occupation and follow the agreed access or inspection notice
• Issue receipts or maintain clear payment records
• Give an itemised explanation for deposit deductions
• Deal with management-office, access-card and owner-account matters where applicable

Tenant Responsibilities to Record

• Pay rent and agreed charges on time
• Use the unit only for the permitted purpose
• Take reasonable care of furniture, appliances and access cards
• Report leaks, defects or damage promptly
• Do not sublet, operate short-term accommodation or alter the unit without consent
• Return the unit, keys and listed items according to the handover terms

Why an Inventory and Handover Report Matter

The tenancy agreement should be supported by an inventory and condition report containing photos or videos taken before the tenant moves in. Record walls, flooring, furniture, appliances, sanitary fittings, meter readings, access cards and existing defects.

Both parties should acknowledge the report. This is especially important for furnished condominiums around JB City Centre, CIQ, RTS, Southkey, Danga Bay, Tebrau and Iskandar Puteri, where disputes often involve appliances, furniture condition or access cards rather than unpaid rent alone.

Clauses Foreign Tenants and Landlords Should Check

• Diplomatic clause: whether early termination is allowed due to employment transfer, visa issues or relocation
• Notice period: when the clause may be used and how notice must be delivered
• Supporting proof: documents required before the clause is accepted
• Currency and bank charges: whether rent must be paid in ringgit and who bears transfer fees
• Occupant details: names of family members or authorised occupants
• Immigration documents: whether valid passport or pass information must be maintained

Common Tenancy Agreement Mistakes

• Using a generic template without matching the actual property and furniture
• Leaving the deposit refund and deduction process unclear
• Not recording existing defects before key collection
• Assuming the tenant may operate Airbnb or sublet the unit
• Using unclear repair limits without defining major and minor repairs
• Failing to state notice delivery methods
• Forgetting to stamp the agreement within the required period
• Relying on WhatsApp promises that were never added to the final agreement

Frequently Asked Questions