Reviewed by Khairul Anwar, MIEA-registered Real Estate Negotiator (REN), BOVAEP-registered firm (K. Anwar & Co., REN #23XXX), last reviewed 2026-06-23. First published 2026-06-23. This page is informational and does not replace advice from a licensed tax agent or lawyer for your specific tenancy.
In Malaysia, the property agent's fee for renting out a unit is paid by the landlord — usually 1.25 months' rent under the MIEA convention. Tenants pay nothing to the agent. Here's how it's calculated, when SST applies, and what is tax-deductible.
According to SPEEDHOME managed-portfolio data (2024–2025 sample), the all-in placement-plus-management cost on its platform runs at 2.19% of monthly rent — against the MIEA-convention agent band of 1–1.75 months' rent paid up front at signing — so landlords who compare quotes before engaging typically avoid the lump-sum placement commission and pay a smaller, monthly platform fee instead.
What is the agent fee for rental in Malaysia?
In Malaysian residential rentals, the property agent's commission is paid by the landlord — not the tenant. The standard rate follows the Malaysian Institute of Estate Agents (MIEA) convention: 1.25 months' gross rent for a tenancy up to 3 years, scaled higher for longer terms.
Malaysian law does not fix property agent fees. The Valuers, Appraisers, Estate Agents and Property Managers Act 1981 governs who can hold an agent's licence, not the fee amount they charge. Most residential tenancies fall in the 1 to 1.25 months' rent bracket. The tenant normally pays nothing to the agent.
SST applies to registered real-estate-agent services under a different Service Tax Group than residential rent, and the rate can shift between Budget cycles. Ask the agent for the current rate and confirm it on the invoice before signing.
How is the commission calculated?
Agent commission is a multiple of one month's gross rent, scaled by how long the tenancy runs. The minimum is one month's rent regardless of duration. SST (where applicable) is added on top of the commission, not inside it.
The landlord pays the commission at or around signing. Negotiate the scope — what the agent does after signing — before agreeing to the fee.
Worked example. On a RM2,000/month 12-month tenancy, MIEA-convention commission is RM2,500 (1.25 months); add current SST on top. The table below shows the full calculation and what scales it.
| Item | Calculation | Amount |
|---|---|---|
| Gross rent (12 months) | RM2,000 × 12 | RM24,000 |
| Agent commission (1.25 months' rent) | RM2,000 × 1.25 | RM2,500 |
| SST on commission (confirm current rate with agent) | RM2,500 × current rate | Variable |
| Total payable by landlord | Commission + SST | RM2,500 + SST |
For tenancies over 3 years, the rate moves to the 1.50 or 1.75 band shown in the table above.
What to confirm before signing the engagement letter
- Written scope of services — what the agent will and will not do, itemised (see the scope letter list below).
- Agent's MIEA/BOVAEP registration — only a registered Real Estate Agent (REA) or Registered Estate Negotiator (REN) may legally charge an estate-agency fee; ask for the registration number.
- Total fee, SST-inclusive — the commission plus the SST the agent will invoice, as a single number, before you sign.
- Who pays and when — confirm it is the landlord, that the fee is due on tenancy signing (not on listing), and the trigger for any renewal or replacement-tenant fee.
| Tenancy duration | Standard commission (MIEA convention) |
|---|---|
| Up to 3 years | 1.25 months' gross rent |
| Over 3 years to 4 years | 1.50 months' gross rent |
| Over 4 years to 5 years | 1.75 months' gross rent |
| Over 5 years (no renewal option) | 1.75 months' gross rent |
| Over 5 years (with renewal option) | 1.75 months + 0.25 months per additional year |
Source: MIEA. Maximum rates; 1 month's rent is the minimum in all bands. SST applies on the commission — confirm the current rate with the agent before signing. Convention, not statute — the actual fee is negotiable between landlord and agent.
What does the commission actually buy?
Agent commission typically covers the placement workflow up to signing. A written scope letter should enumerate these items explicitly:
Usually included in the placement fee: - Tenant sourcing (listings, marketing, database search) - Conducting property viewings with prospective tenants - Basic negotiation on tenancy terms between landlord and tenant - Getting the tenancy agreement signed (preparation of a standard tenancy template is administrative; legal drafting is not included) - Collecting the initial deposit and first month's rent on the landlord's behalf, where agreed
Usually NOT included — confirm in writing if you want these: - Ongoing rent collection after signing - Late-payment follow-up and reminder workflow - Repair and maintenance coordination - Move-out inspection and dispute handling - Renewal negotiations (a separate fee, typically ~0.5 month's rent by industry convention, is common) - Re-letting fees if the first tenant leaves early
Confirm the exact scope in writing before agreeing to a fee. If anything on the second list is missing, ask whether it is bundled, capped at an additional fee, or simply out of scope.
Does the tenant ever pay an agent fee?
No, in a standard Malaysian residential tenancy the tenant does not pay the property agent's commission. The landlord engages and pays the agent for tenant placement. If a letting agent asks a tenant directly for a placement fee, ask for the arrangement in writing, confirm who engaged the agent, and check the agent's MIEA/BOVAEP registration.
Is the agent fee tax-deductible for landlords?
Partly — and the timing matters. Agent commission for the first tenant is not deductible; commission for a renewal or subsequent tenant is.
Under LHDN Public Ruling 12/2018 (para 8.3), costs of getting the first tenant are initial expenses and are not deductible against rental income. Agent commission for the first letting falls in this category.
Agent commission for a renewal or subsequent tenant is deductible as a direct expense under para 8.2 of the same ruling — because it is a cost of producing income from an already-established letting, not a cost of creating the income source. For a fuller breakdown of deductible versus non-deductible landlord expenses, see the Malaysian landlord tax deductions guide.
Is there an agent fee if I list on SPEEDHOME?
SPEEDHOME operates as a managed platform, not a placement agent. Landlords who list on SPEEDHOME are not charged the standard MIEA-convention agent commission for tenant placement.
Instead, SPEEDHOME signs a master tenancy arrangement and handles rent collection and tenant management through its platform. The structure is materially different from placing a tenant through an agency and then self-managing.
| Path | What the landlord pays at signing | What the landlord pays monthly | Tenant placement |
|---|---|---|---|
| MIEA-convention agent (1.25-month band) | 1.25 months' gross rent + applicable SST | None to the agent; landlord self-manages | By the agent |
| SPEEDHOME master-tenancy structure | No placement commission | 2.19% of monthly rent (platform fee) | By SPEEDHOME |
For tenants, SPEEDHOME-listed units include a Zero Deposit option on qualifying units — Zero Deposit is a managed rental-risk system that replaces the upfront cash deposit. It is not a financial guarantee product; in the rare case of severe end-of-tenancy damage the recoverable amount can be limited. Not every unit qualifies.
Browse SPEEDHOME-managed rentals where Zero Deposit is offered on qualifying units.
For a full cost and scope comparison between an agent, a property management company and the platform path, see the agent vs SPEEDHOME landlord comparison. To browse listings directly, visit /rent.
FAQ
Can the agent fee be negotiated below the MIEA convention?
Yes — the MIEA scale is a convention, not a statutory cap. Because Malaysian law does not fix property-agent fees, a landlord can quote a lower figure, propose a staged fee tied to tenant move-in milestones, or bundle it into a property-management retainer. In practice, registered agents will rarely drop below one month's rent on a standard placement because that is the conventional floor, but the headline 1.25-month figure is a starting point, not a fixed price. Document any agreed reduction in the engagement letter so it survives a change of negotiator at the agency.
Is the 0.5-month renewal fee customary or negotiable?
It is customary industry practice, not a fixed rate. Most agents charge roughly half a month's rent to negotiate and prepare a renewal with an existing tenant, and many include a small SST uplift on top. The fee is negotiable — and on SPEEDHOME-managed tenancies, renewals run inside the platform without a separate renewal commission.
What happens to the agent fee if the tenancy is cancelled before signing?
It depends on what the engagement letter says. A standard MIEA-convention placement fee is usually invoiced on tenancy signing, not on listing, so a deal that falls through before signing should not trigger payment. Where the agent has done viewings, marketing, or negotiation work that the landlord has accepted, some agents claim a partial fee — get this in writing before signing. Always check the cancellation clause and the refund / non-refund trigger before paying.
What SST rate applies to agent commission in Malaysia?
SST applies on the agent's commission, but the exact rate can change between Budget cycles. The service-tax treatment of registered real-estate-agent fees sits under a different Service Tax Group than residential rent, and only an agent registered for service tax may invoice it. Ask the agent for the current rate and confirm it on the invoice before paying.
Can I rent out my property without paying an agent fee?
Yes. Self-managing or listing through a platform avoids the MIEA-scale placement fee. Self-managing means finding your own tenant, running viewings, preparing the tenancy agreement and handling everything after signing yourself. A platform workflow handles the listing, screening and agreement stamping inside one system, with rent collection after move-in. The no-agent landlord guide covers both paths.
Is the agent fee for the first tenant deductible against rental income tax?
No. LHDN Public Ruling 12/2018 classifies agent commission for the first letting as an initial expense — a cost of creating the income source, not producing income from it. It is not deductible under Section 4(d). Agent commission for a renewal or change of tenant is deductible.
When does the landlord pay the agent fee — and what if the first tenant leaves early?
The standard trigger is tenancy signing, not listing. Most MIEA-convention contracts invoice the commission once a tenant is found and the tenancy agreement is signed — a few agents invoice only after the first month's rent is collected. Always confirm the trigger in the engagement letter before you sign. If the first tenant leaves before the agreed term, the re-letting fee clause kicks in: some agents charge a fresh full commission on the replacement tenant, some charge a reduced rate, and a few refund a prorated portion of the original fee. The clause should specify the re-letting fee, the refund basis, and whether the original commission is treated as non-refundable.