In Malaysia, property agents charge a standard commission of 1 to 1.75 months of gross rent under MIEA convention, typically 1.25 months for leases up to three years. The landlord pays this fee upon signing plus the commonly-quoted 8% SST (the applicable rate depends on the RMCD classification of the agent's service). Under LHDN Public Ruling 12/2018, commission is tax-deductible only for subsequent tenants, not the first tenant.
Property agent commission in Malaysia — 2026 snapshot (figures current as of 2026-10):
| Item | 2026 figure / status |
|---|---|
| Agent commission (MIEA convention) | 1 to 1.75 months of gross rent, once-off; the 1.25-month band is typical for leases up to 3 years |
| SST on the commission | 8% commonly invoiced (raised from 6% on 1 March 2024; actual rate per RMCD classification) |
| SPEEDHOME managed-model landlord fee | 2.19% + SST of monthly rent, charged only once the unit is tenanted |
| SPEEDHOME Standard plan | RM799 + SST per year (flat, no protection); Protect = 1 month of rent |
| Renewal agreement stamping | Within 30 days — late penalty RM50 or 10% (within 3 months), RM100 or 20% (beyond 3 months) |
How much does a property agent charge for renting out a property in Malaysia?
A property agent in Malaysia charges a one-off commission of 1 to 1.75 months of gross rent under the Malaysian Institute of Estate Agents (MIEA) convention — scaled by tenancy duration, not by rent quantum. The landlord pays. SST at 8% is added on top of the commission. This is market convention, not statute.
SPEEDHOME platform records (managed tenancy cohort) show that landlord-side disputes cluster in the first 90 days after agent handover, with the dominant triggers being late-rent follow-up and deposit-deduction disagreements — the exact operational gaps that a placement-only commission does not cover, and the reason a single counterparty for placement plus ongoing management materially changes the recovery path.
The exact figure you pay depends on how long the tenancy runs, not on how much rent you charge. A unit on a two-year tenancy attracts a 1.25-month gross rent multiplier regardless of the monthly rental amount — the commission scales with duration, not with the monthly amount. Most Malaysian residential tenancies fall in the 1 to 1.25 months bracket.
That rate is not fixed by law. It is the MIEA convention that most registered estate agents follow. The actual fee is negotiable in writing between the landlord and the agent before signing. Before you price the fee, the market itself is visible — See live listings on SPEEDHOME for current rental availability.
What is the full MIEA commission table for residential rentals?
The MIEA publishes a duration-based scale for residential lettings only. One month's rent is the minimum in every band. Anything above the band rate requires written agreement. (Serviced apartments and offices follow a separate MIEA schedule and are not covered in the table below.)
| Tenancy duration | Standard agent commission (MIEA convention) |
|---|---|
| Up to 3 years | 1.25 months of gross rent |
| Over 3 years to 4 years | 1.50 months of gross rent |
| Over 4 years to 5 years | 1.75 months of gross rent |
| Over 5 years (no renewal option) | 1.75 months of gross rent |
| Over 5 years (with renewal option) | 1.75 months + 0.25 months per additional year |
Source: Malaysian Institute of Estate Agents (MIEA). Maximum rates for residential lettings, excluding serviced apartments and offices. 1 month's rent is the minimum in all bands. SST at 8% applies on the commission amount. Convention, not statute — the actual fee is negotiable.
For example, on a two-year tenancy at the 1.25-month band, the commission equals 1.25 months of gross rent plus 8% SST on that commission amount, invoiced once at or around signing. Once paid, the agent's placement role is complete.
How the commission interacts with tax (LHDN Public Ruling 12/2018)
Work the deductibility question in three steps, using the same band example above:
- Compute the commission — 1.25 months of gross rent on a tenancy of up to 3 years, plus 8% SST on the commission amount, invoiced once at or around signing.
- Identify which tenancy it pays for — the first tenant to occupy the property, or a subsequent tenant placed after the first tenancy.
- Apply the ruling — under LHDN Public Ruling 12/2018, the commission is tax-deductible only for a subsequent tenant; the commission paid to place the first tenant is not deductible.
Practically: a landlord claiming the expense for a replacement tenant keeps the invoice, the agency agreement and the tenancy dates that show the placement was a subsequent one; the same paperwork for a first tenancy does not produce a deduction.
Who actually pays the commission — landlord, tenant, or both?
The landlord pays the agent's commission in a standard Malaysian residential tenancy. Tenants pay the agent nothing. The fee is paid once, at or around signing, and is not refundable if the tenancy proceeds.
Some agents ask tenants for a small "agency fee" or processing charge at viewing stage. Treat that request with care: the law does not require a tenant to pay the agent anything, and the arrangement should be in writing with a clear basis before any money changes hands. Where dual-side collection does occur, it is a professional-conduct and conflict-of-interest issue rather than a clean rule either way; confirm the basis with the agent in writing before paying.
What does the agent's commission actually cover?
The commission typically covers tenant sourcing, viewings, basic negotiation, and shepherding the tenancy to a signed agreement. It does not automatically include rent collection, repair coordination, late-payment follow-up or move-out dispute handling.
That gap matters. Once the cheque clears, the agent's contractual relationship with the landlord ends. Rent arrears, breakdowns, complaints, deposit disputes at handover — all of it falls back on the landlord unless another arrangement is in place. Confirm the exact scope in writing before agreeing to a fee.
What is typically included — and what is not
Understanding the scope boundary protects the landlord from mismatched expectations. The table below reflects the conventional placement-only scope that corresponds to the MIEA 1–1.75 month commission:
| Service | Typically included in standard commission | Typically excluded |
|---|---|---|
| Advertising and listing the unit | Yes | — |
| Conducting viewings | Yes | — |
| Tenant screening (basic) | Yes (name/IC check; depth varies) | Credit score, employment verification |
| Drafting the tenancy agreement | Yes | Legal review of non-standard clauses |
| Coordinating execution and signing | Yes | — |
| Collecting security deposit | Usually | Post-handover deposit management |
| Handing over keys | Usually | — |
| Monthly rent collection | No | Landlord's responsibility |
| Late-payment follow-up | No | Landlord's responsibility |
| Maintenance coordination | No | Landlord's responsibility |
| Move-out inspection and dispute | No | Landlord's responsibility |
| Eviction support | No | Landlord's responsibility |
Scope varies by agent and firm; confirm everything in the engagement letter.
Is the commission a fixed legal rate?
No. MIEA sets a conventional scale that most registered agents follow, but it is not statute. The Valuers, Appraisers, Estate Agents and Property Managers Act 1981 governs who can call themselves an estate agent and what register they must be on — not the specific fee amount. The rate is negotiable between a landlord and a registered agent.
Three practical implications:
- A registered agent can quote below the band. The MIEA scale is a maximum. Some agents discount for longer tenancies, portfolio landlords, or quiet locations.
- An unregistered person cannot legally charge an estate-agency fee. Only a registered REA (Real Estate Agent) or REN (Real Estate Negotiator) under a registered firm can charge commission for rental placement. If the person quoting is not on the LPEPH/BOVAEP register, the "fee" is not a lawful estate-agency fee. Verify the agent's REN registration on the LPEPH public register before signing.
- The fee must be agreed in writing. A verbal quote has limited recourse. A one-page engagement letter naming the rate, the scope, and the parties avoids disputes later.
If the agent's fee is unclear or feels padded, get a one-page letter before paying.
What SST rate applies to the agent's commission?
SST applies on the agent's commission amount; 8% is the commonly-invoiced rate. A registered agent charging 1 month's gross rent as commission will typically invoice 8% SST on that sum. The landlord pays both; the agent remits the SST portion to the Royal Malaysian Customs. Rate history: the standard rate rose from 6% to 8% on 1 March 2024, and the rental/leasing service-tax rate is 8% from 1 July 2025 (live MySST FAQ) and covers rental/leasing, not agency fees — the rate that applies depends on the RMCD classification of the service, so check the agent's SST invoice against mysst.customs.gov.my.
Some older guides still show 6% — that rate was replaced in January 2024. If a quote shows SST 6%, the agent is using a stale figure. Confirm the SST-inclusive total in writing before signing the engagement letter.
Is the commission tax-deductible against rental income?
Partly — and the timing matters. The split is direct from LHDN Public Ruling 12/2018:
| When the agent is engaged | Deductible against rental income? |
|---|---|
| Getting the first tenant | No — classified as an initial expense (cost of creating the income source, not producing income from it) |
| Renewal or change of tenant (subsequent tenant) | Yes — direct expense wholly and exclusively incurred in producing the rental income |
For a typical landlord: commission paid to find the first tenant cannot be claimed against rental income in any YA. Commission paid for a renewal or for finding a second/third tenant can. Keep the invoice and the TA copy in the same file so the audit trail is clean. See the rental income tax guide for landlords for the full deduction list.
What does a property management company charge — and how is it different?
A full-service property management company typically charges an ongoing fee on a monthly basis, plus a separate tenant-sourcing placement fee (around 1 month's rent) and sometimes a renewal fee. Management fee models vary by provider and property type, so ask which model applies before signing.
A property management company handles ongoing rent collection, tenant follow-up, repair coordination, and periodic inspections — though scope varies widely by provider and the fine print of the management agreement.
The trade-off: a management company gives the landlord ongoing cover at a known monthly cost, but the landlord loses direct contact with the tenant and the scope of "full management" is often narrower than the brochure implies. For a single-unit landlord the ongoing fee can outweigh the convenience, especially when only one or two issues a year need handling.
How does SPEEDHOME operate differently from a placement agent?
The platform is a managed rental platform, not a placement agent. The platform signs the tenancy agreement directly with the landlord, becomes the legal tenant, and places an end-user tenant in the unit — handling rent collection, maintenance coordination, and tenant follow-up for the life of the tenancy.
The structure is materially different from placing a tenant through an agency and then self-managing. The landlord's counterparty throughout the tenancy is SPEEDHOME — not the end-user tenant. For the cost of one month's rent given to SPEEDHOME per year (Protect), the landlord receives that ongoing operational cover without the agent's one-off exit.
On qualifying units, tenants also have the option of moving in without paying an upfront cash deposit under SPEEDHOME's Zero Deposit programme. Zero Deposit is a managed rental-risk system that replaces the upfront cash deposit — it is not a financial guarantee product, and not every unit qualifies. Where it applies, it materially lowers the tenant's barrier to entry, which is a vacancy-reduction lever for the landlord.
| Cost dimension | Property agent (one-off) | Property management (ongoing) | SPEEDHOME Standard | SPEEDHOME Protect |
|---|---|---|---|---|
| Tenant placement | 1–1.75 months rent (MIEA) | ~1 month sourcing fee | Included | Included |
| Ongoing rent collection | Not included | Included | Included | Included |
| Late-rent handling | Landlord's problem | Provider follows up | SPEEDHOME follows up | SPEEDHOME pays landlord first, recovers from tenant |
| Maintenance coordination | Not included | Included (scope varies) | Included | Included |
| Eviction support | Not included | Rarely included | Not included | Included |
| Fee structure | 1–1.75 months rent (once-off) + 8% SST | Monthly management fee + placement fee | RM799 + SST/yr + 2.19%/month | 1 month rent/yr + 2.19%/month |
SPEEDHOME list prices are published as the headline subscription and processing-fee figures; prices are subject to SST where applicable and to the current plan wording on the SPEEDHOME landlord page. Verify the SST-inclusive total before relying on any figure.
How do you choose between an agent, a management company, and SPEEDHOME?
Use the rough shape of your situation, not a generic recommendation. A landlord with one unit, comfortable handling edge cases themselves, and a budget for a lump sum will likely prefer the agent model. A landlord with several units or no time for follow-up will likely prefer a managed platform.
A practical decision frame, by landlord situation:
- One unit, hands-on landlord. If you are comfortable chasing late rent, coordinating breakdowns, and running your own move-out, an agent at the MIEA 1.25-month rate is straightforward. Budget 1 to 1.75 months of gross rent once off at signing plus 8% SST, then own the follow-up from month one. The price is upfront, but the ongoing operational load is yours.
- Multiple units, hands-off landlord. If you want consistent operations across several units and will pay a known monthly cost for the cover, a management company gives predictable execution — confirm the scope in writing before signing, because "full management" is often narrower than the brochure.
- One unit, want a single counterparty. If the operational layer is the part you do not want to run, SPEEDHOME Protect is the closest match. SPEEDHOME becomes the contractual tenant, handles rent collection and repair coordination, and pays the landlord first on late rent under the plan terms. The trade-off is giving up direct contact with the end-user tenant.
- Overseas or non-resident landlord. A managed platform is the realistic path — verify plan coverage and landlord-portal visibility before listing. Cross-border landlords face three concrete friction points: appoint a local representative with signatory authority on the tenancy agreement so renewals and deposit releases do not stall on your absence; plan for rental income repatriation — Malaysian rental income is taxable in Malaysia under LHDN rules, and transferring it overseas triggers bank paperwork that can take 2–4 weeks per transfer; and budget for non-resident stamp duty on the tenancy agreement (typically 2× the resident rate) if you are not ordinarily resident in Malaysia.
What should you check before signing an engagement letter with any agent?
Before committing to any agent's commission, run four checks: confirm the REN or REA tag on the LPEPH register, verify the firm name against the SSM company record, obtain the engagement letter in writing with the fee and SST treatment stated, and confirm the commission is payable into the registered firm's bank account — never a personal account.
These are not optional cautions. They are the only defensible verification flow before money moves.
Verifying the agent's registration
Only an LPEPH-registered Real Estate Agent (REA) firm — and the Real Estate Negotiators (RENs) employed under it — can lawfully charge an estate-agency fee for a Malaysian residential rental placement, under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981. The public register at lpeph.gov.my is the sole source of truth.
Search by the negotiator's full name and by the REN tag. Confirm three things: the tag is active, the negotiator's name matches the person quoting, and the firm linked to the tag is the firm on the engagement letter. A discrepancy in any of those three is an unresolved verification issue — stop until it is resolved in writing.
The engagement letter
A one-page engagement letter is the minimum before any viewing commitment, verbal fee agreement or payment. It should state: the commission amount (in ringgit or as a month multiplier), the SST treatment (amount and rate stated separately), the scope of service (what is included and what is not), the registered firm's name and account details, and the conditions under which it is earned (successful placement on a signed TA). Without this, a verbal commission quote has very limited recourse in the event of a dispute.
The receiving account
Commission is paid to the registered firm's bank account, not to the individual negotiator's personal account. A personal-account request is one of the clearest signals that the engagement is not properly running through the firm. If the agent insists on a personal transfer "for convenience," treat it as unresolved and ask for the firm invoice and firm bank account in writing before paying.
What happens after the agent has been paid and the tenancy begins?
Once the commission is paid and the tenancy agreement is signed, the agent's contractual role ends. Everything that follows — rent collection, arrears chasing, maintenance coordination, move-out inspection, deposit deduction disputes — becomes the landlord's sole responsibility unless a separate arrangement is in place.
SPEEDHOME platform records (managed tenancy cohort) show that landlord-side disputes cluster in the first 90 days after agent handover, with the dominant triggers being late-rent follow-up and deposit-deduction disagreements. A placement-only commission covers the signing; the operational risk lives in this window.
Rent arrears after agent handover
If the tenant falls into arrears, the landlord must chase recovery independently. There is no contractual relationship between the agent and the tenant after the TA is signed. Practical options are: demand letters from the landlord directly, mediation through the Residential Tenancy Act framework (where applicable), or court action for a debt. None of those routes are part of the agent's commission.
A landlord on SPEEDHOME Protect or Protect+ is not in the same position: SPEEDHOME is the contractual tenant, and the arrears follow-up — including first-paying the landlord under the plan terms — is handled within the existing commercial relationship, not by the landlord alone.
Deposit disputes at move-out
A deposit-deduction dispute at the end of a tenancy — whether the landlord is entitled to deduct for damage, cleaning, or outstanding rent — is one of the most common friction points in Malaysian residential lettings. The agent who placed the tenant is under no obligation to mediate or participate. If an inventory list was not prepared at move-in, the landlord's ability to prove the pre-tenancy condition is materially weakened. Keeping a dated, photographic inventory at key handover is the landlord's responsibility from day one.
Maintenance calls during the tenancy
Maintenance calls — air-conditioning breakdown, plumbing failure, electrical faults — are the landlord's to coordinate during the tenancy. There is no obligation on the agent to respond to, triage, or manage repair calls that arise after signing. The landlord deals directly with the tenant and the contractor. For landlords who do not want to run this layer, a managed platform with explicit maintenance coordination in its scope is the relevant alternative.
Renewal versus new placement: does the commission apply again?
A tenancy renewal is not a new placement, and the full MIEA 1–1.75 month commission for a new letting is not the standard rate for a renewal. The market convention for a straightforward renewal — same tenant, broadly the same terms — is around half a month's rent, plus 8% SST on that amount. An agent who quotes the full new-letting rate for a simple renewal is quoting above convention; ask for the scope and the basis in writing.
There is no statute that mandates a renewal commission at all. If the landlord and tenant are happy to renew directly — by preparing an addendum to the original tenancy agreement, signing both copies, and stamping through e-Duti Setem (mytax.hasil.gov.my) within 30 days — no agent involvement is legally required. The only mandatory step is stamping.
When an agent adds value at renewal
Renewal may justify an agent fee when the rent needs to be renegotiated, the terms require a material amendment, or the landlord is not able to coordinate directly with the tenant. In those cases, a scoped engagement letter with the renewal fee stated upfront — and a clear list of what the agent is actually doing — is the correct structure. A flat "one month's rent" for keying in the same terms is not convention; it is the new-letting rate applied to a simpler task.
The stamp duty requirement at renewal
Regardless of whether an agent is involved, every tenancy renewal must be stamped within 30 days of the agreement date. Since January 2026, the LHDN STAMPS portal has been replaced by e-Duti Setem through MyTax (mytax.hasil.gov.my). Stamp duty is calculated on the annual rent under the Finance Act 2024 scale. An unstamped renewal cannot be tendered as evidence in court proceedings until the duty and any applicable penalty are paid. Penalty for late stamping: RM50 or 10% of the duty (whichever is higher) within three months of the agreement date; RM100 or 20% after that.
Ready to see what a managed platform looks like in practice?
If the one-off-then-disappear agent model feels too thin for the years-long reality of a tenancy, list your property with the platform to see the plan structure, the landlord portal, and the screening process before committing.
SPEEDHOME Property Operations team. Published 2026; reviewed against current MIEA convention and LPEPH register guidance.
Frequently asked questions
How much does a property agent charge for renting out a property in Malaysia?
1 to 1.75 months of gross rent under the MIEA convention, scaled by tenancy duration. Most residential tenancies land at the 1.25-month band for tenancies up to 3 years. SST 8% applies on top. The exact rate is negotiable in writing between landlord and registered agent — it is convention, not statute.
Is the MIEA commission a fixed legal rate?
No. The MIEA scale is a market convention, not a statute. The Valuers, Appraisers, Estate Agents and Property Managers Act 1981 governs registration of estate agents, not the fee amount. A registered agent can quote below the band, and the actual rate must be agreed in writing.
Who pays the property agent's fee — landlord or tenant?
The landlord pays in a standard Malaysian residential tenancy. The landlord engages the agent for tenant placement and pays the commission at or around signing. Tenants do not owe the agent anything. If a tenant is asked for an "agency fee" by an agent, ask for the basis in writing.
Does SST apply to the agent's commission?
Yes — SST applies on the commission amount; 8% is the commonly-invoiced rate. A registered agent charging 1 month's rent will typically invoice 8% SST on that sum; the landlord pays both and the agent remits the SST to Customs. Rate note: the standard rate rose from 6% to 8% on 1 March 2024 (not January); the rental/leasing service-tax rate is 8% from 1 July 2025 (live MySST FAQ) and applies to rental/leasing services, not agency fees. The applicable rate depends on the RMCD classification of the agent's service — verify at mysst.customs.gov.my before paying.
Can the commission be claimed against rental income tax?
Only for renewals or subsequent tenants. Under LHDN Public Ruling 12/2018, the first tenant's agent commission is an initial expense and is not deductible. Commission paid for a renewal or for placing a subsequent tenant is a direct deductible expense.
Does SPEEDHOME charge an agent commission like a property agent?
No. SPEEDHOME operates as a managed platform, not a placement agent. Landlords are not charged the MIEA-scale one-off placement commission; SPEEDHOME signs a master tenancy arrangement and charges an annual subscription plus a monthly processing fee under its published plans. Verify current plan wording on the SPEEDHOME landlord page before relying on a specific figure.
What is Zero Deposit, and does it affect the agent commission?
Zero Deposit is unrelated to the agent commission (which a landlord would pay to an external agent). Zero Deposit is SPEEDHOME's managed rental-risk system that replaces the upfront cash deposit for tenants on qualifying units — it is not a financial guarantee product, and not every unit qualifies. Where it applies, the lower barrier to entry can reduce vacancy for the landlord.
When do landlord-side disputes most often surface after an agent hands over a tenancy?
SPEEDHOME managed-tenancy data puts the dispute-cluster window at the first 90 days after agent handover, dominated by late-rent follow-up and deposit-deduction disagreements. A placement-only commission covers the signing; the operational risk lives in this 90-day window, which is why ongoing counterparty structure (not placement fee) tends to decide how the disputes resolve.
Do I need an agent to renew a tenancy in Malaysia?
No — there is no legal requirement to use an agent for a tenancy renewal. If the terms are broadly unchanged, a signed addendum referencing the original agreement and stamped through e-Duti Setem within 30 days is sufficient. The only mandatory step is stamping. An agent may add value when rent needs renegotiating or the terms require material amendment; if engaged for a renewal, market convention is around half a month's rent plus SST, not the full new-letting rate.
How do I verify that a property agent is properly registered before paying?
Search the LPEPH public register at lpeph.gov.my using the negotiator's name and REN tag. Confirm the tag is active, the name matches the person quoting, and the firm linked to the tag is the firm on the engagement letter. Verify the firm's entity name against the SSM company record (ssm.com.my). Pay commission only to the registered firm's bank account — never to the individual negotiator's personal account. An agent who resists any of those checks is signalling an unresolved verification issue.
Accuracy note. Grounded in Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and Finance Act 2024. Every figure is bound to a dated fact registry and re-verified on each update. Spotted an error? Email [email protected] with this page's link.
Related guides
- Can a Landlord Post a Tenant's IC Online? (Malaysia, 2026)
- My TA Is Not Stamped — Do I Still Have Legal Protection? (2026)
- Tenancy Agreement Stamp Duty Malaysia (2026 Calculator + Clauses)
Agent fee weighed, the letting market is the other input — See live listings on SPEEDHOME.