Finding a tenant is only the first step. Before handing over keys, landlords must confirm tenant details, sign the tenancy agreement, complete e-Duti Setem stamping on MyTax, and record move-in condition. Malaysia has no statutory residential deposit cap, so ensure deposit terms are clearly stated in the agreement to protect against proven loss.
What should you do after finding a suitable tenant?
Do not hand over the keys yet. Confirm the tenant details, sign the tenancy agreement, stamp it, record move-in condition, settle payment timing, and keep every promise in writing before the tenant moves in.
Finding a tenant feels like the finish line, but it is actually the risk point. The tenant is interested, the landlord wants to close, and both sides may rush. That is when unclear deposits, unstamped agreements and missing inventory photos turn into expensive arguments later. Many landlords mistakenly believe that a verbal agreement or a basic handshake is sufficient once a tenant passes the initial screening. However, without formalising the arrangement, you leave yourself exposed to significant liabilities.
You must establish a firm sequence of events. First, verify the tenant's identity and their supporting documents. Next, align on the commercial terms, ensuring that the rent amount, payment date, and tenancy duration are crystal clear. Only after these details are agreed upon should you proceed to draft and sign the tenancy agreement. Once signed, the agreement must be stamped via e-Duti Setem, and the agreed move-in payments must be collected in full before the tenant is allowed to take possession of the property.
Use this as the post-approval checklist before move-in to ensure a seamless and legally secure transition.
What sequence governs handover and key release?
The safe order is: verify details, agree commercial terms, sign the tenancy agreement, stamp it, collect agreed move-in payment, inspect the unit together, then release keys.
| Step | What to complete | Why it matters |
|---|---|---|
| 1 | Confirm tenant identity and occupancy | Avoids surprises on who is actually moving in and prevents unauthorised sub-letting |
| 2 | Confirm rent, move-in date and payment schedule | Prevents payment-date disputes and aligns financial expectations |
| 3 | Sign tenancy agreement | Puts deposit, notice and responsibilities in writing to serve as a legal reference |
| 4 | Stamp the agreement | Keeps the agreement ready for evidence use in court if disputes arise |
| 5 | Prepare inventory and photos | Protects both sides at move-out by establishing a baseline condition |
| 6 | Handover keys and access cards | Records exactly what was given to the tenant for future retrieval |
| 7 | Set repair and communication channel | Reduces random WhatsApp confusion and ensures maintenance is tracked |
Do not skip steps because the tenant ""looks okay."" Good tenants also benefit from clear records. A structured handover process protects the tenant from being falsely accused of pre-existing damages and protects the landlord from unsubstantiated claims. It is a mutual safeguard that sets a professional tone for the entire tenancy period.
What must be in the tenancy agreement?
The agreement should state the parties, unit, rent, payment date, duration, deposit terms, notice period, repair responsibility, house rules, handover items and early-termination terms.
A tenancy agreement is not just a formality. It is the document both sides return to when something goes wrong. Relying on generic templates without customising them to your specific property can lead to unenforceable clauses and significant financial exposure.
At minimum, check that it includes:
- full landlord and tenant details, including identification numbers and contact information
- property address and included parking or room details, specifying the exact scope of the rented premises
- rent amount and due date, leaving no room for interpretation on when payments are expected
- tenancy start and end date, defining the exact term of the lease
- deposit amount and deduction terms, clearly outlining what constitutes a valid deduction
- utility responsibility, stating who pays for electricity, water, and internet
- inventory attachment, detailing every piece of furniture and fixture provided
- maintenance and repair responsibility, separating major structural repairs from minor wear and tear
- notice period and early termination, establishing the penalty or process if the tenant leaves early
- key, access card and remote handover list, ensuring all security items are accounted for
Malaysia has no statutory residential rent-deposit cap. Deposits are governed by the tenancy agreement, and a landlord's right to retain is limited to proven loss under general contract law. That means vague deposit wording is not harmless. Do not merely state that a deposit has been paid; you must write down exactly how it can be used, under what conditions it will be forfeited, and the timeline for returning any remaining balance after the tenant vacates the property. The wider area context is set out in the complete landlord guide for Malaysia.
For a deeper deposit explanation, read the rental deposit guide.
When do you stamp the agreement?
Stamp the tenancy agreement after signing, using the current e-Duti Setem process on MyTax. For 2026, stamp duty follows the RM1/RM3/RM5/RM7 per RM250 annual-rent scale by lease duration.
The former RM2,400 annual-rent exemption was removed in January 2025. Since January 2026, stamping is done through e-Duti Setem on MyTax. You should not rely on outdated portals or old manual stamping methods, as the system has been fully modernised.
| Lease duration | Stamp duty band |
|---|---|
| Up to 1 year | RM1 per RM250 of annual rent |
| More than 1 year and up to 3 years | RM3 per RM250 of annual rent |
| More than 3 years and up to 5 years | RM5 per RM250 of annual rent |
| More than 5 years | RM7 per RM250 of annual rent |
Use the stamp duty calculator for a worked estimate before you collect payment from the tenant. Ensure that the calculation is accurate and reflects the full annual rent without applying any obsolete exemptions.
How does the e-Duti Setem process work for landlords?
The stamping process for 2026 is fully modernised and must be completed through the e-Duti Setem system provided by Lembaga Hasil Dalam Negeri (LHDN) on the MyTax portal.
After signing the tenancy agreement with your chosen tenant, the next mandatory step is to stamp the document. Landlords must remember that the previous exemption for the first RM2,400 of annual rent was officially abolished in January 2025. Therefore, it is critical that you no longer use old formulas, old rates, or refer to outdated calculation portals on the internet.
Ensure every tenancy agreement document is legally registered on the official platform. Remember that only an agreement document that has been properly stamped with valid duty payment carries strong evidentiary value and is admissible in court should any claims or legal disputes arise in the future. The e-Duti Setem system streamlines this process, allowing landlords to submit the document details, generate the assessment, and make the payment online without needing to visit a physical LHDN branch.
How is stamp duty calculated under the Finance Act 2024?
Stamp duty for tenancy agreements follows a specific scale mandated by the Finance Act 2024, strictly based on the duration of the lease.
So, what is the actual cost that you or the tenant must pay? Tenancy stamp duty now follows a new structure and scale officially established under the Finance Act 2024. The new payment rates are set at RM1, RM3, RM5, or RM7 for every RM250 of the total annual rent, heavily dependent on the agreed rental period in the contract.
For example, for a tenancy agreement with a valid duration of up to a maximum of 1 year, the rate is RM1 for every RM250 of that annual rent. Meanwhile, for a rental period that extends more than 1 year up to 3 years, the rate increases to RM3 for every RM250 of annual rent. To ensure calculations are much easier, faster, and most importantly accurate to avoid any errors during payment on the MyTax portal, landlords are strongly advised to use the latest stamp duty calculator before completing the transaction.
What should happen during move-in inspection?
Walk through the unit with the tenant and record the condition before keys are released. Photos, meter readings, keys, access cards and inventory should be captured on the same day.
Move-in inspection is not a ceremony. It is evidence. Do not just take photos of the beautiful angles of the unit. You must capture the corners, floors, ceilings, door locks, windows, appliances, and furniture. Consolidate these photos into a single communication thread or a shared folder so they are not lost when the tenancy ends years later.
Record these items:
- electricity and water meter readings, capturing the exact usage point for the new tenant
- wall, floor and ceiling condition, highlighting any pre-existing scratches or stains
- appliance condition, testing them briefly to ensure they are functional
- furniture and fixtures, checking for stability and wear
- keys, access cards, remotes and parking tags, noting the exact quantity handed over
- existing defects, acknowledging them in writing so the tenant is not blamed later
- cleaning condition, confirming the unit was handed over in an acceptable state
Use the move-in and move-out checklist so both parties compare the same record later. This creates a solid baseline that eliminates subjective arguments about what the property looked like on day one.
What should you not do after approving a tenant?
Do not release keys before documents and payment are complete. Do not rely on verbal deposit promises. Do not accept unclear occupancy. Do not delay handover photos until after the tenant has moved in.
Most landlord losses are not caused by one dramatic mistake. They come from small gaps: no stamped agreement, no inventory, no agreed repair channel, no written payment date, or no proof of what the unit looked like at move-in. Once a tenant moves their belongings into the property, your leverage to demand a signed agreement or exact deposit payment drops significantly.
| Risky shortcut | Better action |
|---|---|
| ""Pay me later, just move in first"" | Complete agreed move-in payment before key release to establish financial discipline |
| Verbal repair promise | Put repair responsibility in the agreement to avoid ongoing disputes over minor fixes |
| Old listing photos only | Take fresh handover photos to prove the exact condition on the move-in day |
| Unclear number of occupants | State occupants in the agreement to prevent overcrowding and subletting |
| Agreement signed but not stamped | Complete stamping promptly via e-Duti Setem to ensure court admissibility |
How does tenancy execution run on SPEEDHOME after approval?
The platform gives landlords a structured route from tenant approval to tenancy documentation, payment flow and handover. The value is not just finding a tenant; it is closing the tenancy cleanly.
If you already found someone outside a structured process, slow down and rebuild the missing paperwork before move-in. If you want the process handled with clearer steps, start at /more/landlord/speedhome. The platform ensures that identity verification, digital tenancy agreement signing, and payment collection are handled systematically.
The goal is simple: no key handover until the tenancy is documented, stamped where required, paid according to the agreed move-in terms, and photographed. By following a rigid sequence, you protect your asset and create a transparent, professional relationship with your new tenant from the very first day.
FAQ
Can I hand over keys before stamping?
You should avoid rushing the key handover before the tenancy paperwork is complete. Stamping is part of making the agreement ready as evidence, and the current process runs through e-Duti Setem on MyTax. Handing over keys without a stamped document means you are operating without a fully enforceable contract if an immediate dispute occurs.
Who normally pays stamp duty?
It is usually handled according to the tenancy agreement or commercial arrangement between the parties. Do not assume; write it down before signing. For another option in the same area, see the key clauses in Malaysian tenancy agreements. Historically, tenants bear the cost, but it remains a negotiated term.
How much deposit can I collect?
Malaysia has no statutory residential deposit cap. The amount and deduction rules should be stated in the tenancy agreement, and any retention must be tied to proven loss. Typical market practice is a security deposit equal to two months of rent and a half-month utility deposit, but this is entirely dictated by your contract.
What if the tenant wants to move in urgently?
Urgency is not a reason to skip documentation. If you compress the timeline, compress the admin work too: sign, stamp, collect agreed payment, inspect, photograph and release keys. Rushing without paperwork is the most common way landlords invite financial loss.
Should I give the tenant all access cards?
Only hand over what is listed in the inventory and handover record. Record keys, access cards, remotes and parking tags clearly. If you retain a spare set of keys for emergency access, ensure this is known and permitted under the tenancy agreement's access clauses.
What is the most common post-approval mistake?
The most common mistake is treating tenant approval as completion. Approval only means you can start the signing, payment and handover process. The tenancy is only truly secured when the agreement is stamped, payments are cleared, and the handover is fully documented.
Can a tenancy agreement use the old RM2,400 stamp duty exemption?
No, you cannot use the old exemption. The RM2,400 annual rent exemption was officially removed in January 2025. All stamp duty calculations must now apply the Finance Act 2024 scale to the full annual rent amount.
Is there a statutory limit on residential tenancy deposits?
No, Malaysia currently has no statutory limit on residential tenancy deposits. Because there is no statutory cap, the terms governing the amount, retention, and return of the deposit must be exhaustively detailed in your tenancy agreement to prevent disputes.
Accuracy note. This page is built on verified primary sources and a dated fact registry; figures are re-verified on each update. Spotted an error? Email [email protected] with this page's link.