Landlord Guide Malaysia: How to Rent Out Your Property (2026)
Renting out property in Malaysia generates passive income — but skipping tenant screening, not stamping the tenancy agreement, or leaving TNB in your own name puts you one bad tenant away from RM20,000 in losses and 6 months in court. This guide covers the full process from listing to deposit return.
Before You List: What You Need in Place
| Requirement | Why it matters | How to do it |
|---|---|---|
| Property condition documented | Baseline for deposit deductions | Full video walkthrough before tenant moves in |
| Legal tenancy agreement | Defines terms, protects both parties | Solicitor-drafted template or SPEEDSIGN |
| Fire insurance | Structural damage not covered by tenant | Standard fire policy from any Malaysian insurer |
| LHDN tax registration | Rental income is taxable | Declare via e-Filing; claim deductions |
Tenant Screening: The Step Most Landlords Skip
The 2-month deposit is not a risk management tool — it’s partial cost recovery. If a tenant defaults 4 months and causes RM8,000 damage, the deposit covers less than half. Real protection is knowing who you’re renting to before handing over keys.
- Credit check — ask the tenant to self-pull a CTOS report (RM27.90) if you are screening manually. A court judgment shown there can signal repayment risk. For applications through SPEEDHOME, tenant screening is handled through Experian Malaysia (formerly RAMCI).
- Income verification — 3 months payslips or bank statements. Rent should not exceed 30% of gross income.
- Employment confirmation — verify employer exists and the letter is genuine. Rental fraud cases increasingly use fabricated employment documents.
- MDI bankruptcy check — free IC lookup at myinsolvensi.mdi.gov.my. A bankrupt tenant cannot be sued effectively.
Related: How to Screen Tenants in Malaysia Legally | Can You Blacklist a Tenant in Malaysia?
The Tenancy Agreement: Get This Right
An unstamped tenancy agreement is inadmissible in court — the most expensive administrative mistake Malaysian landlords make. Stamp within 30 days via e-Duti Setem at mytax.hasil.gov.my.
| Duration | Rate (per RM250 annual rent) |
|---|---|
| 1 year or less | RM1 |
| 1–3 years | RM3 |
| 3–5 years | RM5 |
| More than 5 years | RM7 |
The RM2,400 rent exemption was removed from January 2025 — all agreements must now be stamped regardless of rent amount.
Related: Complete Guide to Tenancy Agreements | Stamp Duty Calculator Use the 2026 stamp duty calculator for an exact figure.
TNB: Transfer Before Handing Over Keys
If TNB stays in your name, you’re liable for every ringgit of unpaid electricity — including bills reaching RM5,000–20,000/month from cryptocurrency mining. Execute a Change of Tenancy via MyTNB before move-in. Takes 1–3 working days, free.
Related: TNB Change of Tenancy: Step-by-Step Guide
Non-Payment: The Legal Process
Do not change locks. Do not cut utilities. Do not remove belongings. All illegal under Section 7(2) SRA 1950. The tenant can counter-sue — and win.
Legal process: written demand (14 days cure) → Writ of Distress (rent recovery, RM3K–9K) and/or Writ of Possession (eviction, RM10K–25K, 4–12 months). File both simultaneously.
Related: Eviction Laws in Malaysia | Writ of Distress vs Writ of Possession
Rental Income Tax
Rental income is taxable under Section 4(d) ITA 1967. Deductible (Section 33): mortgage interest, assessment tax, quit rent, fire insurance, repairs and maintenance (not improvements), management fees, agent commission. Not deductible: renovation, furniture, loan principal repayment.
Related: Tax Deductions for Malaysian Landlords | Are Repairs Tax-Deductible?
Should You Offer Zero Deposit?
Zero deposit reduces friction — larger applicant pool, faster fill, lower vacancy. The 2-month cash buffer is replaced by SPEEDHOME Zero Deposit eligibility, screening, payment controls, and rental protection for eligible transactions. Coverage, limits, and exclusions depend on current product terms. See: Zero Deposit for Landlords: The Real Math.
Frequently Asked Questions
What do I need to rent out my property in Malaysia?
Stamped tenancy agreement, documented property condition (video walkthrough), TNB Change of Tenancy before move-in, and LHDN tax registration. Screening minimum: credit check, income verification, employment confirmation.
How much can I deduct from the security deposit?
Only for damage beyond normal wear and tear, not pre-existing, and documented. Cannot deduct for: reasonable cleaning, normal painting, pre-existing conditions, or items not specified in the TA. Disputed deductions can be challenged at Small Claims Court.
Do I need to declare rental income to LHDN?
Yes — Section 4(d) ITA 1967. Declare via LHDN e-Filing. Allowable deductions (mortgage interest, assessment tax, quit rent, repairs, insurance) often reduce the taxable amount significantly. Failure to declare is a tax offence.
What happens if my tenant stops paying rent?
Issue formal written demand (14-day cure period). File Writ of Distress (rent recovery, RM3K–9K) and/or Writ of Possession (eviction, RM10K–25K, 4–12 months) at Magistrate Court. Self-help eviction is illegal and exposes you to counter-suit.
Is it worth using a property agent to find tenants?
Agents charge ~1 month commission and manage viewings. Direct platforms eliminate commission but you handle viewings yourself. Screening quality varies by agent — verify their process. SPEEDHOME includes Experian-backed screening with no commission.
