Last updated: June 2026 (e-Duti Setem Jan 2026 + Finance Act 2024 + double-rent holdover under Civil Law Act 1956 s.28(4)(a) re-verified). Reviewed by: Wong Whei Meng, Co-Founder & CEO of SPEEDHOME.
Should you renew, renegotiate, or replace your tenant?
At lease end a landlord has three options: renew on the same terms, renegotiate before signing a new term, or replace the tenant. Renewal avoids vacancy costs; replacement resets rent and clears a problem tenancy. The right call turns on payment track record, market rents, and replacement cost.
Malaysia has no dedicated tenancy statute in force — as of 2026 the proposed Residential Tenancy Act remains an untabled draft Bill — so your tenancy agreement, together with the Contracts Act 1950, Civil Law Act 1956, and Specific Relief Act 1950, governs every renewal. There is no automatic right to renewal: if neither party acts, a periodic tenancy may continue month-to-month, but a landlord can give notice to end it.
Renew vs renegotiate vs replace: side-by-side
Renewal is the fastest and cheapest path — days, no vacancy, no agent fee. Replacement takes 3–8 weeks and costs one month's rent or more in gap and fees. Renegotiation sits in the middle: no vacancy risk, but requires a new or amended agreement and a fresh stamping.
A SPEEDHOME/INVOKE 2024 survey (Jan–Mar 2024, n=250 Malaysian property owners) found roughly 79% of landlords said proper tenant screening mattered to them — and that same screening discipline is what catches renewals before they lapse into risky month-to-month arrangements.
| Factor | Renew (same terms) | Renegotiate (new TA) | Replace (new tenant) |
|---|---|---|---|
| Speed | Days — addendum + stamp | 1–2 weeks (drafting + stamp) | 3–8 weeks (listing, screening, onboarding) |
| Stamp duty cost | Same scale as original | Same scale (Finance Act 2024) | Same scale — full new TA |
| Vacancy risk | None | None (overlap clause possible) | 1–4 weeks typical gap |
| Agent fee | Nil or nominal | Nil (DIY) or half-month | Half- to one-month rent |
| Rent reset | No — locked in | Yes — market rate | Yes — market rate |
| Screening risk | Known tenant | Known tenant | Unknown — full screen required |
| Best for | Reliable payer, stable rent | Good tenant, market moved | Problem tenancy or lease-end sale |
Use the tenancy agreement stamp duty calculator to estimate duty for any path before committing.
When each path wins
Renew when the tenant pays reliably and rent is within 10% of market — vacancy costs routinely exceed one cycle's rent gap. Renegotiate when terms need updating. Replace only when the tenancy has real problems or you plan to sell.
Renew on the same terms when the tenant pays on time, has maintained the unit, and the current rent is within 5–10% of market. Vacancy costs — one to four weeks' lost rent plus re-listing, re-screening, and onboarding — routinely exceed the difference between current rent and market rate for one cycle. A renewal addendum, signed and stamped, locks the outcome in days.
Renegotiate when market rents have shifted materially (usually more than 10%) or when you want to update clauses — add a sublet prohibition, a pet clause, or a renewal-notice period. A renegotiated renewal requires a fresh tenancy agreement or a detailed addendum that overrides the old clauses clearly. Ambiguity in an addendum that contradicts the original agreement is the most common source of later disputes; if you change more than rent and term, write a new TA. See how to renew the tenancy agreement yourself and do the stamping for the DIY stamping process.
Replace when the tenancy has recurring payment issues, the unit was damaged beyond fair wear and tear, or the tenant has breached key terms. Replacement is also the right path if you plan to sell or move in. Be aware: ending a tenancy that is still current requires proper notice (per your agreement) — trying to recover possession through self-help (locking the tenant out, disconnecting water or electricity) is unlawful under Specific Relief Act 1950 s.7(2). The lawful path is written notice, and if the tenant does not vacate, court action.
Cost and risk table
Stamp duty is identical across all paths — the Finance Act 2024 scale applies whether you renew, renegotiate, or start fresh. The real cost difference is vacancy (1–4 weeks' lost rent) and the legal risk of an unstamped or lapsed agreement.
| Path | Typical stamp duty (2-year term, RM2,000/month) | Vacancy cost risk | Legal risk |
|---|---|---|---|
| Renew — addendum | RM288 first copy + RM10 extra | Nil | Low if terms unchanged |
| New TA (renegotiate/replace) | RM288 first copy + RM10 extra | 1–4 weeks if replacing | Low with proper drafting |
| No action (month-to-month) | None (no new agreement) | High — either party can end anytime | Medium — no fixed-term protection |
| Late / unstamped | Penalty: RM50 or 10% (within 3 months); RM100 or 20% (beyond 3 months) | N/A | Medium — inadmissible in court until rectified |
Stamp duty under the Finance Act 2024 follows a four-band scale: RM1 per RM250 of annual rent for terms up to 1 year; RM3 for over 1 year to 3 years; RM5 for over 3 to 5 years; RM7 for over 5 years. The former RM2,400 annual-rent exemption was removed in January 2025 — every renewal is dutiable from the first ringgit of annual rent. Since January 2026 stamping is done through e-Duti Setem on MyTax (mytax.hasil.gov.my).
Holdover: can a landlord charge double rent after the tenancy ends?
Yes — at the landlord's option. Under section 28(4)(a) of the Civil Law Act 1956, a landlord may charge a tenant who holds over after the tenancy ends double the rent for the overstay period, whether or not the tenancy agreement contains a holdover clause. The landlord must clearly elect to claim it; it is not applied automatically.
The right runs from the day after the tenancy ends until vacant possession is given up. It is not self-executing: the landlord must write to the tenant, set out the election, and apply the doubled rate from a stated date. Skipping that letter is the single most common reason a holdover claim collapses later.
A verified rental default can be reported to a licensed credit reporting agency only where the tenant has given consent in the tenancy agreement; reporting without consent or publishing a tenant's details is not lawful under the Credit Reporting Agencies Act 2010. See the guide to handling a problem tenant lawfully for the full process.
The SPEEDHOME path: managed renewal without the paperwork
SPEEDHOME operator data (2024–2026 managed cases): when renewals are handled on-platform with proper screening and a stamped TA, the workflow catches lease-end 30–60 days early — most lapsed renewals never reach the holdover stage. Protect plans run stamping in ≤7 working days.
For landlords with reliable tenants: the platform flags approaching lease-end dates, coordinates the renewal conversation, and processes the new agreement end-to-end. No chasing stamping deadlines or drafting addendum clauses alone. The end-to-end layer — coordination, agreement drafting, and stamping within seven working days — is the product layer that removes the admin friction that makes most landlords let renewals slip into risky month-to-month arrangements.
For landlords with a problematic tenancy that needs replacing: SPEEDHOME runs consented tenant screening — credit check via Experian, income verification — before the next tenant signs. A SPEEDHOME/INVOKE 2024 survey (Jan–Mar 2024, n=250 Malaysian property owners) found roughly 79% of landlords said proper background checks on a rental platform were important to them; the platform's screening is built into the sign-up flow, not an add-on step.
Zero Deposit is SPEEDHOME's managed rental-risk system — not a financial guarantee product — that replaces the upfront cash deposit. For severe end-of-tenancy damage beyond fair wear and tear, the standard protection claims process applies. Not every unit qualifies.
Learn more at the SPEEDHOME managed landlord service.
Frequently asked questions
Six common landlord questions on lease renewals in Malaysia — stamp duty, addendum vs new agreement, holdover rights, and what to do when a tenancy runs into problems.
Does a lease renewal need a new tenancy agreement or just an addendum?
A short renewal addendum is enough if rent, term, and parties are unchanged — it references the original agreement, states the new term and start date, and both parties sign and stamp it. If anything material changes (rent, parties, key clauses), write a fresh tenancy agreement to avoid contradictions with the original.
What is the stamp duty on a lease renewal in Malaysia?
Stamp duty follows the Finance Act 2024 scale: RM1/RM3/RM5/RM7 per RM250 of annual rent, set by the new term's length. A 2-year renewal at RM2,000/month costs RM288 on the first stamped copy plus RM10 for each extra copy. Stamping is done through e-Duti Setem on MyTax since January 2026. The old RM2,400 annual-rent exemption was removed in January 2025.
Can a landlord charge double rent if the tenant overstays?
Yes — at the landlord's option. Under section 28(4)(a) of the Civil Law Act 1956, a landlord may claim double the rent for the period the tenant holds over after the tenancy ends, regardless of whether the agreement contains a holdover clause. The landlord must elect to claim it; it is not applied automatically.
What happens if neither party signs a renewal and the tenancy just continues?
It typically converts to a periodic (usually monthly) tenancy on the same terms. Either party can then end it with a notice period matching the rental interval — typically one month. A periodic tenancy gives neither party fixed-term security, leaves rent revision open, and makes court evidence of the original terms harder if an unstamped addendum was the last document. Formalising the renewal with a stamped document is strongly advisable.
Is there a Residential Tenancy Act in Malaysia that governs renewals?
No. As of 2026, Malaysia has no Residential Tenancy Act in force. The proposed RTA is still an untabled draft Bill. Residential tenancies are governed by the tenancy agreement together with general law — the Contracts Act 1950, Civil Law Act 1956, and Specific Relief Act 1950 — and disputes go through the ordinary civil courts.
How do I handle a tenant who damaged the unit and I do not want to renew?
Do not renew, serve proper notice per the agreement, and document the damage at handover against the condition report from move-in. A verified rental default or damage may be reported to a licensed credit reporting agency only where the tenant gave consent in the tenancy agreement — publishing or sharing the tenant's details without that consent is not lawful. See the guide to handling a problem tenant lawfully for the step-by-step process.