Agent is asking both of us to pay — who is actually responsible?
In the standard Malaysian rental arrangement, the landlord pays the letting agent's commission because the agent is engaged to fill the landlord's vacancy. When the same agent asks the tenant to pay a separate fee as well, that is double-charging — not the norm — and you should ask which service the tenant's fee is supposedly buying before agreeing to it.
There is no statute that fixes who pays a rental agent in Malaysia (residential tenancies are governed by the tenancy agreement and general contract principles, not a Residential Tenancy Act). The convention is simply that the party who hired the agent pays the agent. If the landlord instructed the agent to find a tenant, the landlord pays. The risk of double-charging appears when an agent tells each side, separately, that they each owe a fee — and neither side compares notes.
How the fee normally works — and when double-charging appears
The market convention is that the landlord pays the agent for finding and securing a tenant; a tenant who paid a separate agent to source a unit for them is the rare exception, not the rule. The two fees are for two different services and should never both fall on the same transaction by default.
The line that matters is who the agent is working for. An agent cannot properly serve two masters in one deal and bill both for the same outcome. Here is how the two legitimate fee structures differ from a double-charge:
| Situation | Who the agent works for | Who pays the agent | Is a tenant fee normal here? |
|---|---|---|---|
| Landlord listed the unit with an agent to find a tenant | Landlord | Landlord | No — the tenant should not be charged |
| Tenant hired their own agent to search and shortlist units for them | Tenant | Tenant | Yes — but this is a separate, tenant-instructed service |
| Same agent is "representing both sides" and billing both | Both — conflict | Both | Red flag — get this in writing before paying |
| Agent asks the tenant for an "admin", "processing" or "registration" fee on top of the landlord's commission | Unclear / invented | Tenant | Red flag — often a spurious charge |
| Agent asks for a fee before any viewing or agreement | Neither party has engaged them yet | Whoever is pressured | Red flag — see viewing-fee guidance |
The tell-tale sign of a problem is opacity. A legitimate fee comes with a receipt, a name on it, and a clear service it buys. A spurious fee is requested in cash, has no invoice, and shifts each time you ask what it is for.
For the full breakdown of how rental agency fees are structured on each side, read the agent fee for rental guide, and the broader property agent commission landlord decision guide.
What the tenancy agreement — not the agent — actually costs the tenant
The tenant's genuine, unavoidable cost at signing is stamp duty on the tenancy agreement, not an agent commission. Confusing a real statutory cost with an agent-invented fee is how tenants end up paying for something nobody actually owes.
Stamp duty is a government charge on the legal agreement itself, and it is owed regardless of whether an agent was involved. An agent sometimes collects it on the landlord's behalf, which is fine — but that collection is not the agent's fee, and a tenant should never be told the stamp duty is the agent fee.
| Cost at signing | Who normally pays | What it is | Watch out for |
|---|---|---|---|
| Stamp duty on the tenancy agreement | Tenant (convention) | Government stamp duty on the legal document — the real, unavoidable cost | Make sure the figure matches the e-Duti Setem receipt, not a round number the agent quotes |
| Agent / letting commission | Landlord (standard) | The fee for finding the tenant and securing the deal | If the agent pushes this onto the tenant on top of the landlord's payment, question it |
| Security deposit and utility deposits | Tenant | Held against arrears and damage, refundable — not a fee | Not commission; do not let anyone label a deposit as an "agent fee" |
| "Admin", "registration", "file-opening" charges | Either — only if a real service exists | Vague labels with no invoice | Usually a spurious add-on; ask for a written breakdown |
The deposit side is governed by your tenancy agreement and general contract law — Malaysia has no statutory residential rent-deposit cap — so the amount and the conditions for return must be in writing. An agent cannot unilaterally add a non-refundable fee and call it part of the deposit structure.
The pushback script when an agent charges both sides
You do not lose the unit by asking a direct question. Ask, in writing, which service your fee is paying for, who instructed the agent, and whether the other side is also being charged — then pay only against a proper invoice for a real service.
- Ask who engaged the agent. "Did the landlord instruct you to find a tenant, or was I the one who asked you to source a unit?" If the landlord did, the commission is the landlord's bill.
- Ask for the invoice before paying. A fee with no invoice, a name, or a service description is not something to hand cash over for.
- Pay only by traceable means. A bank transfer to a named agency or the landlord's company account — never cash to an individual on the spot. Cash with no trail is the most common setup for a fee that is later denied.
- Get the agreement stamped properly. Stamp duty is paid through LHDN's e-Duti Setem on MyTax — confirm the figure against the official receipt, not the agent's word.
- Walk away from demands for money before a viewing. A fee charged before you have even seen the unit, or as a condition of viewing, is a recognised rental-scam pattern. See when a viewing fee is and is not normal in Malaysia.
The SPEEDHOME-only angle: the fee exists because the agent sits in the middle
The double-charge problem disappears the moment the landlord and tenant connect without an intermediary pocketing from both sides. SPEEDHOME's direct-to-landlord platform lets landlords list and tenants rent without a letting agent inserting a commission into the deal — so the question of "who pays the agent" does not arise.
On SPEEDHOME, the landlord posts the listing directly and the tenant deals with the landlord or SPEEDHOME's managed tenancy framework — there is no third-party agent collecting a letting commission from either side. The tenancy agreement, the stamp duty, and the deposit structure are the real costs, handled transparently, with no agent fee layered on top. For landlords, the cost of getting a first tenant is an initial expense you cannot deduct against rental income anyway (LHDN treats first-letting advertising, legal and agent costs as initial, non-deductible expenses) — so paying a commission to fill a vacancy is money out with no tax relief on that first letting.
Zero Deposit is a managed rental-risk system, not a financial guarantee product. It replaces the upfront cash deposit; in the rare case of severe end-of-tenancy damage the recoverable amount can be limited, so the protection it offers is not absolute. It sits alongside — not in place of — a transparent fee and deposit structure with no agent skimming both sides.
Browse rental homes on SPEEDHOME to see units listed directly by landlords, with no letting agent commission on either side.
FAQ
Who normally pays the rental agent fee in Malaysia — landlord or tenant?
The landlord, in the standard arrangement. The agent is engaged to fill the landlord's vacancy, so the commission is the landlord's cost. A tenant only pays an agent fee if the tenant separately hired that agent to source a unit for them — a different, tenant-instructed service, not the same deal billed twice. There is no statute fixing this; it is the market convention.
Is it legal for an agent to charge both the landlord and the tenant?
There is no law that sets who pays a rental agent — residential tenancies are governed by the agreement and general contract principles, not a Residential Tenancy Act. But charging both sides for the same letting service is double-charging, not the norm. Ask, in writing, which service each fee buys and whether the other side is also being billed before you pay.
The agent wants cash and will not give an invoice — should I pay?
No. A legitimate fee comes with an invoice, a named payee, and a traceable payment method. Cash to an individual with no receipt is the most common setup for a fee that is later denied or invented. Pay by bank transfer to a named agency or the landlord's company account, and keep the record.
What is the tenant's real, unavoidable cost at signing?
Stamp duty on the tenancy agreement — a government charge on the legal document, paid through LHDN's e-Duti Setem on MyTax. That is a statutory cost and is owed whether or not an agent was involved. An agent commission is separate; do not let anyone label stamp duty as the agent's fee.
Can the agent add an "admin" or "registration" fee on top?
Only if there is a real, itemised service behind it and a proper invoice. Vague "admin", "processing", "file-opening" or "registration" charges with no breakdown are usually spurious add-ons. Ask what the service is, who is being charged on the other side, and pay only against documentation. A fee demanded before any viewing is a recognised scam pattern.
How do I avoid the double-charge problem entirely?
Rent directly from a landlord who has listed the unit themselves, without a letting agent in the middle. On SPEEDHOME's direct-to-landlord platform, landlords post their own listings and tenants deal with the landlord or SPEEDHOME's managed tenancy framework — so there is no agent commission on either side, and the only real costs are the stamp duty, the deposit, and the rent.