How much is property agent commission for rentals in Malaysia?
For a residential rental, the Malaysian Institute of Estate Agents (MIEA) convention sets the maximum at 1.25 months' gross rent for tenancies up to 3 years, rising to 1.75 months for over 4 years. One month is the conventional minimum. SST of 8% applies on top of the commission. This is industry convention, not statute — fees are negotiable.
The figure that circulates online — "one month's rent" — is the floor, not the standard rate. What you actually pay depends on the tenancy duration and what scope the agent and landlord agree to in writing. Neither the agent's commission nor the SST rate is set by legislation; MIEA publishes the scale as a professional convention, and regulators hold property agents to BOVAEP/LPPEH registration (under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981), not to a statutory fee schedule.
The MIEA rental commission scale
The MIEA scale is the reference table that agents and landlords use to set fees. It rises with tenancy duration. Confirm the current rate, SST treatment and scope in writing before signing anything.
| Tenancy duration | Maximum commission (MIEA convention) | SST (8%) on RM2,000/mo rent example |
|---|---|---|
| Up to 3 years | 1.25 months' gross rent | RM200 on a RM2,500 commission |
| Over 3 to 4 years | 1.50 months' gross rent | Proportionally higher |
| Over 4 to 5 years | 1.75 months' gross rent | Proportionally higher |
| Over 5 years (no renewal option) | 1.75 months' gross rent | Proportionally higher |
| Over 5 years (with renewal option) | 1.75 months' + 0.25 months per additional year | Proportionally higher |
Source: MIEA. Maximum rates; minimum is 1 month's gross rent. SST 8% is charged by the agent on the commission amount — not on the rent. Rates are convention, not statute. Residential only; serviced apartments and commercial units may differ.
A few things the table does not settle: who pays — landlord, tenant, or both. That is written into the appointment letter or verbal agreement. In most Malaysian residential rentals the landlord pays the agent, but there is no fixed rule. Confirm it before listing the property.
What the commission pays for — and what it usually does not
Agent commission in a rental context covers finding a tenant and getting the tenancy signed. It rarely covers what happens after move-in — rent collection, repair follow-up, late-payment chasing, or move-out documentation — unless you write those duties into a separate property management agreement.
This is the scope question most landlords ask too late. An agent's job is placement: list the unit, handle enquiries, arrange viewings, negotiate the basics, and bring the tenancy agreement to signing. Once the tenant moves in, most agents' engagement ends unless an ongoing management scope is agreed separately.
A survey of 250 Malaysian landlords conducted by INVOKE for SPEEDHOME (January–March 2024) found that 74% did not want to chase rent themselves, and 79% considered proper tenant screening the most important factor — yet many only discover the agent's scope ends at signing after the fact. That gap is why asking "what is your commission?" is less useful than asking "what exactly happens after the tenant moves in?"
If you want rent collection, repair coordination and move-out evidence handled as part of the arrangement, those duties belong in a separate written scope, and the fee will be different from a one-time placement commission.
For a full three-way comparison of agent, self-manage, and platform workflows, see the property agent commission full guide. If you want to list a rental unit directly, browse available listings.
FAQ
Who pays the property agent commission in Malaysia — landlord or tenant?
There is no legal rule on this. In most Malaysian residential rentals the landlord pays. Some agents split it between landlord and tenant, or charge both. Confirm in writing in the appointment letter before the agent starts work.
Is property agent commission fixed by law in Malaysia?
No. MIEA publishes a convention scale (1.25 to 1.75 months' gross rent by duration), but it is not statute. The rate is negotiable between agent and client. BOVAEP/LPPEH registration is a regulatory requirement for property managers; the fee scale is not.
Does SST apply to property agent commission in Malaysia?
Yes. SST at 8% applies on the commission amount charged by the agent — not on the monthly rent. Confirm whether the quoted fee is inclusive or exclusive of SST before agreeing.
Is one month's rent the standard agent commission in Malaysia?
One month's gross rent is the conventional minimum, not the standard. The MIEA scale goes up to 1.25 months for tenancies up to 3 years, and higher for longer terms. "One month's rent" is often quoted as a shorthand; the full table applies in practice.
When is a platform like SPEEDHOME a different option from using an agent?
When your concern is not just finding a tenant but also keeping the rental process — screening, rent records, and post-signing follow-up — in a structured workflow. Check current terms and scope before treating it as a direct replacement for an agent. For a side-by-side breakdown, see the agent vs SPEEDHOME comparison or read about renting out without an agent.