What does a tenancy agreement cost in Malaysia in 2026?
A Malaysian tenancy agreement carries four charge rails: stamp duty to LHDN (a fixed statutory formula), a drafting fee for the document itself (not fixed by law), an agent placement commission where an agent is involved (a regulated scale), and the deposit-and-advance stack (market practice, not statute). Who pays for each line is a contract term — settle it in writing before signing.
| Charge rail | Who collects it | What fixes the amount | Where to check it |
|---|---|---|---|
| Stamp duty | LHDN (government) | Finance Act 2024 statutory scale on annual rent and lease duration | Stamp duty calculator |
| Additional stamped copies | LHDN | Flat RM10 per copy after the principal | Calculator page |
| TA drafting fee | Lawyer, agent or platform | No statutory rate — set by whoever prepares the document | Quote in writing up front |
| Agent placement commission | Registered estate agent | LPEPH Seventh Schedule scale by tenancy length | Section below |
| Security deposit, utility deposit, advance rent | Landlord | Market practice — no statutory cap | Section below |
This page owns the cost anatomy — what each line is, what law (or its absence) sets it, and who conventionally pays. The exact duty arithmetic lives on the stamp duty calculator page; the step-by-step submission lives on how to stamp a tenancy agreement online. Budget settled, the home itself comes next — See live listings on SPEEDHOME for current rental availability.
How much is the stamp duty line?
Stamp duty on a Malaysian tenancy runs on the Finance Act 2024 scale — RM1, RM3, RM5 or RM7 per RM250 of annual rent depending on lease length, charged on the full annual rent with a RM10 minimum, and the former RM2,400 annual-rent exemption was removed from January 2025. Each additional stamped copy is a flat RM10.
Because the exemption is gone, even modest monthly rents now generate a real stamp duty line from the first ringgit of annual rent. Stamp within 30 days of signing: late filing adds a penalty of RM50 or 10% of the deficient duty within 3 months of the deadline (whichever is higher), rising to RM100 or 20% after that. For the exact figure at your rent and term — including the worked arithmetic per duration band — use the stamp duty calculator; it separates the principal duty from the per-copy RM10 lines.
Is the agent's fee regulated — and what is the legal scale?
Yes, regulated. For residential lettings, a licensed estate agent's placement commission follows the LPEPH/BOVAEP Seventh Schedule of Fees (Rule 48), Part C "Estate Agency," item 2 "Lettings": a minimum of one month's gross rental (pro-rated for tenancies under a year), rising to a maximum of 1.25 months for tenancies up to 3 years, 1.5 months for 3-4 years, and 1.75 months for 4-5 years — plus 0.25 month for each year of any renewal option beyond 5 years.
Three practical consequences. First, the scale is a floor-and-ceiling, not a single number — the one-month figure you were quoted is the schedule's minimum, not a discount. Second, agents must be registered under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242) to charge it; the schedule expressly excludes serviced offices and serviced apartments. Third, who funds the commission is negotiable — do not accept "the tenant always pays" as law; it is not. A fee dispute is a civil claim (Magistrates' Court up to RM100,000; Sessions Court above that up to RM1,000,000 for other civil actions — and unlimited for landlord-and-tenant and distress claims (s.65(1)(a); the RM1,000,000 ceiling is s.65(1)(b)) for other civil actions — and unlimited for landlord-and-tenant and distress claims (s.65(1)(a); the RM1,000,000 ceiling is s.65(1)(b))), with LPEPH as a disciplinary avenue that does not award compensation.
What about the drafting or legal fee?
A drafting or legal fee covers preparing the tenancy agreement itself and is separate from stamp duty. It is not fixed by law — it varies with who prepares the document, so ask for the figure in writing before engaging anyone.
The fee pays for the document, not the LHDN duty — a quote that folds duty, drafting and copies into one lump sum should be split in writing before you pay. A template-based route costs nothing in drafting: the SPEEDHOME tenancy agreement template is free in English, BM or Chinese, whole unit or room, with the stamping and cost clauses already drafted.
What deposits do I pay, and is there a legal cap?
Malaysia has no statutory residential rent-deposit cap; deposits are governed by your tenancy agreement, and a landlord's right to retain is limited to proven loss. The common market stack is two months' security plus one month's advance rent and a half-month utility deposit — about three and a half months upfront.
None of these amounts is fixed by law. They are contractual custom, so they are negotiable, and a landlord can only keep what covers proven loss at move-out. Read what a landlord can legally deduct from your security deposit before you agree to a number — the deductions list is shorter than most landlords admit. When the tenant also owes rent at move-out, the question sharpens: can the landlord just keep the deposit to cover rent owed works through the offset rules.
Who pays the tenancy agreement charges — the default split?
When the agreement is silent, Malaysian market practice puts the stamp duty and drafting fee on the tenant — but that is convention, not a statutory allocation. Agree who pays each line before signing and write the split into the agreement; that is the only version a court can enforce.
| Charge line | Usual market default | Fixed by law? | How to change it |
|---|---|---|---|
| Stamp duty (principal) | Tenant | Amount yes (statutory scale); payer no | A one-line clause in the agreement |
| Additional stamped copies | Each party its own copy's RM10 | Amount yes; payer no | Same clause — state who buys how many copies |
| Drafting fee | Whoever commissioned the document | No | Quote stage, before engaging |
| Agent placement commission | Commonly the tenant in practice; negotiable | Scale yes (LPEPH schedule); payer no | Negotiate at engagement; put it in writing |
| Security, utility deposits, advance rent | Tenant, at move-in | Amount no (no statutory cap) | Negotiate before signing |
The pattern: the AMOUNTS on the statutory lines are fixed (duty scale, agent scale), but every PAYER allocation is a contract term. Silence favours whoever did not offer to pay — so do not be silent.
How do the charges change with the tenancy type?
The figures above assume a standard 12-month residential tenancy of a whole unit. Real tenancies vary — and only the duty rate changes mechanically; every other line is set by the agreement.
| Variation | How the charges move |
|---|---|
| Short-term (under 12 months) | Duty is annualised on the implied annual rent and stays in the under-1-year band; the 30-day stamping window still runs from signing |
| 18-month or 24-month tenancy | Moves into the 1-3 year band, whose per-RM250 rate is triple the 1-year band's — the duty line rises accordingly, everything else is unchanged |
| Renewal or extension letter | A new chargeable instrument on the new rent and duration — stamped separately within 30 days of signature |
| Co-living / room rental | Each tenant's individual agreement is assessed on that tenant's rent share, not the whole unit's rent; deposits usually apply per tenant |
| Serviced residence | The LPEPH letting scale does not apply to serviced premises (the schedule excludes them); duty still runs on the rent |
| Student rental (semester-based) | Typically 6-11 months, annualised into the under-1-year band with a lighter deposit stack |
| Diplomatic / employer-paid lease | No statutory rule on who pays — the duty and fee allocation is a commercial decision, so write the split down |
What if there is a dispute over charges or the deposit?
Malaysia has no dedicated residential tenancy tribunal. A contested deposit or charge is a civil matter filed at the Magistrates' Court — claims up to RM5,000 use the small-claims procedure and do not require a lawyer, larger claims go to the Magistrates' or Sessions Court, and civil contract claims must be brought within the Limitation Act 1953 window.
The Tribunal for Consumer Claims does not hear a private residential tenancy deposit dispute (a tenancy is an interest in land and a deposit claim is a chose in action, both excluded from its jurisdiction). For smaller amounts the Magistrates' small-claims track is the practical route; file at the nearest Magistrates' Court, no lawyer needed for claims up to RM5,000. Keep your stamped agreement, receipts, and move-in and move-out photos, because the paper trail is what decides a claim. A landlord cannot keep a deposit by default — only by proving the loss it covers. The renter-side view of the same cost stack — what tenants pay at each stage, the deposit structure and refund timelines — is collected in Soalan Lazim Penyewa, the tenant FAQ.
Where do the handled options sit in this stack?
Every line above can be DIY: stamping runs through MyTax at no platform cost, a template replaces the drafting fee, and the scales are published. The paid options buy back time and mistakes. If your agreement is already signed, SPEEDHOME's stamping-only service submits the LHDN stamping for you (a RM39 service fee + LHDN stamping fee test price as of September 2026 — book it on WhatsApp and the team confirms the live figure with you before anything is paid; the statutory duty itself still goes to LHDN at the usual rate). If nothing is signed yet, SPEEDSIGN covers the agreement, the digital signatures and the LHDN stamping submission in one self-serve flow at RM449 + SST per signing, with a seven-working-day stamping turnaround as the target SLA, not a guarantee — the service page shows how to book. And before either of those, the cheapest risk decision in the whole stack is screening the counterparty — start with how landlords run tenant credit checks.
This is the segment SPEEDHOME operates in at volume: per platform operating data (2026), SPEEDHOME has managed 30,000+ tenancy agreements across Malaysia, every one of them subject to this same duty scale and 30-day window.
SPEEDHOME can stamp your tenancy agreement for you — RM39 service fee + LHDN stamping fee. If your agreement is already signed, SPEEDHOME's stamping-only service submits it to LHDN for you; this is stamping only, not SPEEDSIGN e-signing. As of September 2026, the stamping-only service is a RM39 service fee per submission + the LHDN stamping fee at the statutory rate, as a test price — book it on WhatsApp: the message opens pre-filled with the stamping-only request, and the team confirms the live figure and next steps with you before anything is paid. Not signed yet? SPEEDSIGN, the SPEEDHOME e-signing service, covers the agreement, the digital signatures and the LHDN stamping submission in one self-serve flow, priced at RM449 + SST per signing — the service page shows who it covers and how to book.
FAQ
How much is stamp duty on a tenancy agreement in Malaysia in 2026?
It follows the Finance Act 2024 scale — RM1 (under 1 year), RM3 (1-3 years), RM5 (3-5 years), or RM7 (over 5 years) per RM250 of annual rent — with a RM10 minimum. The RM2,400 exemption was removed in January 2025, so the full annual rent is dutiable from the first ringgit. Run your exact figures on the stamp duty calculator.
Is the agent's commission fixed at one month in Malaysia?
One month's gross rental is the LPEPH Seventh Schedule minimum for residential lettings, not a ceiling — the schedule's maxima rise with tenancy length (1.25 months up to 3 years, 1.5 for 3-4 years, 1.75 for 4-5 years, plus a quarter-month per renewal-option year beyond five). The schedule excludes serviced premises, and only agents registered under Act 242 may charge it.
What is the late penalty if I stamp after 30 days?
LHDN's published scale: within three months of the deadline the penalty is RM50 or 10% of the deficient duty, whichever is higher; after three months it rises to RM100 or 20%. Stamping on time is cheaper than the late fee alone — the calculator page works a full example.
Can my landlord refuse to stamp the agreement?
No one benefits from an unstamped agreement — it is inadmissible as evidence in a civil dispute until the duty (and any penalty) is paid, for either side. If your landlord delays, either party can file the stamping through MyTax within the 30-day window; the online stamping guide walks the steps. What that inadmissibility costs a landlord who has already let the unit — fines, back-duty and the retroactive fix — is set out in what is the penalty for renting out without a stamped tenancy agreement?.
Is there a legal cap on the security deposit?
No. Malaysia has no statutory residential rent-deposit cap; the amount is governed by your tenancy agreement, and a landlord may only retain what covers proven loss at move-out. The common stack is two months' security plus one month's advance rent and a half-month utility deposit.
Who pays the tenancy agreement charges, landlord or tenant?
By convention the tenant pays stamp duty and the drafting fee when the agreement is silent, but the allocation is negotiable — not a fixed legal rule. Put the split in writing before signing; the who-pays table above is the checklist.
What if my landlord and I disagree over a charge or the deposit?
File at the nearest Magistrates' Court. Claims up to RM5,000 use the small-claims procedure (no lawyer required); larger claims go to the Magistrates' or Sessions Court. Bring the stamped agreement, receipts, and dated photos as evidence. Civil contract claims must be brought within the Limitation Act 1953 window.
Get the tenancy agreement template
Moving from costs to the document itself? Download the tenancy agreement template — free, in English, BM or Chinese, whole unit or room, with the stamping and cost clauses already drafted. To total every rail of a tenancy in one run — rent, duty and fees — use the tenancy cost calculator. Then See live listings on SPEEDHOME and put the numbers against real homes.
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.