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Tenancy Agreement Charges in Malaysia: A Simplified Guide for You

Landlords and tenants both want peace of mind. Landlords worry about their property, while tenants worry about their security deposit. That’s why having a well-written tenancy agreement is so important—it keeps everything clear, fair, and secure for both sides. Tenancy agreement charges in Malaysia are a crucial part of any such agreement, outlining the responsibilities and financial obligations of both parties.

Drafting a tenancy agreement isn’t as simple as jotting down a few rules. To make sure everything is legal and fair, we need to understand Malaysian laws. While you can try writing one yourself, it’s usually a good idea to get a lawyer involved to ensure the document covers all the important details.

But here’s the common problem:

  • Legal fees for tenancy agreements can be costly.
  • Stamp duty calculations are confusing.
  • Traditional agreements require time-consuming trips to lawyers and multiple signatures.

So, what if there was an easier, faster, and more affordable way to handle tenancy agreements?

Introducing SPEEDMANAGE – The Smarter Way to Rent

SPEEDMANAGE

With SPEEDMANAGE, you can skip the hassle of traditional agreements and switch to a fully digital solution:

  • No deposit required for tenants.
  • Zero lawyer fees for landlords.
  • Quick and secure digital signing from anywhere.
  • Transparent pricing: Tenants pay just RM449 (+8% SST) for a one-year agreement, inclusive of the stamp duty fee.

SPEEDMANAGE makes renting easier for everyone. We save you time and money, and help you avoid headaches.

Legal Fees for Tenancy Agreements charges in Malaysia

Knowing the costs of renting is important, whether you’re a landlord or a tenant. Here’s a guide to typical legal fees in Malaysia.

For Tenancy Agreement of 3 Years or Less:

  • First RM10,000 rental: 25% of the monthly rent
  • Next RM90,000 rental: 20% of the monthly rent
  • Above RM100,000 rental: Negotiable

For Tenancy Agreements Longer Than 3 Years:

  • First RM10,000 rental: 50% of the monthly rent
  • Next RM90,000 rental: 20% of the monthly rent
  • Above RM100,000 rental: Negotiable

Stamp Duty for Tenancy Agreements in Malaysia

Stamp Duty for Tenancy Agreements in Malaysia

Stamp duty is calculated based on the total rent amount and the duration of the tenancy:

  • Less than 1 year: RM1 for every RM250 of rental exceeding RM2,400 annually
  • Between 1-3 years: RM2 for every RM250 of rental exceeding RM2,400 annually
  • More than 3 years: RM3 for every RM250 of rental exceeding RM2,400 annually
  • Annual rental below RM2,400: No stamp duty

Here’s an example for a one-year tenancy agreement with a monthly rental of RM1,000:

  • Legal fee: RM1,000 x 25% = RM250
  • Stamp duty: [(RM12,000 annual rent – RM2,400)/RM250] x RM1 = RM39
  • Total fees: RM250 (legal fee) + RM39 (stamp duty) = RM289

Estimated Tenancy Agreements Fee and Stamp Duty Fee

Below is an estimation of the tenancy agreement fee and stamp duty fee based on the monthly rental amount:

Estimated Tenancy Agreement charges and Stamp Duty Fee

Note: These are approximate values. Actual costs may vary based on specific agreements and legal services.

Why Choose SPEEDMANAGE Over Traditional Tenancy Agreements?

Why Choose SPEEDMANAGE Over Traditional Tenancy Agreements?

SPEEDMANAGE is 100% legal and compliant with Malaysian laws under Section 7 of the Electronic Commerce Act 2006 and Section 62(2) of the Digital Signature Act 1997.

FAQs About Tenancy Agreements

What is a tenancy agreement fee?

Also mean tenancy agreement charges. It refers to the cost of preparing the tenancy agreement, which includes legal fees and, in some cases, stamp duty.

Who pays for the tenancy agreement fee?

Typically, the tenant covers the legal fees and stamp duty, but this can vary based on mutual agreement between the landlord and tenant.

Is a digital tenancy agreement legal in Malaysia?

Yes, digital agreements signed via SPEEDMANAGE are fully legal and admissible in court under Malaysian law.

How does SPEEDMANAGE simplify the tenancy process?

SPEEDMANAGE eliminates the need for physical meetings, lawyer fees, and deposits, making it faster and more affordable.

What happens if I want to renew my tenancy with SPEEDMANAGE?

For renewals, the tenant only pays RM299 (+8% SST) per year, which includes the stamp duty fee.

Renting made easy with SPEEDMANAGE! Skip the hassle of complicated fees, confusing taxes, and endless paperwork. Sign your agreement digitally and enjoy the simple life. Understanding tenancy agreement Charges in Malaysia is crucial for both landlords and tenants. SPEEDMANAGE simplifies this process, making it easy to understand and manage these charges, ensuring a smooth and transparent rental experience.

Visit SPEEDMANAGE to get started or contact us at [email protected] for more details.

6 thoughts on “Tenancy Agreement Charges in Malaysia: A Simplified Guide for You

  • Selvanathan

    Is it the landlord or tenant should pay the house rental agreement legal fee? Who should pay ?

    Reply
    • Ming Min Wong

      Well there is no law or rule stated in Malaysia that who should pay for the legal fee, but normally tenant will pay for it.

      Reply
  • Hi on top of my head SST is not imposed on monthly rentals unlike the previous GST which were imposed on the monthly rentals of commercial properties only. Please clarify.

    Reply
  • Pauline

    How is the stamp duty be calculate if tenancy is on month to month basis ?

    Reply
    • Alicia

      the stamp duty is only calculated on a 1 time basis based on your monthly rental rate

      Reply

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