Tenancy Agreement Legal Fee And Stamp Duty Calculation In Malaysia

Tenancy agreement is very important for both of the landlord and tenant. As a landlord, you would like to have your property well protected and away from unwanted troubles. As a tenant, you would like to have your interest protected during the tenancy period so your deposits is protected and avoid any legal action taken by the landlord. Hence, it is very important that the tenancy agreement is being written properly.

In fact, it is the best to hire lawyer to prepare your tenancy agreement as we don’t have the knowledge and skill to write the proper tenancy agreement. For your information, there is standardization in term of tenancy agreement charges in Malaysia and here is the guide for your references.

Important Notes: SPEEDHOME referral program is now live. Introduce us to your friend and you will get RM300 and they get RM100 discount. To find out more about our terms and condition, visit >> SPEEDHOME referral program FAQ.

Legal Fee for Tenancy Agreement period of 3 years and below:

First RM 10,000 rental – 25% of the monthly rent

Next RM 90000 rental– 20% of the monthly rent

More than RM 100,000 – negotiable

Legal Fee for Tenancy Agreement period of above 3 years:

First RM 10,000 rental – 50% of the monthly rent

Next RM 90000 rental– 20% of the monthly rent

More than RM 100,000 – negotiable

Stamp duty for Lembaga Hasil Dalam Negeri Malaysia:

Rental for every RM 250 in excess of RM 2400 rental

Less than 1 year: RM 1

Between 1-3 years: RM 2

More than 3 years: RM 3

Annual rental below RM 2400 – no stamp duty

Popular on SPEEDHOME:
House for rent in Ampang
House for rent Shah Alam
House for rent Sunway

For example, renting a property of RM 1000 per month and 1-year renting period:

Legal fee: RM 1000 x 25% = RM 250

Stamp duty: [RM 12000 (annual rent) – RM 2400]/RM 250 x RM 1 (1 year) = RM 38.4 > RM39

Hence, the total fees for a legal fee and stamp duty will be RM 250 + RM 39 = RM 289

To know the exact stamp duty you need to pay, you can visit our free stamping fee calculator.

We also provided an estimation of tenancy agreement legal fee and stamp duty fee in accordance to monthly rental :

Monthly Rental PriceTenancy Agreement FeeStamp Duty Fee
RM800 – RM1,500RM200 – RM375RM58 – RM124
RM1,501 – RM2000RM400 – RM500RM134 – RM172
RM2001 – RM2999RM500 – RM750RM172 – RM268

* The above is just a reference for usual market rate outside SPEEDHOME

Other than legal fee and stamp duty, the tenants are required to pay several deposits, such as earnest deposit (one month rental fee) as booking fee and security deposit (two months rental fee). Well, all of these are referring to what tenants generally have to pay in Malaysia using normal rental platforms. However, you can have a better choice now as SPEEDHOME offers completely Zero Deposit on all properties listed!

Introducing SPEEDMANAGE – Get things done faster and easier

SPEEDMANAGE is an online platform that allows you to sign the tenancy agreement digitally. You may read through the user guide to help you get started with creating a digital tenancy agreement via SPEEDMANAGE.

By using SPEEDMANAGE, there are several benefits as compared to the conventional way of agreement stamping.

Comparison SPEEDMANAGE to Lawyer tenancy agreement

SPEEDMANAGE benefits:

  • Signing Digital Tenancy Agreement online
  • No deposit needed
  • Zero lawyer fee
  • Simple and standard terms and Conditions
  • Faster renting process

Considerations:

  •  No one to explain or advice regarding the terms and conditions

Lawyer tenancy agreement benefits

  • Tenant and landlord can get professional advice regarding their terms and conditions writing
  • Agreement is written & revised by professional

Considerations:

  • Tenants are required to pay deposits
  • May need to go to several places to get the agreement done

SPEEDMANAGE is legal and the signed digital tenancy agreement and the duty stamped copy will be admissible in court under Section 7 of Electronic Commerce Act 2006 and Section 62(2) of Digital Signature Act 1997.

More information about SPEEDMANAGE

Our Speedsign fee is charged on tenants for RM399+ 6% SST for one-year lease agreement (inclusive of stamp duty).

You should consider your options whether you should use SPEEDMANAGE or lawyer tenancy agreement. SPEEDMANAGE is totally free for the landlord to sign the agreement. The tenant will pay RM399 for 1 year for the Speedsign fee. The fee is inclusive of the stamping fee. Besides, if tenant wishes to continue renting after the first year of the tenancy period has ended, the Speedsign fee for the subsequent years costs only RM199 + 6% SST per year.

On top of that, since everything of your renting process can be done by using SPEEDMANAGE, there is no leg work required. If you are having multiple properties to manage, everything can be done within your palm and you don’t have to hire anyone to do that.

For more information about SPEEDMANAGE, you can read it here. Download SPEEDMANAGE and create your online tenancy agreement immediately at speedmanage.com .

Any questions please feel free to email us at [email protected]

*** Currently it is only available for residential units ***

2 thoughts on “Tenancy Agreement Legal Fee And Stamp Duty Calculation In Malaysia

  • August 25, 2020 at 6:08 am
    Permalink

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

    Reply
    • August 26, 2020 at 1:30 am
      Permalink

      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

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