Summary: A valid Malaysian tenancy agreement requires the parties' details, property address, duration, monthly rent, deposit structure, termination rules, and signatures. Without a Residential Tenancy Act, this private contract is your only protection. It must be stamped via e-Duti Setem within 30 days—using Finance Act 2024 rates—to be admissible in court.**
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What a tenancy agreement must include in Malaysia
A valid Malaysian tenancy agreement needs at minimum: names and ICs of both parties, the property address, tenancy duration, monthly rent, deposit amounts, termination notice period, and a signature clause. No Residential Tenancy Act governs the form — the document is a private contract under the Contracts Act 1950, so what you include determines what you can enforce.
Malaysia still has no Residential Tenancy Act in force as of 2026; the draft Bill has not been tabled in Parliament. That means there is no prescribed form, no statutory minimum content, and no government template you are required to use. Every right you want to rely on must be written into the agreement. A court can only enforce what is on paper. If you need the document itself explained first — parties, deposits, stamping and enforceability — start with what is a tenancy agreement in Malaysia, then come back to the clause checklist.
Use the stamp duty calculator below to work out the duty due on your agreement, then work through the clause checklist that follows. For a standalone calculator you can bookmark, see the rental agreement stamping fee calculator.
How does the tenancy stamp duty calculator work?
Enter your monthly rent and tenancy duration. The calculator uses the Finance Act 2024 rates (effective January 2025): RM1 / RM3 / RM5 / RM7 per RM250 of annual rent by lease duration. The RM2,400 annual-rent exemption was removed in January 2025 — the full annual rent is taxable from the first ringgit.
What does the worked example on stamp duty by rent and duration show?
For a tenancy signed at RM2,000 per month, here is the duty under Finance Act 2024 rates. Annual rent = RM2,000 × 12 = RM24,000. Divide by RM250 and multiply by the applicable rate.
| Duration | Rate per RM250 | Annual rent | Duty units | Stamp duty |
|---|---|---|---|---|
| 1 year or less | RM1 | RM24,000 | 96 | RM96 |
| Over 1 year to 3 years | RM3 | RM24,000 | 96 | RM288 |
| Over 3 years to 5 years | RM5 | RM24,000 | 96 | RM480 |
| Over 5 years | RM7 | RM24,000 | 96 | RM672 |
Additional copies: RM10 per copy. Stamping must be done within 30 days of signing. Stamping is done via e-Duti Setem on MyTax (mytax.hasil.gov.my), which replaced the STAMPS portal from January 2026. Source: Finance Act 2024; LHDN e-Duti Setem.
Late stamping penalty (from 2025): RM50 or 10% of duty (whichever is higher) for delay up to 3 months; RM100 or 20% of duty (whichever is higher) for delay over 3 months. An unstamped agreement is inadmissible as evidence in court until the duty and penalty are paid.
How stamp duty is calculated
Stamp duty applies to the instrument (the signed document), not the transaction. The calculation is: (Annual rent ÷ 250) × rate, rounded up, with a minimum of RM10.
The Finance Act 2024 raised the rates for agreements over one year and removed the former RM2,400 exemption. Pre-2025 rates were RM1 / RM2 / RM4 per RM250 and stopped at three years; the current scale adds a fourth band for leases over five years at RM7. Every competitor page still showing the old RM2 or RM4 rates, or still subtracting RM2,400 from the annual rent, will produce a lower — and incorrect — duty figure.
Who pays: by convention, the tenant pays stamp duty if the tenancy agreement is silent on the point. This is convention, not a statutory allocation. You can negotiate otherwise and write the agreed split into the agreement.
For a fuller worked example on different monthly rents, see tenancy agreement charges in Malaysia, which includes a table showing duty at RM1,000, RM1,500, RM1,800, RM2,000, and RM3,000 monthly rent across all four lease-length bands.
The core clauses: what to include
A well-drafted Malaysian tenancy agreement covers seven mandatory information items and at least six protective clauses. Missing a clause means you cannot enforce that right.
Mandatory identification and property clauses
Every tenancy agreement must state:
- Full legal names of landlord and tenant (matching IC/passport)
- IC or passport numbers of both parties
- Property address in full, including unit number, floor, building name, postcode, and state
- Tenancy duration — start date, end date, and total months
- Monthly rent in figures and words
- Deposit structure — security deposit amount, utility deposit amount, and any other upfront payment
- Signature of both parties with date and witness if required
Malaysia has no statutory cap on the residential security deposit. The deposit is governed entirely by the agreement and general contract law (Contracts Act 1950 s.74 — damages limited to proven loss). A landlord's right to retain the deposit is limited to actual proven loss, not a blanket entitlement to keep the whole sum.
Key protective clauses for both parties
| Clause | What it protects | Who benefits |
|---|---|---|
| Termination notice period | How many days' notice each party must give | Both |
| Early termination penalty | Forfeiture or compensation formula if either party exits early | Both |
| Rent due date and late-payment consequence | Avoids dispute on when rent is \"late\" | Landlord |
| Permitted use | Residential only; prohibit subletting, home business, or Airbnb without written consent | Landlord |
| Maintenance responsibilities | List who fixes what — minor repairs vs structural | Both |
| Inventory and condition report | Signed schedule of fixtures and fittings at handover | Both |
| Utility transfer | Who puts utilities in their name and when | Both |
| Holdover clause | If the tenant stays past expiry, double rent may be claimed under Civil Law Act 1956 s.28(4) where the agreement includes this clause | Landlord |
| Renewal option | Right to renew, on what terms, and notice period to exercise it | Tenant |
| Access for inspection | Landlord's right of entry with notice (48–72 hours is the norm) | Landlord |
Clauses competitors omit but SPEEDHOME builds in
Most agreement templates downloaded from portals skip the following — and landlords discover the gap at dispute time:
- Credit reporting consent: a verified rental default can be reported to a licensed credit reporting agency only where the tenant has given written consent in the tenancy agreement (Credit Reporting Agencies Act 2010). Without this clause you cannot lawfully report the default.
- House rules as an annexure: noise, visitors, pets, parking allocation, and smoking rules belong in an annexure, not buried in body text, so breach is clear.
- Handover photo confirmation: a clause confirming that photographs taken at handover form part of the inventory record eliminates disputes about pre-existing damage.
- Dispute resolution mechanism: since Malaysia has no dedicated residential tenancy tribunal, disputes go to the ordinary civil courts. A clause specifying that Kuala Lumpur Magistrates' Court has jurisdiction removes ambiguity about forum.
How to stamp the agreement: e-Duti Setem on MyTax
Since January 2026, all tenancy agreement stamping is done via e-Duti Setem on MyTax (mytax.hasil.gov.my). The STAMPS portal was decommissioned on 31 December 2025.
Steps:
- Sign the tenancy agreement (both parties)
- Log in to MyTax at mytax.hasil.gov.my
- Navigate to e-Duti Setem
- Enter the agreement details: rent, duration, number of copies
- Pay the duty and any penalty online
- Download the stamped certificate and attach it to the agreement
Stamp within 30 days of the execution date to avoid the late penalty. Keep both the signed agreement and the LHDN stamped certificate — these are what you would present in court if the agreement is disputed. This is the same clause-plus-stamping structure SPEEDHOME standardises on its own agreements: per platform operating data (2026), SPEEDHOME has managed 30,000+ tenancy agreements across Malaysia on exactly this model.
Tenancy agreement vs lease: what the National Land Code says
Under the National Land Code, a tenancy is an interest in land for a duration of up to three years; any interest exceeding three years is a lease and must be registered on the property title to bind third parties.
For most residential arrangements in Malaysia, this distinction is practical rather than academic. A residential tenancy of one or two years is a tenancy exempt from registration — it does not appear on the title and does not need to be registered with the land registry. It must still be stamped to be admissible in court. A lease of more than three years must be registered at the relevant land registry, and the stamp duty rate rises to the RM5 per RM250 band (three to five years) or the RM7 band (over five years).
If you are signing a long-form lease — for example, a three-plus-year arrangement on a commercial-residential unit — confirm with a qualified solicitor whether registration is required before execution. The checklist on this page covers the residential tenancy case of up to three years, which is where the vast majority of Malaysian residential arrangements fall.
Which utility clauses trap landlords?
Two utility regimes create liability traps for landlords when clauses are missing: TNB electricity liability follows who is the Registered User; sewerage liability under the Water Services Industry Act 2006 can fall on the property owner regardless of who occupies.
For TNB electricity, the person whose name is on the supply contract is the Registered User and bears outstanding arrears when the account closes. A landlord who remains the Registered User while the tenant consumes electricity is exposed to the tenant's unpaid bills. Include a clause requiring the tenant to apply for a Change of Tenancy at TNB before or within a short period of move-in, and to remain the Registered User for the duration of the tenancy.
For sewerage, Section 67(1) of the Water Services Industry Act 2006 (Act 655) imposes liability on the owner, management corporation, or occupier. Because the owner sits in the liability chain regardless of who occupies, a clause indemnifying the landlord — and requiring the tenant to reimburse any sewerage charge billed to the landlord as owner — provides a contractual recovery right where the statute does not.
Both clauses address different statutory regimes and different risk exposures. A tenancy agreement that is silent on utilities may leave the landlord bearing arrears run up by a tenant who has already vacated.
Renewal, holdover, and what happens at the end of the tenancy
A tenancy agreement should address three end-of-tenancy scenarios explicitly: the tenant renews, the tenant vacates on time, or the tenant stays beyond expiry. Without written terms for all three, the landlord's enforcement options narrow significantly.
Renewal option clause
A renewal option gives the tenant the right to renew the tenancy — typically on the same or renegotiated terms — by serving notice within a specified window before the end date. The clause should state:
- The notice period to exercise the option (commonly 30 to 60 days before expiry)
- Whether rent is automatically renegotiated at renewal or carries over on existing terms
- The duration of the renewed term
- Whether the new term requires a fresh stamped instrument (it does — a renewal letter is a new chargeable instrument under the Stamp Act 1949 and attracts the same Finance Act 2024 rate scale calculated on the new rent and duration)
Holdover clause
Where a tenant stays on after the tenancy end date without a signed renewal, the tenancy converts to a periodic tenancy by operation of law. If the agreement includes a holdover clause that invokes Civil Law Act 1956 s.28(4), a landlord can claim double the yearly value of the property for the period of holding over. Without such a clause, the claim for double rent does not arise automatically — it is conditional on the holdover clause being present in the agreement.
A clear holdover clause avoids the ambiguity of whether the landlord has accepted an implied month-to-month tenancy — which would extend the termination notice period and delay recovery of possession.
Deposit return timeline
State in the agreement the number of days within which the security deposit must be returned or disputed after vacant possession. Common practice in Malaysia is 14 to 30 days after the handover date. Write it down: the timeline, the mechanics of deduction, and the evidence (signed inventory, dated photos) required to support any deduction. A landlord who cannot produce a signed inventory at move-in is in a weak position to defend deductions that the tenant disputes.
For more on the deposit return process and what landlords can lawfully deduct, see the deposit return process in Malaysia.
Early termination: what your agreement must say
An early termination clause removes ambiguity about what either party owes when the tenancy ends before the agreed date. Without it, the default is general contract law: the departing party may owe the unexpired rent minus a landlord's duty to mitigate, which is hard for both sides to calculate and easy to dispute.
The clause should address three scenarios:
| Scenario | What the clause should say |
|---|---|
| Tenant exits early | Notice period required; penalty formula (e.g. forfeiture of security deposit, or a fixed number of months' rent in lieu) |
| Landlord exits early | Notice period required; refund of full deposit; any additional compensation if specified |
| Replacement tenant | Whether the existing tenant may substitute a replacement tenant the landlord approves, and how the deposit transfers |
A worked example on a RM2,000/month unit, 12-month agreement, tenant exits at month six with a two-month forfeit clause: the landlord retains the two-month security deposit (RM4,000) and is entitled to rent for any period between exit and re-letting, subject to a duty to take reasonable steps to re-let. The tenant pays rent through the actual handover date.
For the full early-exit playbook — including the written variation agreement skeleton, notice letter template, and court forum table — see early termination of a tenancy agreement in Malaysia.
Frequently asked questions
Is a tenancy agreement legally required in Malaysia?
No statute compels you to have a written tenancy agreement, but without one you have almost nothing enforceable. A verbal agreement is technically a contract, but proving its terms in court is difficult. In practice, any tenancy over a month should be in writing, signed, and stamped.
What happens if the tenancy agreement is not stamped?
An unstamped agreement is inadmissible as evidence in court proceedings until the outstanding duty and any late penalty are paid. The agreement itself is not void, but you cannot rely on it as a document in a dispute unless you stamp it and pay the penalty. Stamp within 30 days of signing to avoid the penalty.
Who pays the stamp duty — landlord or tenant?
By convention, the tenant pays stamp duty when the agreement is silent on this. It is not a statutory rule. You can negotiate a different split and write it into the agreement. Both parties signing the agreement are jointly and severally liable to LHDN for the duty.
Can the landlord keep the full deposit if the tenant breaks the tenancy early?
No. Malaysia has no statutory deposit cap, but the landlord's right to retain the deposit is limited to actual proven loss under general contract law (Contracts Act 1950 s.74). The agreement can include an early termination clause that specifies a defined penalty, which helps both parties understand the cost upfront. A landlord who retains more than the actual loss risks a Magistrates' Court claim.
What can I do if the deposit is not returned?
Deposit disputes are private contract matters decided in the ordinary civil courts. Claims up to RM5,000 can use the Magistrates' Court small-claims procedure with no lawyers required (Rules of Court 2012 Order 93). Larger claims go to the Magistrates' Court (up to RM100,000) or Sessions Court. Malaysia has no dedicated residential tenancy tribunal — the Tribunal for Consumer Claims does not hear private residential deposit disputes because a tenancy is an interest in land.
I downloaded a free tenancy agreement template online — is it enough?
Probably not. Most free templates found through a search cover the seven mandatory identification items but omit the protective clauses that matter most when something goes wrong. A generic template typically has names, address, rent, and duration — but skips or under-specifies the termination notice period, holdover clause, credit-reporting consent, and dispute-resolution forum. Because Malaysia has no Residential Tenancy Act and no prescribed form, a court can only enforce what is actually written into your agreement — a missing clause is not implied by law. Before signing, check your downloaded template against the core clauses checklist above, and specifically confirm it has the credit reporting consent, house rules annexure, handover photo confirmation, and dispute resolution clauses most free templates leave out.
Does Zero Deposit replace the need for a proper tenancy agreement?
No. Zero Deposit is a managed rental-risk system, not a financial guarantee product, and it does not replace a written, stamped tenancy agreement. It replaces the upfront cash deposit; in the rare case of severe end-of-tenancy damage the recoverable amount can be limited, so it is not a blanket guarantee. Not every unit qualifies. You still need a valid stamped agreement regardless of how the deposit is handled. See how SPEEDHOME supports landlords and check the deposit return process for what happens at tenancy end.
For the full breakdown of what signing a tenancy costs — including drafting and legal fees — see tenancy agreement charges in Malaysia.
Accuracy and corrections. The law on this page is cited from Contracts Act 1950, Civil Law Act 1956, Credit Reporting Agencies Act 2010 and National Land Code. Numbers are registry-bound and re-verified with each update. Found a mistake? [email protected].
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