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.
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 stamp duty tenancy agreement calculator.
Stamp duty calculator
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.
Worked example: stamp duty by rent and duration
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.
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.
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.
FAQ
What is the first thing I should do before acting on this rental issue?
Start with the tenancy agreement, dated photos, payment records, and written messages. In Malaysia, rental disputes are easier to resolve when the facts are documented before anyone escalates, threatens, or relies on memory.
Can WhatsApp messages count as useful evidence?
Yes, they are useful supporting evidence, but they should not be your only record. Keep the signed tenancy agreement, receipts, inspection photos, notices, and any acknowledgement from the other party together in one folder.
Should I use a template or ask a lawyer?
Use a template for routine notices and checklists; get legal advice when possession, unpaid rent, deposit deductions, or court action is involved. A template helps you organise facts, but it cannot decide strategy for a disputed case.
Where should this lead after I understand the issue?
Tenants should compare verified listings before committing; landlords should tighten screening, documentation, and the tenancy agreement before the next handover. The practical next step is prevention, not just fixing one dispute.