A Malaysian tenancy agreement must clearly state essential terms like rent, duration, and a RM150–RM300 maintenance threshold separating tenant and landlord repair duties. It must be stamped via e-Duti Setem within 30 days, using Finance Act 2024 rates (e.g., RM1 per RM250 for one year), to be enforceable in court.
What are the key points of a tenancy agreement?
A Malaysian tenancy agreement must state: the full names of all parties, the property address and permitted use, the monthly rent and due date, the tenancy duration, the security deposit amount and return conditions, maintenance responsibilities, and the notice period for early termination or non-renewal. Every clause affects what you can enforce — and how much stamp duty you pay.
There is no Residential Tenancy Act in force in Malaysia as of 2026 — the proposed RTA is still in "final drafting" and has not been tabled in Parliament. Residential tenancies are governed by the agreement itself together with general law: the Contracts Act 1950, the Civil Law Act 1956, and the Specific Relief Act 1950. The agreement is not a formality; it is the primary legal document for both landlord and tenant. Once signed and stamped within 30 days at LHDN's e-Duti Setem portal, it is enforceable in the civil courts.
Before diving into individual clauses, the fastest way to see what the agreement will cost to stamp — and how the duration choice changes that cost — is the stamp duty tenancy agreement calculator.
Reading order if you only have ten minutes. Read the duration clause, the rent and late-payment clause, the deposit clause, and the notice/early-termination clause before anything else. These four are the ones a dispute will turn on at move-out. The maintenance, subletting, and permitted-use clauses matter, but the first four decide whether the tenancy is enforceable at all.
Tenancy duration — and why it changes your stamp duty
Tenancy duration is how long the agreement runs: a fixed term (most commonly 12 months) with a defined start and end date, or a periodic tenancy (month-to-month). Duration is the single variable that moves you across the Finance Act 2024 stamp duty rate bands — so a 1-year and a 2-year agreement on the same unit cost different amounts to stamp.
Under the Finance Act 2024, stamp duty is assessed on the full annual rent with no exemption (the former RM2,400 annual-rent exemption was removed from January 2025). The rate per RM250 of annual rent depends entirely on the lease duration:
| Tenancy duration | Rate per RM250 of annual rent | Old rate (pre-Jan 2025) |
|---|---|---|
| 1 year or less | RM1 | RM1 |
| Over 1 year to 3 years | RM3 | RM2 |
| Over 3 years to 5 years | RM5 | RM4 |
| Over 5 years | RM7 | RM4 |
Source: Finance Act 2024, LHDN. Duty is on the full annual rent from the first ringgit.
A typical 12-month agreement at RM2,000/month annual rent = RM24,000. Duty = RM24,000 ÷ 250 × RM1 = RM96. The same unit on a 24-month agreement: RM24,000 ÷ 250 × RM3 = RM288. Duration choice is not just about commitment; it has a direct RM cost.
What the clause should say: A clear start date and end date (e.g. "1 January 2026 to 31 December 2026"), and a statement of what happens at expiry — automatic month-to-month at the same rent, a renewal at an agreed new rent, or vacant possession. Silence on continuation has, in practice, the same effect as an automatic month-to-month tenancy, which can drag on after you expected to be free.
For the full self-service stamping walkthrough, see how to stamp a tenancy agreement in Malaysia. If you are considering any SPEEDHOME agreement-related option, confirm its current terms directly with SPEEDHOME before relying on it.
Rent, payment terms, and late-payment clauses: what must the TA state?
State the monthly rent in RM in both figures and words, the due date, the accepted payment method, the grace period, and the late-payment penalty. A bank transfer to a named account is the only payment method that produces a reliable paper trail for both sides.
| Clause element | What to include | What to push back on |
|---|---|---|
| Monthly rent | RM amount in figures and words | Vague "rent as agreed" without a number |
| Due date | Specific day (e.g. 1st, 7th) | "Within the first week" — pick a fixed day |
| Grace period | 7–14 days is typical | No grace period at all, or a one-day grace |
| Late penalty | RM amount or % per day; state the cap | An uncapped daily % that compounds |
| Missed-payment trigger | 2–3 missed payments as grounds for written notice | A single missed payment triggering termination |
| Payment method | Bank transfer to named account; record every transfer | Cash in hand with no receipt |
Security deposit: how much, what deductions, and what return timeline?
Two months' rent as a security deposit plus half a month's rent as a utility deposit is the market norm. State the deposit amount, an itemised list of deductible events, and the return timeline after vacant possession — 14–30 days is the common range. These terms are governed by your agreement, not statute.
Malaysia has no statutory residential deposit cap under current law. There is also no statutory return deadline for deposits — the proposed RTA that would introduce these rules is not yet in force. The agreement's own wording governs both. A landlord's right to retain deposit is limited to proven loss under the Contracts Act 1950 s.74 — keeping the full deposit when actual damage is minor is a breach.
| Deposit type | Typical amount | Purpose |
|---|---|---|
| Security deposit | 2 months' rent | Unpaid rent and tenancy breaches |
| Utility deposit | ½ month's rent | Unpaid utility bills at exit |
| Access card / key | RM100–300 | Replacement cost |
Deposit disputes that are not resolved between the parties go to the civil courts. Claims up to RM5,000 use the Magistrates' Court small-claims procedure (no lawyer needed). Larger claims go to the Magistrates' or Sessions Court. There is no dedicated residential tenancy tribunal in Malaysia.
What the clause should say: "The Landlord shall return the security deposit within 14 days of vacant possession, less any itemised deductions for damage beyond fair wear and tear, unpaid rent, or unreturned keys. A written deduction statement with photographic evidence shall be provided to the Tenant." Avoid clauses that say "deposit refundable at landlord's discretion" — these are harder to enforce on the tenant side.
Notice period, early termination, and holdover: what should the TA say?
State the notice period (typically 2 months' written notice from either side) and the consequence of early termination: forfeiture of deposit, rent in lieu of notice, or a buyout clause. If the tenant overstays after the agreement ends, the landlord may at their option claim double rent for the holdover period.
There is no Malaysian statute that fixes a default residential tenancy notice period as of 2026. The window you have lives in the agreement; 2 months' written notice is the common market term, but the agreement can set a different number as long as both sides sign it.
Under section 28(4)(a) of the Civil Law Act 1956, a landlord may charge a tenant who holds over after the tenancy ends double the rent for the period the tenant overstays, until vacant possession is given up. This right comes from statute; the landlord must clearly elect to claim it — it is not automatic.
Agreements that are silent on early termination leave both sides relying on general contract law, which means court proceedings to resolve. The most practical clause structure:
- Notice period: 2 months' written notice from either side.
- Early termination fee: rent equivalent for the remainder of the notice period.
- Deposit treatment: security deposit may be applied in lieu of notice, or returned after deductions if the buyout fee is paid separately.
Maintenance responsibilities: how are they assigned?
Assign repair responsibilities in the agreement and set a cost threshold — below which the tenant handles and above which the landlord must act. Without a threshold, minor repair disputes escalate into contested deductions at move-out.
| Repair type | Typical responsibility |
|---|---|
| Light bulbs, minor leaks, pest control | Tenant |
| Air-conditioner cleaning and filter | Tenant |
| Air-conditioner compressor or refrigerant | Landlord |
| Water heater tank failure | Landlord |
| Structural repairs, roof, main plumbing | Landlord |
| Major appliance failure (age-related) | Landlord |
The cost threshold separating tenant and landlord obligations is typically set at RM150–300 in Malaysian residential agreements. Above the threshold, the landlord must respond within a stated timeframe — 7–14 days for non-emergency items. Repairs below the threshold should not be deducted from the deposit at move-out unless agreed in writing.
What the clause should say: "The Tenant shall be responsible for repairs up to RM[X] per item. The Landlord shall be responsible for repairs above that threshold and shall respond within 14 days of written notice for non-emergency items." Without the threshold figure, both sides end up arguing about every bulb.
Subletting, permitted use, and prohibited activities: what must the TA state?
State explicitly whether subletting is allowed, whether a home office or business registration at the address is permitted, and whether short-term rental platforms are prohibited. Silence on these points is interpreted against the party who drafted the clause — usually the landlord.
Strata properties (apartments and condominiums) may also have JMB or management corporation by-laws that restrict pets, renovation works, and short-term rentals. The tenancy agreement should require the tenant to comply with building by-laws and be clear that any JMB fines arising from the tenant's use of the unit are the tenant's cost.
What the clause should say on subletting: "The Tenant shall not sublet the whole or any part of the Property without the Landlord's prior written consent. Any approved sublet does not create a new tenancy relationship between the sub-tenant and the Landlord." The second sentence matters: without it, a sub-tenant can argue they have a direct relationship with the landlord.
12-month vs 24-month tenancy: the trade-off at a glance
The duration choice is the single decision that changes both the stamp-duty rate and the renewal friction. A 12-month agreement keeps the cost down and the exit window open; a 24-month agreement costs more to stamp but removes the annual renewal conversation. Pick by what you actually expect the tenancy to last, not by the headline rate.
| Dimension | 12-month agreement | 24-month agreement |
|---|---|---|
| Stamp duty rate band (Finance Act 2024) | RM1 per RM250 of annual rent | RM3 per RM250 of annual rent |
| Stamp duty on a RM2,000/month unit | RM96 | RM288 |
| Renewal friction | One renewal negotiation at month 11–12 | One renewal negotiation at month 23–24 |
| Exit flexibility if plans change | Two months' notice near the end of the term | Two months' notice near the end of the term, but the early-exit cost is larger |
| Best for | Tenants who might relocate for work within a year | Tenants who want a settled home for two years and want to avoid the annual rent review |
A 12-month agreement is not always cheaper overall. If a 24-month agreement locks in a known rent figure for two years while the market rises, the saved rent increase can exceed the higher stamp duty. Run the comparison on the stamp duty calculator before you decide; the rate is the only number that mechanically differs.
Frequently asked questions
What does tenancy duration mean in Malaysia?
Tenancy duration is the fixed period covered by the signed agreement — typically 12 months (1 year) or 24 months (2 years). It sets the start and end dates, determines the Finance Act 2024 stamp duty rate band, and defines when notice is required for renewal or vacant possession.
Most Malaysian residential tenancies run for 12 months. A 24-month agreement costs more to stamp (RM3 per RM250 vs RM1 per RM250) but provides more stability and avoids the cost and disruption of annual renewal negotiations. Both sides can also agree on a longer duration (over 3 years), but that moves into a higher rate band and — for tenancies over 3 years — requires Land Office registration as a formal lease.
Who pays stamp duty — landlord or tenant?
By convention, the tenant pays stamp duty on the tenancy agreement if the agreement is silent on who is liable. This is a market convention, not a statutory rule. The parties may agree otherwise, and some agreements split the cost or assign it to the landlord.
The Stamp Act imposes duty on the instrument, not on a named party. In practice, the tenant typically bears the cost as part of move-in expenses, but the allocation is negotiable and must be stated in the agreement if the default convention is not acceptable to either side.
Can a landlord force a tenant out without a court order?
No. A landlord cannot lawfully evict by self-help. Removing a tenant's access, disconnecting water or electricity, or removing a tenant's belongings without a court order is unlawful under s.7(2) of the Specific Relief Act 1950 and can expose the landlord to civil liability.
Recovery of possession from a non-paying or overholding tenant requires a court process: a written demand, then a Writ of Possession to recover the unit and/or a Writ of Distress to recover arrears, enforced by the court bailiff.
What is the difference between a tenancy and a lease?
A tenancy typically runs for up to 3 years and is governed primarily by the agreement itself — no Land Office registration is required. A lease of more than 3 years must be formally registered with the Land Office. Most Malaysian residential rentals use a tenancy, not a registered lease.
The distinction also affects stamp duty: tenancies over 5 years carry the highest rate band (RM7 per RM250 of annual rent). For ordinary 1–2 year residential arrangements, a standard tenancy agreement is the correct instrument.
Does a WhatsApp message count as evidence in a tenancy dispute?
Yes — it is useful supporting evidence, but it should not be your only record. Keep the signed tenancy agreement, stamped certificate, payment receipts, inspection photos, and any acknowledgement from the other party together in one folder. WhatsApp is most useful for showing what was agreed or when a notice was sent; it is weaker on its own for proving condition or value.
To calculate the stamp duty on your tenancy agreement, see the stamp duty tenancy agreement calculator. To understand the full e-Duti Setem stamping process step by step, see how to stamp a tenancy agreement in Malaysia.
How this page stays accurate. The legal statements rest on Contracts Act 1950, Civil Law Act 1956 and Specific Relief Act 1950; figures are checked against a dated fact registry at every update. Report an error: [email protected].