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, Civil Law Act 1956, and 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.
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.
SPEEDHOME-only angle: SPEEDHOME's SPEEDSIGN service (RM449 + SST, SPEEDHOME landlords only) covers digital signing and stamping via e-Duti Setem within 7 working days. The system selects the correct rate band automatically, which matters because the single most common stamping error across the field is still applying the old RM2 rate for the 1–3 year band. For the full self-service stamping walkthrough, see how to stamp a tenancy agreement in Malaysia.
Rent, payment terms, and late-payment clauses
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 |
|---|---|
| Monthly rent | RM amount in figures and words |
| Due date | Specific day (e.g. 1st, 7th) |
| Grace period | 7–14 days is typical |
| Late penalty | RM amount or % per day; state the cap |
| Missed-payment trigger | 2–3 missed payments as grounds for written notice |
| Payment method | Bank transfer to named account; record every transfer |
SPEEDHOME platform records provide a digital audit trail of every payment on managed tenancies — useful when either side disputes whether a payment was received or on time.
Security deposit: amount, deductions, and 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.
Alternative: SPEEDHOME's Zero Deposit option is a managed rental-risk system — not a financial guarantee product — that removes the upfront cash burden for tenants. Not every unit qualifies; check the live listing to confirm eligibility.
Notice period, early termination, and holdover
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.
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
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.
Subletting, permitted use, and prohibited activities
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.
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.
Is stamp duty compulsory for all tenancy agreements?
Yes. A tenancy agreement is a stamp-duty instrument under Malaysian law. It must be stamped at LHDN via e-Duti Setem on MyTax (mytax.hasil.gov.my) within 30 days of signing. An unstamped agreement is not admissible as evidence in court until the duty plus the late penalty is paid.
Late stamping attracts a penalty of RM50 or 10% of deficient duty (whichever is higher) within 3 months of the stamping deadline, rising to RM100 or 20% after 3 months. Since January 2026, e-Duti Setem on MyTax is the only LHDN stamping route — the STAMPS portal was decommissioned on 31 December 2025.
What happened to the RM2,400 tenancy stamp duty exemption?
The RM2,400 annual-rent exemption was removed from January 2025 under the Finance Act 2024. Stamp duty now applies to the full annual rent from the first ringgit, at the rate set by the lease duration band. Any guide or calculator still showing the exemption is using pre-2025 rules.
This is the most common error across competitor stamp duty guides as of mid-2026. Check that any calculator you use does not subtract RM2,400 from the annual rent before applying the rate — that logic was removed.
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.
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. For landlords using SPEEDHOME, SPEEDHOME landlord services covers signing, stamping, and ongoing tenancy management.
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.