{"id":49251,"date":"2026-04-25T02:52:44","date_gmt":"2026-04-24T18:52:44","guid":{"rendered":"https:\/\/speedhome.com\/blog\/landlord-guide-malaysia\/"},"modified":"2026-06-06T13:28:28","modified_gmt":"2026-06-06T05:28:28","slug":"landlord-guide-malaysia","status":"publish","type":"post","link":"https:\/\/speedhome.com\/blog\/landlord-guide-malaysia\/","title":{"rendered":"Landlord Guide Malaysia: How to Rent Out Your Property (2026)"},"content":{"rendered":"\n

Renting out property in Malaysia generates passive income \u2014 but skipping tenant screening, not stamping the tenancy agreement, or leaving TNB in your own name puts you one bad tenant away from RM20,000 in losses and 6 months in court. This guide covers the full process from listing to deposit return.<\/p>\n\n\n

Regional note:<\/strong> Laws cited in this article \u2014 including the Specific Relief Act 1950 and Distress Act 1951 \u2014 apply to Peninsular Malaysia<\/strong>. Sarawak and Sabah operate under separate state legislation (Sarawak Tenancy Ordinance Cap. 70; Sabah state statutes). If you are in East Malaysia, verify the applicable laws in your state before taking action. This is general information, not legal advice.<\/div>\n\n\n\n\n

Before You List: What You Need in Place<\/h2>\n\n\n\n
\n\n
Requirement<\/th>Why it matters<\/th>How to do it<\/th><\/tr><\/thead>\n
Property condition documented<\/td>Baseline for deposit deductions<\/td>Full video walkthrough before tenant moves in<\/td><\/tr>\n
Legal tenancy agreement<\/td>Defines terms, protects both parties<\/td>Solicitor-drafted template or SPEEDSIGN<\/td><\/tr>\n
Fire insurance<\/td>Structural damage not covered by tenant<\/td>Standard fire policy from any Malaysian insurer<\/td><\/tr>\n
LHDN tax registration<\/td>Rental income is taxable<\/td>Declare via e-Filing; claim deductions<\/td><\/tr>\n<\/tbody>\n<\/table><\/figure>\n\n\n\n

Tenant Screening: The Step Most Landlords Skip<\/h2>\n\n\n\n

The 2-month deposit is not a risk management tool \u2014 it’s partial cost recovery.<\/strong> If a tenant defaults 4 months and causes RM8,000 damage, the deposit covers less than half. Real protection is knowing who you’re renting to before handing over keys.<\/p>\n\n\n\n\n

\"Rent<\/figure>\n\n\n\n\n
    \n
  • Credit check<\/strong> \u2014 ask the tenant to self-pull a CTOS report (RM27.90) if you are screening manually. A court judgment shown there can signal repayment risk. For applications through SPEEDHOME, tenant screening is handled through Experian Malaysia (formerly RAMCI).<\/li>\n
  • Income verification<\/strong> \u2014 3 months payslips or bank statements. Rent should not exceed 30% of gross income.<\/li>\n
  • Employment confirmation<\/strong> \u2014 verify employer exists and the letter is genuine. Rental fraud cases increasingly use fabricated employment documents.<\/li>\n
  • MDI bankruptcy check<\/strong> \u2014 free IC lookup at myinsolvensi.mdi.gov.my. A bankrupt tenant cannot be sued effectively.<\/li>\n<\/ul>\n\n\n\n

    Related: How to Screen Tenants in Malaysia Legally | Can You Blacklist a Tenant in Malaysia?<\/p>\n\n\n\n

    The Tenancy Agreement: Get This Right<\/h2>\n\n\n\n

    An unstamped tenancy agreement is inadmissible in court<\/strong> \u2014 the most expensive administrative mistake Malaysian landlords make. Stamp within 30 days via e-Duti Setem at mytax.hasil.gov.my.<\/p>\n\n\n\n\n

    \"Rent<\/figure>\n\n\n\n\n
    \n\n
    Duration<\/th>Rate (per RM250 annual rent)<\/th><\/tr><\/thead>\n
    1 year or less<\/td>RM1<\/td><\/tr>\n
    1\u20133 years<\/td>RM3<\/td><\/tr>\n
    3\u20135 years<\/td>RM5<\/td><\/tr>\n
    More than 5 years<\/td>RM7<\/td><\/tr>\n<\/tbody>\n<\/table><\/figure>\n\n\n\n

    The RM2,400 rent exemption was removed from January 2025 \u2014 all agreements must now be stamped regardless of rent amount.<\/p>\n\n\n\n

    Related: Complete Guide to Tenancy Agreements | Stamp Duty Calculator Use the 2026 stamp duty calculator for an exact figure.<\/p>\n\n\n\n\n

    \"Rent<\/figure>\n\n\n\n\n

    TNB: Transfer Before Handing Over Keys<\/h2>\n\n\n\n

    If TNB stays in your name, you’re liable for every ringgit of unpaid electricity<\/strong> \u2014 including bills reaching RM5,000\u201320,000\/month from cryptocurrency mining. Execute a Change of Tenancy via MyTNB before move-in. Takes 1\u20133 working days, free.<\/p>\n\n\n\n

    Related: TNB Change of Tenancy: Step-by-Step Guide<\/p>\n\n\n\n

    Non-Payment: The Legal Process<\/h2>\n\n\n\n

    Do not change locks. Do not cut utilities. Do not remove belongings.<\/strong> All illegal under Section 7(2) SRA 1950. The tenant can counter-sue \u2014 and win.<\/p>\n\n\n\n

    Legal process: written demand (14 days cure) \u2192 Writ of Distress (rent recovery, RM3K\u20139K) and\/or Writ of Possession (eviction, RM10K\u201325K, 4\u201312 months). File both simultaneously.<\/p>\n\n\n\n

    Related: Eviction Laws in Malaysia | Writ of Distress vs Writ of Possession<\/p>\n\n\n\n

    Rental Income Tax<\/h2>\n\n\n\n

    Rental income is taxable under Section 4(d) ITA 1967. Deductible (Section 33):<\/strong> mortgage interest, assessment tax, quit rent, fire insurance, repairs and maintenance (not improvements), management fees, agent commission. Not deductible:<\/strong> renovation, furniture, loan principal repayment.<\/p>\n\n\n\n

    Related: Tax Deductions for Malaysian Landlords | Are Repairs Tax-Deductible?<\/p>\n\n\n\n

    Should You Offer Zero Deposit?<\/h2>\n\n\n\n

    Zero deposit reduces friction \u2014 larger applicant pool, faster fill, lower vacancy. The 2-month cash buffer is replaced by SPEEDHOME Zero Deposit eligibility, screening, payment controls, and rental protection for eligible transactions. Coverage, limits, and exclusions depend on current product terms. See: Zero Deposit for Landlords: The Real Math.<\/p>\n\n\n\n

    Frequently Asked Questions<\/h2>\n\n\n\n
    \n
    \n

    What do I need to rent out my property in Malaysia?<\/h3>\n
    \n

    Stamped tenancy agreement, documented property condition (video walkthrough), TNB Change of Tenancy before move-in, and LHDN tax registration. Screening minimum: credit check, income verification, employment confirmation.<\/p>\n<\/div>\n<\/div>\n

    \n

    How much can I deduct from the security deposit?<\/h3>\n
    \n

    Only for damage beyond normal wear and tear, not pre-existing, and documented. Cannot deduct for: reasonable cleaning, normal painting, pre-existing conditions, or items not specified in the TA. Disputed deductions can be challenged at Small Claims Court.<\/p>\n<\/div>\n<\/div>\n

    \n

    Do I need to declare rental income to LHDN?<\/h3>\n
    \n

    Yes \u2014 Section 4(d) ITA 1967. Declare via LHDN e-Filing. Allowable deductions (mortgage interest, assessment tax, quit rent, repairs, insurance) often reduce the taxable amount significantly. Failure to declare is a tax offence.<\/p>\n<\/div>\n<\/div>\n

    \n

    What happens if my tenant stops paying rent?<\/h3>\n
    \n

    Issue formal written demand (14-day cure period). File Writ of Distress (rent recovery, RM3K\u20139K) and\/or Writ of Possession (eviction, RM10K\u201325K, 4\u201312 months) at Magistrate Court. Self-help eviction is illegal and exposes you to counter-suit.<\/p>\n<\/div>\n<\/div>\n

    \n

    Is it worth using a property agent to find tenants?<\/h3>\n
    \n

    Agents charge ~1 month commission and manage viewings. Direct platforms eliminate commission but you handle viewings yourself. Screening quality varies by agent \u2014 verify their process. SPEEDHOME includes Experian-backed screening with no commission.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n