---
title: "Tenant's Guide to Renting in Malaysia (Deposits & Agreements)"
description: "A tenant's money-and-paperwork checklist for renting in Malaysia in 2026: the 2+1+0.5 deposit, tenancy stamp duty under the Finance Act 2024 and e-Duti Setem, what to check in the agreement, your rights and duties, and how to get your deposit back."
datePublished: "2025-10-05"
dateModified: "2025-10-05"
canonical: "https://www.superhomes.my/resources/renting-property-guide-malaysia"
---

# Tenant's Guide to Renting in Malaysia (Deposits & Agreements)

To rent a home in Malaysia in 2026, expect to pay about **3.5 months' rent upfront**: a 2-month security deposit, 1 month of advance rent and a half-month utility deposit, plus stamp duty on the tenancy agreement (RM1 for every RM250 of annual rent on a 1-year tenancy). No law caps deposits yet, so your signed, stamped agreement is what protects you.

Renting is often seen as easier than buying, but it comes with its own set of rules. This guide is the tenant's checklist: what you pay and when, what the agreement must say, what the law does and does not give you, and how to leave with your deposit intact. For the step-by-step search process and rent levels by area, see our [complete guide to renting a house in Malaysia](/resources/renting-house-malaysia-guide).

## Updated: The Standard "2 + 1 + 0.5" Deposit

When you rent a room or house, expect to pay these upfront costs:

1.  **Security Deposit (2 Months):** Refundable at the end of the tenancy, less any unpaid rent or damage beyond fair wear and tear.
2.  **Advance Rental (1 Month):** Your first month's rent, paid in advance.
3.  **Utilities Deposit (0.5 Month):** Refundable after the final water, electricity and other bills are settled.
4.  **Stamp duty on the tenancy agreement:** Usually paid by the tenant under the agreement.
5.  **Agreement preparation fee:** Only if a lawyer or agent charges one. Many landlords use a standard template; ask who pays before you sign.

**Total Upfront:** Roughly **3.5 months'** worth of rent, plus stamp duty.

Some landlords also take an **earnest (booking) deposit**, often a fraction of one month's rent, when you accept the offer. It should be credited towards the amounts above when you sign. Get a receipt that says so, and what happens to it if the landlord backs out.

### What You Pay Upfront at Common Rent Levels

| Monthly rent | Security (2 months) | Advance rent (1 month) | Utility deposit (0.5 month) | Stamp duty, 1-year tenancy | Total upfront |
| :--- | :--- | :--- | :--- | :--- | :--- |
| RM1,200 | RM2,400 | RM1,200 | RM600 | RM58 | **RM4,258** |
| RM1,500 | RM3,000 | RM1,500 | RM750 | RM72 | **RM5,322** |
| RM2,000 | RM4,000 | RM2,000 | RM1,000 | RM96 | **RM7,096** |
| RM3,000 | RM6,000 | RM3,000 | RM1,500 | RM144 | **RM10,644** |

*SuperHomes calculation. Stamp duty = annual rent / RM250, rounded up, x RM1, the Finance Act 2024 rate for a tenancy of up to one year. Excludes any agreement preparation fee.*

### Stamp Duty on the Tenancy Agreement

Since **1 January 2025**, the old exemption for the first RM2,400 of annual rent no longer applies, so duty is charged on the full annual rent:

| Tenancy length | Rate | Example: RM2,000 a month (RM24,000 a year) |
| :--- | :--- | :--- |
| Up to 1 year | RM1 for every RM250 (or part) of annual rent | RM96 |
| Over 1 year, up to 3 years | RM3 for every RM250 (or part) of annual rent | RM288 |

Since **1 January 2026**, tenancy agreements are stamped by self-assessment on LHDN's **e-Duti Setem** service (MyTax), and duty is due within 30 days of signing. An unstamped agreement cannot be used as evidence in court until it is stamped, with a late penalty. (Sources: Stamp Act 1949, First Schedule item 49 as amended by the Finance Act 2024; LHDN Stamp Duty Self-Assessment System (STSDS), phase 1 from 1 January 2026; checked 30 Sep 2026.)

Our [rental deposit guide](/resources/rental-deposit-malaysia) covers deposit refunds and deductions in more detail.

## The Tenancy Agreement

Never rent without a signed, written agreement, and make sure it is stamped. Before signing, check that it covers:
*   **Parties and property:** names and IC or passport numbers matching the owner on the title (ask to see a recent bill or the title), and the full address and unit number.
*   **Tenancy Period:** usually 1 or 2 years, with the start date and the rent-free period if any.
*   **Rent and due date:** amount, payment method and the day each month it is due, plus any late-payment charge.
*   **Deposits:** each deposit, what it may be deducted for, and how many days after handover it will be refunded.
*   **Renewal Clause:** whether you have an option to renew, and whether the rent increase is fixed or capped.
*   **Exit Clause:** what happens if you leave early. A diplomatic clause lets expats end the tenancy on transfer, usually after a minimum period and with notice.
*   **Repairs:** who pays for what. Tenants usually cover minor items; landlords usually cover structural defects, roof leaks, wiring and plumbing faults not caused by the tenant.
*   **Inventory List:** every item of furniture and appliance, with its condition. Photograph each one and attach the photos.
*   **Access:** how much notice the landlord gives before visiting or viewing.
*   **Pets, subletting and use:** whether they are allowed, and any strata by-laws you must follow.

For a clause-by-clause walkthrough, read our [tenancy agreement guide](/resources/tenancy-agreement-malaysia).

## Tenant's Rights & Duties

Malaysia still has no dedicated residential tenancy statute. The Residential Tenancy Act has been in drafting at the Housing and Local Government Ministry (KPKT) for years; the Deputy Minister told the Dewan Negara on 4 August 2026 that the Bill was still being finalised, and it has not been passed as of 30 September 2026. Until it is, your rights come from your agreement and general law. (Sources: The Star, 4 August 2026; checked 30 Sep 2026.)

### Rights:
*   **Quiet Enjoyment:** the landlord cannot walk in whenever they like. Agreements normally require notice before entry, except in an emergency.
*   **No lock-outs without a court order:** under section 7(2) of the Specific Relief Act 1950, an owner may recover possession from an occupier only through court proceedings, even after the tenancy ends. Changing the locks, cutting utilities or removing your belongings to force you out is unlawful.
*   **Seizure for unpaid rent only through the court:** a landlord who wants to seize goods for rent arrears must apply to the court for a warrant of distress under the Distress Act 1951; a court bailiff carries it out.
*   **A fair deposit deduction:** a clause forfeiting your deposit is limited to reasonable compensation under section 75 of the Contracts Act 1950, which the Federal Court applied to deposits in *Cubic Electronics v Mars Telecommunications* (2019).
*   **A Habitable Home:** your agreement should oblige the landlord to keep the structure, roof, wiring and plumbing in working order. Report faults in writing so there is a record.

### Duties:
*   **Pay Rent On Time:** usually within the first 7 days of the month; check your agreement.
*   **Minor Repairs:** changing lightbulbs, fuses and tap washers, and fixing damage you or your guests caused.
*   **Utility Bills:** pay electricity, water, sewerage and internet bills on time. Unpaid bills are deducted from your utility deposit.
*   **Use the property as agreed:** no subletting, business use or major alterations without written consent, and follow the building's by-laws.
*   **Give proper notice:** to end or not renew the tenancy, as the agreement specifies.

(Sources: Specific Relief Act 1950, s.7; Distress Act 1951; Contracts Act 1950, s.75; checked 30 Sep 2026.) Our [tenant rights guide](/resources/tenant-rights-malaysia) explains each of these in depth.

## How to Find a Rental

1.  **Determine Budget:** as a rule of thumb, keep rent below about 30% of your take-home pay, and have the 3.5 months' upfront cash ready before you start viewing.
2.  **Explore Locations:**
    *   Working in KL? Try [Sentul](/rent?search=Sentul) or [Wangsa Maju](/rent?search=Wangsa+Maju) for affordability and rail links, or look at neighbouring [Setapak](/area/kuala-lumpur/setapak).
    *   Tech worker? [Cyberjaya](/rent?search=Cyberjaya) is a major hub, and [Puchong](/area/selangor/puchong) is a common alternative with its own LRT line.
3.  **Inspect:** check water pressure, phone signal, noise at night, the condition of the air-conditioners, and the lifts and security in strata buildings.
4.  **Verify the landlord:** make sure the person signing owns the unit or has written authority from the owner. Never transfer a deposit before viewing in person.
5.  **Negotiate before you sign:** rent, repairs to be done before move-in, and who pays stamp duty are all easier to agree before the deposit is paid.

## Moving In Checklist

1.  Walk through the unit with the landlord or agent and note every defect on the inventory list.
2.  Photograph each room, the meter readings and the condition of appliances, with dates.
3.  Collect all keys and access cards, and record how many you received.
4.  Confirm how rent is paid, and keep every receipt or bank transfer record.
5.  Check the stamping certificate is issued within 30 days of signing.

## Moving Out checklist
1.  Give notice as per agreement (usually 1 to 2 months), in writing.
2.  Restore the house to its original condition, excluding fair wear and tear, and service the air-conditioners if the agreement requires it.
3.  Pay all outstanding bills and keep the final statements.
4.  Attend the final inspection, take photographs and meter readings, and get the handover acknowledged in writing.
5.  Return every key and access card, and ask for the deposit refund date in writing.

If the deposit is not refunded when the agreement says, send a written demand. Claims of RM5,000 or less can go to the Magistrates' Court small claims procedure under Order 93 of the Rules of Court 2012, where you file the claim yourself and neither side may use a lawyer. (Source: Rules of Court 2012, Order 93; checked 30 Sep 2026.)

## Common Mistakes Tenants Make

1.  **Paying a deposit before viewing.** Rental scams usually start with a transfer request for a unit you have not seen.
2.  **Not stamping the agreement.** It is cheap, and without it the agreement cannot be relied on in court until it is stamped late with a penalty.
3.  **Skipping the inventory photos.** Without dated evidence, it is your word against the landlord's at move-out.
4.  **Using the security deposit as the last month's rent.** Most agreements do not allow it, and it can put you in breach.
5.  **Leaving early without reading the exit clause.** An early exit usually means forfeiting part or all of the security deposit.

## Frequently Asked Questions

### Q: How much deposit do I need to rent a house in Malaysia?
Usually 2 months' rent as a security deposit, 0.5 month as a utility deposit and 1 month of advance rent, about 3.5 months in total. On a RM2,000 home that is RM7,000, plus RM96 stamp duty on a one-year agreement. No law caps the amount, so it is negotiable.

### Q: Is the rental deposit refundable in Malaysia?
Yes. The security and utility deposits are refundable at the end of the tenancy, less unpaid rent, unpaid bills and the cost of damage beyond fair wear and tear. The advance rent is not a deposit; it pays your first month.

### Q: How much is stamp duty on a tenancy agreement in 2026?
Since 1 January 2025 it is RM1 for every RM250 of annual rent for a tenancy of up to one year, and RM3 per RM250 for a tenancy of more than one and up to three years, with no RM2,400 exemption. A RM2,000-a-month, one-year tenancy pays RM96. Since 1 January 2026 it is paid by self-assessment on LHDN's e-Duti Setem within 30 days of signing.

### Q: Who pays the stamp duty on a tenancy agreement, the landlord or the tenant?
In practice the tenant usually pays, because most agreements say so, but it is a matter for the agreement. Agree it before you sign.

### Q: Can my landlord evict me without a court order?
No. Under section 7(2) of the Specific Relief Act 1950 an owner must go to court to recover possession from an occupier, even after the tenancy has ended. Changing the locks or cutting off utilities to force you out is unlawful.

### Q: Can my landlord keep my deposit if I leave early?
Often yes, if the agreement says so, which most do. But a forfeiture is limited to reasonable compensation under section 75 of the Contracts Act 1950, so a forfeiture that is extravagant compared with the landlord's likely loss can be challenged.

### Q: Is there a Residential Tenancy Act in Malaysia in 2026?
Not yet. The Bill was still being finalised in August 2026 and had not been passed as of 30 September 2026. Tenancies are still governed by your agreement, the Contracts Act 1950, the Specific Relief Act 1950, the Distress Act 1951 and common law.

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