Tenancy Agreement Malaysia 2026: Template, Stamp Duty & Tenant Rights
Renting a property in Malaysia starts with one document: the tenancy agreement. Whether you are a first-time tenant searching for a room in KL or a landlord leasing out a condominium, understanding every clause in this contract protects your money, your rights, and your peace of mind. This guide walks you through everything you need to know about tenancy agreements in Malaysia for 2026 -- from standard clauses and stamp duty calculations to a ready-to-use checklist and template.
Tenancy Agreement in Malaysia: Quick Facts
- What it is: a written contract between landlord and tenant covering rent, duration, deposits, repairs and termination. Rentals of up to 3 years are tenancies; longer terms are leases that must be registered on the land title.
- Deposits: usually "2+1": 2 months' rent as security deposit plus a utility deposit of 0.5 to 1 month's rent, with 1 month's rent often paid upfront as an earnest deposit and applied to the first month.
- Stamp duty: for every RM250 (or part of RM250) of annual rent, RM1 for tenancies of up to 1 year, RM3 for over 1 to 3 years, RM5 for over 3 to 5 years and RM7 for over 5 years. Since 1 January 2025 (Finance Act 2024) the old RM2,400 exemption no longer applies, so the full annual rent counts.
- Deadline: self-assess and pay the duty through e-Duti Setem on LHDN's MyTax portal within 30 days of signing, or pay a late penalty.
- Why stamping matters: an unstamped agreement cannot be used as evidence in court until it is stamped, which leaves both sides exposed in a deposit or damage dispute.
- Who pays: by convention the tenant pays the stamp duty and admin fees, but this is negotiable.
What Is a Tenancy Agreement in Malaysia?
A tenancy agreement (sometimes called a rental agreement or surat perjanjian sewa) is a legally binding contract between a landlord and a tenant. It sets out the rental amount, duration, deposit terms, obligations of each party, and the conditions under which the tenancy may be terminated.
In Malaysia, a tenancy agreement typically covers a period of up to three years. If the rental period exceeds three years, the arrangement is classified as a lease and must be registered under the National Land Code 1965. Leases involve additional legal formalities, higher registration fees, and are recorded on the land title itself. Most residential rentals in Malaysia are structured as tenancies precisely to avoid this added complexity.
Here is the critical point: an unstamped tenancy agreement is still a valid contract, but it cannot be admitted as evidence in a Malaysian court until it has been stamped with LHDN (Lembaga Hasil Dalam Negeri, the Inland Revenue Board) and any late penalty paid (Stamp Act 1949, s.52). This means that if a dispute arises -- over deposits, damages, or early termination -- neither party can rely on an unstamped document in court until it is stamped, late penalty included. Stamping is not optional; it is essential.
Standard Clauses in a Malaysian Tenancy Agreement
A well-drafted tenancy agreement should cover the following clauses at a minimum. If any of these are missing from your agreement, raise them before you sign.
Rental Amount and Payment Terms
The agreement must state the exact monthly rental amount, the due date each month, and the accepted payment methods (bank transfer, JomPAY, cheque). It should also specify any penalties for late payment, typically a percentage of the monthly rent.
Duration and Commencement Date
Most tenancy agreements run for one or two years. The start date, end date, and any lock-in period should be clearly stated. A lock-in period means neither party can terminate the agreement during that window without paying a penalty.
Deposit Terms
The standard deposit structure in Malaysia is known as "2+1":
- Security deposit: 2 months' rent, refundable at the end of the tenancy minus any deductions for damage beyond normal wear and tear.
- Utility deposit: 0.5 to 1 month's rent, held against unpaid water, electricity, or internet bills.
- Earnest deposit: 1 month's rent paid upfront to secure the unit, which is then applied as the first month's rent.
For a deeper look at deposit rules and refund timelines, see our guide on rental deposits in Malaysia.
Maintenance and Repair Responsibilities
The agreement should clearly divide maintenance duties. Structural issues (roof leaks, piping, load-bearing walls) are typically the landlord's responsibility. Day-to-day upkeep (lightbulbs, minor fixtures, cleaning) falls to the tenant. For appliances provided by the landlord, the agreement should specify who pays for repairs and replacement.
Termination Clause
This clause outlines what happens if either party wishes to end the tenancy early. The most common arrangement is that the tenant forfeits the security deposit for early termination, while the landlord must compensate the tenant (often two months' rent) if the landlord terminates without cause.
Renewal Clause
A renewal clause allows the tenant to extend the tenancy for an additional term, usually at a pre-agreed rental rate or at the prevailing market rate. The notice period for renewal (typically two to three months before expiry) should be stated.
Diplomatic Clause
If you are an expatriate or your job involves potential relocation, insist on a diplomatic clause. This allows you to terminate the tenancy early -- usually with two to three months' written notice -- if you are transferred out of Malaysia or your employment is terminated. Without this clause, you may be liable for the full remaining rental even if you leave the country.
Stamp Duty on Tenancy Agreement 2026
Stamp duty is the government tax that makes your tenancy agreement legal. The rate depends on the duration of the tenancy.
Rates changed on 1 January 2025: under the Finance Act 2024, the RM2,400 annual rental exemption that used to apply to tenancy agreements was removed and the rates were raised for tenancies longer than 1 year. The full annual rent is now subject to stamp duty.
| Tenancy Duration | Stamp Duty Rate |
|---|---|
| Up to 1 year | RM1 for every RM250 (or part) of annual rent |
| Over 1 year, up to 3 years | RM3 for every RM250 (or part) of annual rent |
| Over 3 years, up to 5 years | RM5 for every RM250 (or part) of annual rent (lease) |
| Over 5 years | RM7 for every RM250 (or part) of annual rent (lease) |
The stamp duty is calculated on the total annual rental. Any part of an RM250 unit counts as a full unit, so divide the annual rent by RM250 and round up before applying the rate.
For a comprehensive breakdown of stamp duty rates across all property transactions, read our guide on stamp duty in Malaysia 2026.
Tenancy Agreement Stamp Duty Calculator
Let us work through two common scenarios step by step so you can calculate stamp duty for your own tenancy.
Example 1: RM1,700/month for 1 year
- Annual rent = RM1,700 x 12 = RM20,400
- Number of RM250 units = RM20,400 / RM250 = 81.6
- Round up to 82 units
- Stamp duty = 82 x RM1 = RM82
Example 2: RM2,500/month for 2 years
- Annual rent = RM2,500 x 12 = RM30,000
- Number of RM250 units = RM30,000 / RM250 = 120
- Stamp duty = 120 x RM3 = RM360
Note that for tenancies of more than 1 year and up to 3 years, the rate triples to RM3 per RM250 unit. On the same rent, a two-year agreement costs three times as much to stamp as a one-year agreement, so factor it into your budget.
Administration Fees and Legal Fees for Tenancy
Beyond stamp duty, you will encounter administration and legal fees when finalizing your tenancy agreement.
Administration Fees
If you use a property agent or a lawyer to draft the tenancy agreement, expect an administration fee. While there is no fixed statutory rate, the market practice is:
| Monthly Rent | Typical Admin Fee |
|---|---|
| Below RM2,000 | RM300 -- RM500 |
| RM2,000 -- RM4,000 | RM400 -- RM700 |
| Above RM4,000 | RM500 -- RM1,000 |
These fees cover drafting, printing, and coordination with the stamping authority.
Legal Fees
For a standard tenancy agreement (under 3 years), legal fees are relatively modest because the agreement does not need to be registered on the land title. However, if you opt for a lease exceeding 3 years, legal fees increase substantially because a lawyer must register the lease with the land office. Registration fees, adjudication fees, and solicitor charges can add up to several thousand ringgit depending on the annual rental value.
Who Pays These Fees?
By convention in Malaysia, the tenant pays for the stamp duty and the administration or legal fees for drafting the agreement. However, this is negotiable. In a tenant-friendly market or for higher-value properties, landlords sometimes agree to share or absorb these costs. Always clarify who pays what before signing.
Tenant vs Landlord Obligations Under the Agreement
One of the most common sources of disputes is confusion over who is responsible for what. A good tenancy agreement spells this out clearly. Here is the standard division of obligations:
| Obligation | Landlord | Tenant |
|---|---|---|
| Monthly rent | -- | Pays on the agreed date |
| Security deposit | Refunds at end of tenancy | Pays at signing |
| Assessment tax (cukai pintu) | Pays | -- |
| Quit rent (cukai tanah) | Pays | -- |
| Fire insurance (building) | Pays | -- |
| Contents insurance | -- | Optional, recommended |
| Structural repairs (roof, walls, plumbing) | Pays | Reports promptly |
| Minor repairs (lightbulbs, fuses) | -- | Pays |
| Appliance repairs (if provided) | Pays (unless tenant negligence) | Reports promptly |
| Utility bills (water, electricity, internet) | -- | Pays |
| Condo maintenance fees | Pays (usually) | Check agreement |
| Sinking fund | Pays | -- |
Common disputes and how to avoid them:
- Air-conditioning servicing: Specify in the agreement who pays for regular servicing (usually the tenant) versus compressor replacement (usually the landlord).
- Painting upon move-out: Unless stated in the agreement, the landlord cannot deduct from the deposit for repainting due to normal wear and tear.
- Pest control: Clarify responsibility upfront, especially for furnished units.
For more on what your landlord can and cannot do, see our guide on tenant rights in Malaysia.
How to Get Your Tenancy Agreement Stamped (e-Duti Setem on MyTax)
Stamping is fully online, and since 1 January 2026 it works on self-assessment: you (or your agent or lawyer) work out the duty yourself, declare it and pay it, rather than waiting for LHDN to assess it. The old STAMPS portal closed on 31 December 2025; tenancy agreements are now stamped through e-Duti Setem on LHDN's MyTax portal. Here is how:
Step 1: Prepare the Agreement
Ensure the tenancy agreement is signed by both parties and witnessed. Keep a scanned copy of the signed agreement ready to upload.
Step 2: Log In to MyTax
Go to MyTax (mytax.hasil.gov.my) and log in with your own MyTax account, then open e-Duti Setem. Agents and law firms that stamp on your behalf use their own MyTax access.
Step 3: Enter the Agreement Details and Self-Assess the Duty
Choose the tenancy/lease agreement instrument type and fill in the parties, property address, monthly rent and tenancy period. Work out the duty using the rates above (annual rent / RM250, rounded up, x the rate for your tenancy length) and check that it matches the amount you declare. Under self-assessment you are responsible for declaring the correct amount, and LHDN can audit the declaration and charge the shortfall plus a penalty if the duty was under-declared.
Step 4: Pay the Stamp Duty
Pay online, for example via FPX. Once the payment goes through, the system issues a stamp certificate with a unique reference number.
Step 5: Attach the Certificate
Download the stamp certificate and attach it to the original tenancy agreement, with a copy to each party. This is your proof that the agreement is stamped.
The 30-Day Deadline
You must stamp the tenancy agreement within 30 days of signing. If you miss this deadline, a late-stamping penalty applies under section 47A of the Stamp Act 1949:
- Up to 3 months late: RM50 or 10% of the deficient duty, whichever is greater
- More than 3 months late: RM100 or 20% of the deficient duty, whichever is greater
Do not delay. Get it stamped as soon as both parties have signed.
Tenancy Agreement Template: What to Include
Whether you are using a professional lawyer or drafting the agreement yourself, here is a comprehensive checklist of clauses your tenancy agreement should contain:
Essential Clauses Checklist
- Full names, IC/passport numbers, and contact details of landlord and tenant
- Property address, including unit number, floor, and building name
- Monthly rental amount and due date
- Payment method (bank transfer details, JomPAY biller code)
- Tenancy duration with start and end dates
- Lock-in period (if any)
- Security deposit amount and refund conditions
- Utility deposit amount
- Earnest deposit amount and how it is applied
- Landlord obligations (structural maintenance, insurance, taxes)
- Tenant obligations (rent, utilities, minor repairs)
- Inventory list of furniture, fittings, and appliances (with condition noted)
- Termination clause with notice period and penalties
- Renewal clause with notice period and rental adjustment terms
- Diplomatic clause (for expatriates)
- Permitted use of the property (residential only, no subletting, etc.)
- Access rights (landlord must give notice before visiting)
- Governing law and dispute resolution mechanism
- Signatures of both parties and a witness
Professional Drafting vs DIY
Using a standard template you find online can save money, but it carries risks. Generic templates may not account for Malaysian-specific requirements, may omit important clauses, or may include terms that are unenforceable under Malaysian law. If your monthly rent is above RM2,000 or the property is furnished with high-value items, investing RM300 to RM700 in professional drafting is worthwhile. A lawyer or licensed estate agent can tailor the agreement to your specific situation and ensure compliance with current regulations.
Tip: Regardless of who drafts the agreement, always conduct a joint inspection of the property before signing. Take dated photographs of every room, every appliance, and any existing defects. Attach this inventory list as a schedule to the tenancy agreement. This single step prevents the vast majority of deposit disputes at the end of the tenancy.
FAQs About Tenancy Agreements in Malaysia
Q: Who pays the stamp duty on a tenancy agreement in Malaysia?
By market convention, the tenant pays the stamp duty and administration fees for the tenancy agreement. However, this is not a legal requirement -- it is simply standard practice. In negotiations, especially for higher-end properties or in a market with many vacancies, the landlord may agree to share or cover these costs. Always discuss and agree on this before signing.
Q: Is an unstamped tenancy agreement valid in Malaysia?
Yes. An unstamped tenancy agreement is still a valid contract between the parties, but it cannot be admitted as evidence in a Malaysian court until it is stamped. This means that if a dispute arises over deposits, damages, or early termination, neither the landlord nor the tenant can rely on the unstamped agreement to support their case. Until it is stamped, it gives you little practical protection. You can still get it stamped after the fact, but you will need to pay the late penalty to LHDN.
Q: Can I modify a standard tenancy agreement template?
Yes, you can modify a template to suit your needs. Both parties must agree to any changes, and all modifications should be clearly written into the agreement before signing. Common modifications include adding a diplomatic clause, adjusting the deposit structure, specifying air-conditioning maintenance responsibilities, or including a break clause with a defined penalty. Avoid verbal side agreements -- if it is not written in the signed document, it is very difficult to enforce.
Q: What can I do if my landlord does not return my deposit?
Start by writing a formal demand letter to your landlord, referencing the specific clauses in your tenancy agreement regarding deposit refund. Give a reasonable deadline (14 to 30 days). If the landlord does not respond or refuses without valid justification, you can file a claim in the Magistrate's Court for amounts up to RM100,000. Having a stamped tenancy agreement and a documented inventory list with photographs taken at move-in and move-out will significantly strengthen your case. Read more in our guide on rental deposits in Malaysia.
Q: What happens if I terminate my tenancy early?
Early termination terms depend entirely on what is written in your tenancy agreement. The most common arrangement is that the tenant forfeits the security deposit (typically two months' rent) if they leave before the agreed end date. Some agreements impose an additional penalty, such as one month's rent on top of the forfeited deposit. If you have a diplomatic clause and qualify under its conditions (job transfer, employment termination), you can typically exit with two to three months' notice and without forfeiting your deposit. Always check the specific wording in your agreement before making a decision. For more on your rights, see our guide on tenant rights in Malaysia.
Find Your Next Rental on SuperHomes
A strong tenancy agreement starts with finding the right property. Browse rental listings across Malaysia on SuperHomes:
- Search rentals in Kuala Lumpur
- Search rentals in Mont Kiara
- Search rentals in Bangsar
- Search rentals in Cyberjaya
Have questions about renting? Explore our other renting guides:
- Stamp Duty Malaysia 2026: Complete Guide
- Tenant Rights Malaysia: What Your Landlord Cannot Do
- Rental Deposit Malaysia: Rules, Amount & Refund Guide
