Tenancy Agreement Malaysia: Complete Guide for Landlords & Tenants (2026)

A Tenancy Agreement is a legally binding contract between a landlord and a tenant. It defines the duties, responsibilities, and rights of both parties.

While you can write one yourself, it's safer to have it drafted by a professional or use a standard standard template.

What Should Be In The Agreement?

1. Details of Property & Parties

• Full names and IC/Passport numbers of Landlord and Tenant.
• The exact address of the property (including unit number).

2. Tenancy Period & Renewal

• Duration: Typically 1 or 2 years.
• Renewal Option: Usually allows the tenant to renew for another year at a pre-agreed rental rate (or market rate).

3. Deposits

• Security Deposit: Usually 2 months' rent. Refundable at the end of the tenancy (minus damages).
• Utility Deposit: Usually 0.5 or 1 month's rent. For unpaid water/electricity bills.
• Earnest Deposit: 1 month's rent paid to book the unit (becomes the first month's rent).

4. Obligations

• Landlord: Pay assessment tax, quit rent, and insurance. Maintain structure (roof, piping).
• Tenant: Pay rent on time, pay utilities, take care of furniture, and do minor repairs (e.g., changing lightbulbs).

5. Termination Clause

• What happens if the tenant leaves early? (Usually, the deposit is forfeited).
• What happens if the landlord sells the house? (The tenancy usually continues with the new owner, or the landlord pays compensation).

Stamp Duty Calculation (2026)

A tenancy agreement is only legal if stamped by LHDN (Lembaga Hasil Dalam Negeri).

The Formula:

• Rental > RM2,400/year: (Yearly Rent - RM2,400) / 250 * RM1 (for 1 year) or RM2 (for 1-3 years).

Example: RM2,000 monthly rent (RM24,000 / year) for 1 year

1. Taxable rental = RM24,000 - RM2,400 = RM21,600
2. Stamp Duty = RM21,600 / 250 * RM1 = RM87 (rounded up).

Who Pays Legal Fees?

Usually, the Tenant pays for the Stamp Duty and the administration fees for drafting the agreement.

Checklist Before Signing

1. Inventory List: Take photos of all furniture and defects before moving in.
2. Diplomatic Clause: If you are an expat, ensure this clause exists so you can break the lease if you are transferred out of Malaysia.
3. Payment Mode: Agree on whether it's bank transfer or JomPAY.

Find Your Next Rental

Safe rentals start with good research. Check out popular rental hotspots:

• Mont Kiara
• Bangsar
• Cyberjaya