Utility Bill Transfer Landlord-Tenant Guide Malaysia 2026
To move the electricity bill into your tenant's name, the tenant applies to TNB for a Change of Tenancy, which opens a new account in their name. In 2026 they pay a security deposit of two months' estimated usage, RM10 stamp duty and a RM3 processing fee for a normal home. Water and sewerage usually stay in the owner's name, so most landlords also collect a utility deposit of half to one month's rent to cover those bills.
One of the most common headaches for residential landlords in Malaysia is a tenant who moves out leaving unpaid electricity, water and sewerage bills (in Malay, bil utiliti). Whoever holds the utility account is the one the provider bills. If the Tenaga Nasional Berhad (TNB) account stays in your name, TNB looks to you for the arrears, even if the tenant used all the electricity. TNB's own FAQ notes that some owners are "left with hefty bills after their tenants have moved out". (Source: TNB FAQ, owner and tenant issues; checked 1 Oct 2026.)
To limit that risk, property owners can have the tenant take over the TNB account through a Change of Tenancy (Tukar Nama Meter) when the tenancy starts.
This 2026 guide explains how to transfer TNB, water and Indah Water accounts, how the TNB deposit works, and how to handle utility deposits and final bills when a tenant leaves.
At a Glance: Utility Provider Account Transfer Matrix
| Utility Provider | Account Transfer Method | Deposit | Landlord Debt Protection Level |
|---|---|---|---|
| Tenaga Nasional Berhad (TNB) | Change of Tenancy (COT): the incoming tenant opens a new account online or at a Kedai Tenaga | 2 months' estimated electricity usage, paid by the account holder, plus RM10 stamp duty and a RM3 processing fee (low voltage) | Strong (the account and its arrears become the tenant's, but you lose the right to ask TNB to disconnect if the tenant defaults) |
| Water (Air Selangor, Ranhill SAJ and other state operators) | Owner usually keeps the account; operators run change-of-account-holder services | Operator's water deposit if the account moves; otherwise covered by your utility deposit | Partial (deduct from the utility deposit) |
| Indah Water (IWK sewerage) | Most owners keep the account in their own name | None; flat monthly domestic charge, RM15.32 for most connected homes in 2026 | Recover through the rent or the utility deposit |
(Sources: myTNB, Change of Tenancy and Security Deposit pages; Indah Water, domestic charges 2026; Ranhill SAJ services page; checked 1 Oct 2026.)
1. How to Execute a TNB Change of Tenancy (COT) via myTNB
TNB describes a Change of Tenancy as "the opening of a new account by a customer who moves into an existing premise". Once it is done, the electricity account and monthly bill are registered under the tenant's own identity document, and the tenant is responsible for the account.
Step-by-Step COT Procedure
- The tenant applies. The incoming tenant applies online through myTNB or at the nearest Kedai Tenaga. Agree in the tenancy agreement that they will do this before moving in.
- Documents. TNB asks for a completed and signed application form, a copy of the applicant's MyKad (or Army ID, Police ID or passport) marked "For TNB Purpose Only", and a declaration form. Check myTNB for the current list before applying, as TNB may ask for proof of occupancy such as the tenancy agreement.
- Deposit and fees. The tenant pays a security deposit of two months' estimated electricity usage, RM10 stamp duty, and a processing fee of RM3 for low-voltage (normal residential) supply.
- Disconnection rights. After a COT, TNB bills and chases the tenant as the account holder. TNB's FAQ warns that a Change of Tenancy "also means that you will lose the right to disconnect if the tenant defaults", so you cannot ask TNB to cut the supply to force payment.
(Source: myTNB, Change of Tenancy; TNB FAQ, owner and tenant issues; checked 1 Oct 2026.)
How the TNB security deposit works
TNB may collect a deposit of two months of estimated usage under the Electricity Supply Act, based on an average of six months of the premises' consumption. There is no fixed ringgit amount for a home. Cash deposits earn 2.5% simple interest a year, credited to the account, and TNB refunds any excess deposit on request if actual usage turns out lower. When the account is closed, the deposit is refunded after deducting any outstanding bill. (Source: myTNB, Security Deposit; checked 1 Oct 2026.)
If you prefer to keep the account in your name, TNB suggests a second option: register the premises on myTNB so you can monitor your tenant's monthly usage and payments, and act early if bills go unpaid.
2. Managing Water & Sewerage Bills (Air Selangor & IWK)
- Water accounts: Many landlords keep the water account in their own name. Air Selangor runs a Change of Ownership service and Ranhill SAJ in Johor offers a Change of Account Name service. Their document lists and deposit amounts change and are not all published in the same place, so check the operator's current requirements before relying on a transfer. If the account stays in your name, collect a utility deposit (commonly half to one month's rent, e.g. RM1,000 on a RM2,000 rental at half a month) to cover unpaid water bills. Our rental deposit guide explains how that deposit fits alongside the security deposit. (Sources: Air Selangor, Change of Ownership service page; Ranhill SAJ services page; checked 1 Oct 2026.)
- Indah Water Konsortium (IWK): Homes connected to a central sewerage system pay a flat monthly charge. For 2026 it is RM15.32 per month for premises in categories A to E, which covers most houses and strata units, RM4.09 for low-cost homes and RM5.12 for village and estate homes. IWK absorbs a small rebate of RM0.09 to RM0.32 a month. Many landlords simply build the IWK charge into the monthly rent. (Source: Indah Water, domestic charges for connected systems, 2026; checked 1 Oct 2026.)
If you rent out rooms and recover electricity through sub-meters, see our guide to landlord sub-meter installation and billing.
3. Reverting Utility Accounts Upon Lease Expiry
When a tenant vacates at the end of their lease:
- Perform Final Meter Reading: Take timestamped photos of the TNB electric meter and the water meter on key handover day.
- Close or change the TNB account: The outgoing tenant closes their account, and the next occupier (you or the incoming tenant) opens one through a new Change of Tenancy. The tenant's TNB deposit is refunded to them after TNB deducts any outstanding bill.
- Deduct Arrears from Utility Deposit: Work out the final water, sewerage and any other bills still in your name, deduct them, and refund the rest of the utility deposit to the outgoing tenant once the final bills arrive. That is usually within 30 days, or whatever period the tenancy agreement sets.
Frequently Asked Questions (FAQ)
Q: What happens if a tenant vacates without paying a RM3,000 TNB bill under a Change of Tenancy?
If a COT was done, the RM3,000 debt sits on the tenant's account, not yours. TNB deducts it from the tenant's security deposit when the account is closed and pursues the tenant for the balance. Before a new tenant moves in, confirm with TNB that the old account has been closed and how the next account at the premises will be opened.
Q: How much is the TNB security deposit for a residential apartment?
TNB sets the security deposit at two months of estimated electricity usage, based on an average of six months' consumption, so there is no fixed RM amount; it depends on the unit's expected usage. A tenant opening an account through a Change of Tenancy also pays RM10 stamp duty and a RM3 processing fee for low-voltage supply. Cash deposits earn 2.5% interest a year.
Q: How do I transfer the TNB account to my tenant?
Ask the tenant to apply for a Change of Tenancy online through myTNB or at a Kedai Tenaga before they move in. They submit the application form, a copy of their MyKad or passport marked "For TNB Purpose Only" and a declaration form, and pay the deposit and fees. The new account is then in their name, and they are responsible for the bills.
Q: Is there a TNB landlord-tenant scheme?
TNB's FAQ for owners offers two options rather than a separate scheme: do a Change of Tenancy so the tenant is fully responsible for the account, or keep the account in your name and register on myTNB to monitor your tenant's monthly usage and payments. If you choose the Change of Tenancy, you lose the right to ask TNB to disconnect the supply when the tenant defaults.
Q: What is a utility deposit and how much should I collect?
A utility deposit is a sum the tenant pays the landlord at the start of the tenancy to cover utility bills that stay in the landlord's name, such as water and sewerage, and any unpaid electricity if there is no Change of Tenancy. It is commonly half to one month's rent. It is separate from the security deposit and from the deposit TNB or the water operator collects from an account holder.
Q: Should a landlord keep utility bills in their name if they rent out room-by-room?
Yes, usually. For co-living room rentals with sub-meters, the landlord keeps the master TNB account and bills each tenant for their sub-meter usage, because the whole unit usually runs on a single TNB meter. Set the sub-meter rate and billing method out in each room tenancy agreement.
Q: Who pays the Indah Water (IWK) bill, the landlord or the tenant?
That is for the tenancy agreement to decide. Most landlords keep the IWK account in their own name and either build the flat RM15.32 monthly charge into the rent or recover it from the tenant. If the agreement says the tenant pays, any unpaid IWK charges can be deducted from the utility deposit at the end of the tenancy.
Q: When should the outgoing tenant get the utility deposit back?
Once the final bills for the tenancy period have arrived and been paid, the landlord should refund the utility deposit less any unpaid bills, usually within 30 days of move-out or within the period the tenancy agreement sets. Take dated photos of the meters on handover day so both sides agree on the final readings.
Sources
- TNB Change of Tenancy (documents, deposit, RM10 stamp duty, RM3 processing fee): myTNB, Change of Tenancy page.
- TNB security deposit (two months' estimated usage, six-month average, 2.5% interest, refunds): myTNB, Security Deposit page.
- Owner and tenant options, loss of the right to disconnect: TNB FAQ, owner and tenant issues.
- IWK domestic charges for 2026: Indah Water, domestic charges (connected system).
- Water account changes: Air Selangor, Change of Ownership service; Ranhill SAJ, Change of Account Name service.
Checked 1 Oct 2026.
Related Resources
- Tenancy Contracts: Read our Tenancy Agreement Malaysia guide.
- Deposits: See Rental Deposit Malaysia.
- Eviction Rules: Explore How to Evict Tenant Malaysia.
- Landlord Rights: Learn about Landlord Rights Malaysia.
- Find a tenant-ready home: Browse homes for rent in Selangor.
