Renting out or renting a home? Here is what a tenancy agreement should include, the deposit norms, and exactly how much stamp duty costs — with a worked example.
General guidance for 2026 — not legal or tax advice. Rates and rules change with each Budget; confirm current figures with LHDN, your state authority or a licensed professional. Just bought? Ask us about renovating →
Malaysia has no dedicated Tenancy Act — tenancies are governed by the contract itself plus common law and the Contracts Act 1950. That makes a clear, written, properly stamped tenancy agreement essential for both landlord and tenant. A stamped agreement is also admissible as evidence in court, while an unstamped one may not be until stamped (and a penalty applies). In practice, the tenancy agreement does the job that a Tenancy Act would do in other countries: it defines rent, deposits, maintenance responsibilities, notice periods and termination rights. The more detailed the agreement, the less room for dispute — and the more likely a landlord or tenant can resolve a disagreement without resorting to legal action.
| Deposit | Typical amount | Purpose |
|---|---|---|
| Security deposit | 2 months’ rent | Cover unpaid rent or damage beyond wear and tear |
| Utility deposit | ½ month’s rent | Cover final utility bills |
| Advance rent | 1 month (first month) | First month’s rental payment |
So a tenant commonly pays around 3½ months’ rent upfront. These are conventions, not law — they are negotiable but should be written into the agreement. See security deposit rules → for deduction and refund rules.
Stamp duty is charged on the annual rent that exceeds RM2,400, at a rate that depends on the term:
| Tenancy term | Duty per RM250 (of annual rent above RM2,400) |
|---|---|
| Up to 1 year | RM1 |
| More than 1 to 3 years | RM2 |
| More than 3 years | RM4 |
Add about RM10 per duplicate copy for stamping.
| Step | Calculation |
|---|---|
| Annual rent | RM1,500 × 12 = RM18,000 |
| Less RM2,400 threshold | RM18,000 − 2,400 = RM15,600 |
| Divide by 250 | 15,600 ÷ 250 = 62.4 → round up to 63 |
| Duty (1-year → RM1 each) | 63 × RM1 = RM63 |
| + copy stamping | ~RM10 |
| Monthly rent | Annual rent | Taxable (above RM2,400) | Stamp duty (1-year term) |
|---|---|---|---|
| RM800 | RM9,600 | RM7,200 | RM29 |
| RM1,500 | RM18,000 | RM15,600 | RM63 |
| RM2,500 | RM30,000 | RM27,600 | RM111 |
| RM4,000 | RM48,000 | RM45,600 | RM183 |
Rounded up to the nearest RM250 unit; add ~RM10 per duplicate copy.
Stamp it within 30 days of signing, via LHDN’s STAMPS portal or at a stamp office (an agent or lawyer can do it for you). An unstamped tenancy agreement can still be valid between parties but may not be admissible in court until stamped (with a penalty). Both parties should keep a stamped copy.
Not currently — a Residential Tenancy Act has been discussed but is not yet in force. Until then, your written agreement is your main protection, so make it detailed and stamp it. In the absence of a dedicated Act, disputes are resolved under common law and the Contracts Act 1950, which is why the agreement terms matter so much. See landlord & tenant rights → for what each side can legally do.
A well-prepared unit rents faster and commands higher rent. See our renovate-to-rent guide → for durable, tenant-ready specs, and deep cleaning → for turnover between tenants.
This guide cites Malaysian legislation and official bodies. Always confirm current rates and rules with the official source:
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