Deposits, monthly bills, repairs and exit costs — every expense a Malaysian tenant needs to plan for, from signing to moving out.
This guide is for general information only and does not constitute legal advice. For specific disputes, consult a licensed Malaysian solicitor or the Tribunal for Consumer Claims. Ask ClickBina on WhatsApp →
The most important starting point: Malaysia does not have a Residential Tenancy Act (RTA) in force as of 2026. The RTA has been debated and drafted for decades but has not been enacted. This means there is no statute that automatically defines which costs a tenant must bear.
Tenant obligations flow from three sources:
| Source | What it governs | Reference |
|---|---|---|
| Tenancy agreement | The primary document — repair obligations, deposit structure, utility responsibility, and cost-sharing are all defined (or omitted) here | Contract under the Contracts Act 1950 (Act 136) |
| Contracts Act 1950 | General law of contract; implied duties; void/unenforceable clauses | Laws of Malaysia, Act 136 |
| Common law | Judicial precedents on landlord’s duty to maintain structure, tenant’s duty of care, quiet enjoyment | Malaysian High Court & Court of Appeal decisions |
The practical implication: read your tenancy agreement before signing. Clauses you agree to are enforceable. If a cost is not addressed in the agreement, it defaults to what is “reasonable” under Malaysian common law.
When you sign a tenancy agreement in Malaysia, you will typically pay the following upfront. These amounts are market convention — not set by statute — and can be negotiated:
| Payment | Standard amount | Purpose | Refundable? |
|---|---|---|---|
| Security deposit | 2 months rent | Covers unpaid rent or damage beyond normal wear and tear at end of tenancy | Yes — less valid deductions |
| Utility deposit | ½ month rent | Covers outstanding electricity, water or other utility bills | Yes — if utilities fully settled |
| Advance rent | 1 month rent | First month’s rent paid in advance at signing | Not a deposit — applied to first month |
| Stamp duty | See below | LHDN stamp duty on the tenancy agreement document itself | No — a government tax |
| Agent commission (if any) | 0.5–1 month rent | Agent fee for sourcing and documenting the tenancy | No |
| Total upfront (no agent) | 3½ months + stamp duty | — | Partial |
For a room rental (separate room within a shared property), the deposit is typically 1 month security + ½ month utility + 1 month advance rent = 2½ months total. Commercial tenancies commonly require a 2–3 month security deposit.
| Tenancy type | Security deposit | Utility deposit | Advance rent | Total upfront |
|---|---|---|---|---|
| Residential unit | 2 months | ½ month | 1 month | 3½ months |
| Room rental | 1 month | ½ month | 1 month | 2½ months |
| Commercial unit | 2–3 months | 0–½ month | 1 month | 3–4½ months |
| Short-term (e.g. serviced apartment) | 1 month or nil | Included in rate | Paid upfront | 1–2 months |
Beyond the monthly rent, a tenant in Malaysia is usually responsible for the following recurring expenses:
Utility responsibility is set by the tenancy agreement. The most common arrangement in the Klang Valley is:
| Utility | Typical arrangement | How billed |
|---|---|---|
| Electricity (TNB) | Tenant pays | Account transferred to tenant’s IC; or landlord reads sub-meter and bills tenant monthly |
| Water | Tenant pays | Account in tenant’s name, or shared account billed to tenant |
| Internet / Unifi | Tenant pays for own plan; furnished units sometimes include | Tenant’s own account |
| Gas | Tenant pays | LPG cylinder replacement; or Petronas reticulated gas account |
| Strata maintenance fee | Landlord (owner) pays | Billed to parcel owner; some agreements pass this cost to tenant — check yours |
| Astro / satellite TV | Tenant pays (if desired) | Tenant’s own subscription |
The most common source of tenancy disputes in Malaysia is who pays for what when something breaks. Malaysia’s common law position (in the absence of specific contract clauses) broadly mirrors the English common law rule:
In practice, most Klang Valley tenancy agreements define repair thresholds explicitly — for example, “repairs up to RM150 are the tenant’s responsibility; above RM150 is the landlord’s.”
| Item | Who pays (typical agreement) | Notes |
|---|---|---|
| Structural repairs (roof, walls, slabs) | Landlord | Owner’s asset; common law duty |
| Major plumbing (main pipe burst, drain blockage in wall) | Landlord | Infrastructure repair |
| Aircon servicing (regular) | Tenant | Routine maintenance; commonly specified in agreement |
| Aircon gas top-up / major repair | Landlord (if provided unit); split if tenant-installed | Depends on agreement — specify in writing |
| Tap, shower head, toilet flush | Tenant (minor repair) | Below typical RM150–RM200 threshold |
| Faulty built-in appliance (fridge, washing machine) | Landlord (if provided with unit) | Landlord’s asset at handover |
| Light bulbs, fuses, minor consumables | Tenant | Considered tenant’s maintenance duty |
| Damage caused by tenant (broken door, cracked tiles) | Tenant | Deductible from security deposit |
| Pest control (routine) | Tenant | Usually tenant’s responsibility unless structural infestation |
| Inter-floor water seepage / ceiling leak from above | Landlord to facilitate; strata management to resolve with upper unit | See strata rules & inter-floor leakage guide |
There is no statutory definition of “minor repair” in Malaysia. The test is what a reasonable person would consider ordinary day-to-day maintenance. Commonly agreed indicators in the Klang Valley residential market include:
If the tenancy agreement is silent, the general principle is that fair wear and tear is not chargeable, but active damage or neglect is. For guidance on what landlords can deduct, see our security deposit rules guide →.
When your tenancy ends, you may face the following costs before getting your deposit back:
Under the Stamp Duty Act 1949, every tenancy agreement must be stamped with LHDN (Inland Revenue Board). An unstamped agreement is generally inadmissible as evidence in legal proceedings, weakening your position in any dispute.
| Annual rent (RM) | Stamp duty rate | Example: RM2,000/month (1-year) |
|---|---|---|
| First RM2,400 of annual rent | Nil | Nil on first RM2,400 |
| Excess above RM2,400 | RM1 per RM250 | Annual rent RM24,000 − RM2,400 = RM21,600 ÷ RM250 = RM87 stamp duty |
| Duplicate/counterpart copy | RM10 flat | Per duplicate |
In practice for a RM2,000/month, 1-year tenancy, stamp duty is around RM87–RM100. Stamp duty is typically paid by the tenant by convention (though it is negotiable). Always stamp within 30 days of execution to avoid a penalty surcharge.
For template help, see our free tenancy agreement template →. For landlord-side costs, read our landlord rights guide →. If you are preparing a unit for letting, see how to prepare a unit for rent →.
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