Perjanjian Sewa Rumah in Malaysia: What a Residential Tenancy Agreement Should Cover

A perjanjian sewa rumah is a residential tenancy agreement: the written contract between a house owner (the landlord) and the tenant that sets out the rent, deposits, length of the tenancy, who is responsible for what, and how the tenancy can end. In Malaysia there is no dedicated residential tenancy statute in force yet, so the agreement itself does most of the work of protecting you. A good residential tenancy agreement in Malaysia should clearly cover the parties and property, rent and payment terms, deposits, use of the property, term and renewal, repairs and maintenance, utilities, stamp duty, default and termination, and an inventory, and it should be stamped with LHDN (the Inland Revenue Board) within the time allowed.

This guide explains the laws that apply, what makes a tenancy agreement valid, the documents you need, the key clauses, the costs involved (including the current stamp duty rates) and the steps from booking to handover. It is written for both landlords and tenants.

Is there a tenancy law in Malaysia?

Not a single one. The government has proposed a residential tenancy act, but at the time of writing, residential tenancies are still governed by general laws:

• National Land Code 1965: a registered proprietor may let land, including a house. A tenancy of up to three years does not need to be registered at the land office. A letting for longer than three years is a lease, which must be created and registered under the National Land Code. If you are looking at a registered lease rather than an ordinary house rental, see our guide to the lease agreement in Malaysia.

• Contracts Act 1950: a tenancy agreement is a contract, and neither side can simply walk away from it at will. Rights on breach and termination depend mainly on its terms.

• Specific Relief Act 1950: once a tenancy has ended, a landlord cannot recover possession from a tenant who stays on except through court proceedings. Changing the locks or cutting off utilities is not a lawful shortcut.

• Distress Act 1951: provides a court-based route for a landlord to recover rent arrears by seizing the tenant's movable property, subject to the conditions and exemptions in the Act.

• Stamp Act 1949: a tenancy agreement is an instrument that attracts stamp duty.

• Solicitors' Remuneration Order 2023 (SRO 2023): if a lawyer prepares the agreement in Peninsular Malaysia, the legal fee follows the scale under this Order.

One more point on property that is charged to a bank: check your loan or financing documents. If the charge restricts letting without the bank's consent, the owner should obtain that consent before renting the house out.

What makes a tenancy agreement valid?

The landlord must have the right to let

The person letting the property must be its owner or be properly authorised by the owner. A tenant should ask to see proof of ownership before paying anything.

Both parties must have capacity to contract

Each party should be at least 18 years old, of sound mind and not bankrupt. Where the landlord or tenant is a company, there should be a board resolution approving the tenancy and naming the person authorised to sign on the company's behalf.

The agreement should be stamped

Stamping is not what makes the contract binding, but it matters a great deal in practice. According to LHDN's guidance, an instrument that is chargeable with duty but not duly stamped cannot be admitted as evidence in court. If there is ever a dispute over unpaid rent, damage or eviction, an unstamped agreement has to be stamped (with any late penalty) before it can be relied on.

Documents to prepare before drafting

• Title or sale documents: a copy of the land title in the owner's name. If the individual or strata title has not been issued yet, the sale and purchase agreement (SPA) or deed of assignment shows the owner's interest.

• Land search: an official or private search at the land office or land registry confirms the registered owner and shows any caveat, charge or restriction in interest. See our land title guide for what the title and search tell you.

• Latest assessment rate receipt: shows the owner has paid the local council.

• Latest quit rent receipt: shows the owner has paid the state's land tax.

• Strata by-laws or house rules: for condominiums and apartments, the tenant should receive a copy so they know the rules they must follow.

• Identification: copies of both parties' IC or passport, and company documents where a company is involved.

Who signs and how

The landlord and the tenant both sign the agreement. It is good practice to have each signature witnessed, with the witness's name, IC number and contact details recorded, so that the witness can be called if the existence or terms of the agreement are later disputed. Each party should also initial every page, and read every clause before signing.

For strata properties, let the joint management body (JMB) or management corporation (MC) know about the new tenant, so access cards, parking and house rules can be dealt with smoothly.

Key terms a residential tenancy agreement should cover

Rent and payment

The rent is the price for the right to occupy the property. The landlord sets it and the tenant is free to accept or negotiate. Once both parties sign, the agreed rent binds them. Spell out the payment method (online transfer, cheque or cash), the due date and any late-payment consequence. Unclear payment terms are a common source of disputes that end with the tenancy being terminated.

Deposits

Three kinds of deposit are common:

• Earnest or booking deposit: paid by a prospective tenant so that the landlord does not let the property to someone else. The agreement or booking form should say whether it is forfeited if the tenant does not proceed, and how it is applied once the tenancy agreement is signed.

• Security deposit: held by the landlord against unpaid rent and, if the agreement allows, the cost of repairing damage beyond fair wear and tear. If the landlord uses it during the tenancy, the tenant is usually required to top it up.

• Utility deposit: covers unpaid electricity, water, sewerage or internet bills. If the utility accounts are in the tenant's own name, a utility deposit may not be needed.

Purpose of the tenancy

State that the property is for residential use. This lets the landlord control how the house is used, which matters because local council rules may prohibit certain uses (for example running a business from a residential unit), and the owner may be the one who faces enforcement action.

Term and renewal

The term sets how long the tenancy lasts and also which law applies: an ordinary tenancy does not exceed three years, while anything longer is a lease that must be registered under the National Land Code. The renewal clause should say whether renewal is automatic or requires notice, how much notice, and how the new rent is decided.

Responsibilities and prohibitions

Set out who is responsible for minor repairs, structural repairs and damage caused by the tenant. Prohibitions are just as important: the landlord should not enter or unlock the property without giving notice, and the tenant should not make additions or alterations without the landlord's written consent.

Maintenance, taxes and utilities

Occupying a home has running costs: repairs, air-conditioner servicing, strata maintenance charges and so on. Assessment rates and quit rent are usually paid by the owner, though some agreements pass certain costs to the tenant. Agree whether utility accounts stay in the owner's name or are transferred to the tenant.

Liability

Who is responsible if someone is injured at the property, or if there is a fire? Agreeing this upfront, together with who insures what, matters if a claim is made by an injured person or an insurer.

Default and termination

The default clause sets out what counts as a breach and how it can be remedied. The termination clause explains when and how either party can end the agreement, and what happens on termination: handing back vacant possession, settling arrears and dealing with damage. If a tenancy breaks down, a landlord still has to follow the legal process; see our guide on how to evict a tenant legally in Malaysia.

Inventory

An inventory schedule records the furniture and fittings in the property and their condition when the tenant moves in. Signed photographs or a video walkthrough make the inventory much more useful when the deposit is being refunded.

Diplomatic clause for foreign tenants

Tenancies of 12 months or more with foreign tenants often include a diplomatic clause. It allows the tenant to end the tenancy early, on notice and on the conditions stated, if they must leave Malaysia before the term ends, without paying rent for the rest of the term.

How much does a tenancy agreement cost?

There are two main costs.

Legal fees

If a lawyer prepares the agreement in Peninsular Malaysia, the fee is governed by the Solicitors' Remuneration Order 2023, which sets a scale based on the rent. SST of 8% applies to legal fees. The parties agree who bears the legal cost; in practice it is often the landlord. Ask for a written quotation that shows the fee, SST and disbursements separately.

Stamp duty

Stamp duty on a tenancy agreement is charged under the Stamp Act 1949 on the annual rent, at a rate that depends on the length of the tenancy. Under LHDN's current stamp duty guideline (First Schedule, updated 30 June 2026):

The current guideline does not provide the old exemption for the first RM2,400 of annual rent, so duty is calculated on the whole annual rent.

Example: rent of RM2,000 a month gives an annual rent of RM24,000, which is 96 units of RM250.

• For a 1-year tenancy: 96 × RM1 = RM96.

• For a 2-year tenancy: 96 × RM3 = RM288.

Under the Stamp Act, the party liable to pay duty on a tenancy is the tenant (lessee), although the agreement can say who ultimately bears the cost. Stamping is done online through LHDN's STAMPS system (e-Duti Setem), where tenancy agreements are submitted through a self-assessment stamp duty return. Stamp the agreement within 30 days of signing to avoid late-stamping penalties.

Other documents that come with the agreement

• Booking form or letter of offer: signed before the tenancy agreement, it records the tenant's intention to rent, the main terms and the earnest deposit.

• Inventory list: the list of items provided with the property, their quantity and any existing defects.

Step by step: from viewing to handover

1. View and check. The tenant inspects the property and confirms the rent, deposits and main terms. The landlord checks the tenant's identity and background.

2. Booking. The tenant signs the booking form or offer letter and pays the earnest deposit.

3. Draft and review. The agreement is prepared and both parties review it. Raise any changes before signing, not after.

4. Sign. Both parties sign in front of witnesses, usually within a short period after the booking (often within a week), and the tenant pays the security and utility deposits and the first month's rent.

5. Stamp. The agreement is stamped with LHDN within 30 days of signing.

6. Handover. Keys are handed over together with the signed inventory and dated photographs of the property's condition.

How ASCOLAW can help

ASCOLAW (Messrs Akmal Saufi & Co) can prepare or review a residential tenancy agreement for landlords and tenants, advise on deposit, renewal, termination and diplomatic clauses, check the title and any bank-consent requirement, and arrange stamping with LHDN. If a tenancy has already gone wrong, we can also advise on notices, rent arrears and recovering possession.

Fill in the ASCOLAW enquiry form below with the property location, monthly rent, intended term and whether you are the landlord or the tenant, and we will explain the scope of work and the fees that apply.

Frequently asked questions

Is a tenancy agreement valid if it is not stamped?

The contract can still bind the parties, but an unstamped agreement cannot be admitted as evidence in court until it has been stamped and any penalty paid. Stamping within 30 days of signing avoids that problem.

Who pays stamp duty on a tenancy agreement in Malaysia?

Under the Stamp Act the tenant is the party liable for the duty. The parties can agree in the tenancy agreement who ultimately bears the cost, so check the stamp duty clause before you sign.

Can a tenant end the tenancy early?

Only if the agreement allows it, for example through an early-termination or diplomatic clause, or if the landlord agrees. Otherwise, a tenant who leaves early may remain liable for rent for the rest of the fixed term, subject to the terms of the agreement.

Who is responsible for repairs?

It depends on the agreement. Commonly the landlord handles structural and major repairs, while the tenant pays for damage they cause and for minor day-to-day repairs. Write the split into the agreement so there is no argument later.

Can the landlord change the locks if the tenant stops paying rent?

No. Once a tenancy has ended, a landlord must recover possession through court proceedings under the Specific Relief Act 1950. Changing the locks or cutting off utilities while the tenant is still in occupation is not a lawful shortcut.

This article is general information only and is not legal advice. The National Land Code and the Solicitors' Remuneration Order 2023 apply in Peninsular Malaysia; different land laws and fee rules apply in Sabah and Sarawak. Stamp duty rates are based on LHDN's guideline as at September 2026 and may change. Get advice on your own situation before signing.

Related guides

• How to Evict a Tenant Legally in Malaysia: A Comprehensive Guide

• Lease Agreement in Malaysia

• Land Title

• Debt Recovery Process in Malaysia (Proses Tuntut Hutang)