Renting in Malaysia as an Expat 2026: 8 Things to Know First
Property Lab editorial teamPublished 12 min read
Key points
- As at 30 October 2026, Malaysia has no Residential Tenancy Act in force, so an expat tenant's rights come from the tenancy agreement and general contract law.
- An illustrative RM3,500-a-month condo let for two years in Malaysia needs about RM12,754 at move-in in 2026, including RM8,750 of refundable deposits.
- Under the BOVAEP scale of fees, an estate agent in Malaysia may charge at most 1.25 months' rent for letting a home on a tenancy of up to three years.
Contents
- How to rent in Malaysia as an expat: the 8 things in order
- 1. Your pass and the documents landlords ask for
- 2. No residential tenancy law is in force yet
- 3. The cash you need on move-in day
- 4. The tenancy agreement terms expats should read
- 5. Who pays what: tenant and landlord costs
- 6. Agent fees and how to avoid rental scams
- 7. The move-in inspection and inventory
- 8. Ending the tenancy and getting your deposit back
- Frequently Asked Questions
- References
Renting in Malaysia as a foreigner is legal and common: an expat with a valid pass signs the same kind of tenancy agreement as a local tenant. Eight things decide how smoothly it goes, from your pass and the move-in cash to the diplomatic clause and the deposit refund. On an illustrative RM3,500-a-month condo let for two years, expect to pay about RM12,754 before you collect the keys.
Foreigners can rent on a valid pass, such as an Employment Pass, a Dependant Pass or an MM2H pass. Budget roughly 3½ months' rent plus stamp duty, ask for a diplomatic clause, check the agent on the BOVAEP register and stamp the agreement within 30 days.
Key numbers (as at October 2026)
- Move-in cash, RM3,500 exampleRM12,754
- Refundable part of itRM8,750
- Duty per RM250 a year, 1-3 yr termRM3
- Time to stamp the agreement30 days
- Max agent fee, months' rent1.25
- Residential Tenancy ActProposed
Also called: tenancy agreement (perjanjian sewa); security and utility deposits (deposit keselamatan, deposit utiliti); stamp duty (duti setem); diplomatic clause, also known as the expatriate clause; Employment Pass (Pas Penggajian); Dependant Pass (Pas Tanggungan); small claims (tuntutan kecil); REN and REA (real estate negotiator and registered estate agent).
How to rent in Malaysia as an expat: the 8 things in order
- Pass and papers: have your passport, a valid pass and an employer letter ready before viewings.
- The law today: no tenancy act is in force, so the written agreement sets your rights.
- Move-in cash: plan for about 3½ months' rent plus stamp duty on the tenancy.
- Agreement terms: check the term, renewal, rent review and a diplomatic clause.
- Who pays what: agree in writing which bills and repairs are yours.
- Agent check: verify the REN on the BOVAEP register and view the unit in person.
- Inventory: photograph every room and sign a list of items and defects on day one.
- Exit and refund: give notice on time, hand back keys in writing and claim the balance.
1. Your pass and the documents landlords ask for
A foreigner can rent a home in Malaysia while holding a valid immigration pass, and landlords have a legal reason to check it: Malaysian law can make the person in control of a home answerable for an illegal immigrant staying there.
Section 55E of the Immigration Act 1959/63 bars an occupier, anyone with "charge, management or control" of premises, from letting an illegal immigrant stay there, and presumes knowledge unless all reasonable measures were taken. Passes handled by the Immigration Department's Expatriate Services Division include the Employment Pass, Dependant Pass and Long-Term Social Visit Pass. Landlords usually ask for:
- Passport: a copy attached to the agreement, as EdgeProp suggests.
- Pass: check that its expiry covers the term, or raise the renewal before you sign.
- Income: an employer letter or recent pay slips (Remitly, September 2026).
MM2H Platinum, Gold and Silver participants must complete a home purchase within one year of pass endorsement (MOTAC, 28 May 2025), so their rental may be short; see MM2H and Buying Property in Malaysia 2026.
2. No residential tenancy law is in force yet
Malaysia still has no Residential Tenancy Act as at 30 October 2026: the bill remains proposed, and none of the 27 bills listed for the Dewan Rakyat in 2026 on Parliament's bill list is a tenancy bill.
On 4 August 2026 a deputy minister of the Ministry of Local Government Development (KPKT) told the Dewan Negara the bill was being finalised, The Star reported. Until it is passed and gazetted, there is no tenancy tribunal and no legal cap on deposits; the agreement and general laws apply. Section 7 of the Specific Relief Act 1950 lets a landlord recover a home from a tenant who stays on after the tenancy ends only "by proceedings in the court", so a lock-out is not lawful. The Consumer Protection Act 1999 excludes land and interests in land, so the consumer claims tribunal is generally not the forum for a tenancy dispute.
Nightly stays are a separate regime: in 2020 the Federal Court treated Airbnb-style stays as licences, not tenancies, and upheld a condo's house rule banning them. See Is Airbnb Legal in Malaysia?
3. The cash you need on move-in day
Moving into a Malaysian rental usually costs about 3½ months' rent plus stamp duty, because landlords commonly ask for "2+1+½": two months' security, one month in advance and half a month for utilities.
That pattern is market practice, not law (iBilik, April 2026). Duty follows LHDN's stamp duty guideline of 30 June 2026: Item 49(a) charges RM1, RM3, RM5 or RM7 per RM250 of yearly rent, or part of it, for terms of up to one, three, five and over five years. The tenant is liable for the original.
Illustrative move-in cash for a RM3,500-a-month condo on a two-year tenancy, worked out in Python:
| Payment | Basis | Amount |
|---|---|---|
| Security deposit | 2 months | RM7,000 |
| Utility deposit | ½ month | RM1,750 |
| Advance rent | 1 month | RM3,500 |
| Stamp duty, original | 168 × RM3 | RM504 |
| Move-in cash | 3.64 months | RM12,754 |
| Lawyer's fee, if yours | 30% + 8% tax | RM1,134 |
| Total with lawyer | 3.97 months | RM13,888 |
| Refunded at the end | 2½ months | RM8,750 |
Assumes RM42,000 a year, or 168 units of RM250, at RM3 for a two-year term; a one-year term would pay RM168. Lawyer's fee: Solicitors' Remuneration Order 2023 scale of 30% of a month's rent, minimum RM500 (Richard Wee Chambers summary), plus 8% service tax; iBilik says tenants usually bear the drafting fee. Excludes access card deposits, often RM50 to RM100 (iBilik), and any agent fee.
An earnest deposit paid with the offer letter usually becomes the first month's rent, EdgeProp's expat guide says; get that in writing.
4. The tenancy agreement terms expats should read
The terms that matter most to expats renting in Malaysia are the length, the renewal option, the rent review and a diplomatic clause, because a transfer abroad in the middle of a one- or two-year lease is costly without an exit right.
- Term and renewal: leases typically run one or two years, often with an option to renew, and EdgeProp says the new rent should be open to review against the market.
- Diplomatic clause: it lets you end the lease early if your employer moves you out of Malaysia or you lose your Employment Pass. EdgeProp's October 2026 guides say it usually applies only after 12 months of a 24-month lease, with two months' notice and HR proof; a 2013 PropertyGuru guide gave two to three months. It is negotiated, not set by law.
- Building rules: section 70(3) of the Strata Management Act 2013 says a condo's additional by-laws bind a tenant or occupier too, and section 70(2) allows fines of up to RM200 for a breach.
Our Tenancy Agreement in Malaysia 2026 guide has a clause-by-clause checklist.
5. Who pays what: tenant and landlord costs
In a Malaysian tenancy the tenant normally pays for what they use, such as electricity, water and internet, while the owner keeps paying the property's own bills: strata charges, quit rent and assessment tax.
| Cost | Usually paid by | Why |
|---|---|---|
| Electricity, water, internet | Tenant | Utility deposit covers it |
| Maintenance, sinking fund | Landlord | Charged to proprietors |
| Quit rent, assessment | Landlord | Owner's land and council bills |
| Minor repairs | Tenant | Often up to a cost limit |
| Major or structural repairs | Landlord | Agreement decides |
| Tax on the rent | Landlord | It is the owner's income |
Strata Management Act 2013 section 60(3) imposes Charges on proprietors; Conventus Law (April 2025) treats quit rent and assessment as landowners' bills. The repair split and utility deposit are market practice (EdgeProp). Your agreement can say otherwise. Landlords' tax: see Rental Income Tax in Malaysia 2026.
6. Agent fees and how to avoid rental scams
Under the BOVAEP scale, an agent's letting fee in Malaysia is at most 1.25 months' gross rent for a tenancy of up to three years, minimum one month, due when the agreement is signed.
The BOVAEP scale allows pro rata fees under a year and excludes serviced apartments. On our example, 1.25 months is RM4,375. It does not say who pays: EdgeProp says the landlord normally does for a year or more, but practice varies, so settle it in writing before viewings.
If you arrange a home before you arrive, be careful with deposits. BOVAEP's advisory of 17 July 2024 warns that fake agents take earnest deposits from buyers or tenants and vanish. It advises:
- Verify: look up the REA or REN on lpeph.gov.my and check that the advertised phone number matches the board's records.
- Inspect: view the unit in person before paying, and be wary of an agent who avoids viewings.
- Pay safely: where possible, pay a registered real estate agency or another legal stakeholder.
7. The move-in inspection and inventory
A signed inventory and a set of dated photos taken on move-in day are a tenant's best evidence in Malaysia, because the landlord later compares the unit against them when deciding what to deduct from the deposit.
For a furnished unit, EdgeProp says the list should name each appliance, item of furniture and fixture with its condition, signed by both sides; its October 2026 deposit guide adds meter readings, keys, access cards, parking tags and remote controls. Photograph existing marks, leaks and stains, send the landlord a dated message listing defects, and report later ones in writing. Rental Deposit in Malaysia explains fair wear and tear.
8. Ending the tenancy and getting your deposit back
When a Malaysian tenancy ends, the notice, the deductions and the refund date all come from the agreement, as no law sets a deadline; EdgeProp cites 14 or 30 days after handover as typical wording.
If you leave early without consent, many agreements forfeit the two-month security deposit, and stricter ones claim the remaining rent (EdgeProp). Section 75 of the Contracts Act 1950 limits a named sum to "reasonable compensation not exceeding the amount so named", so a forfeiture clause is not automatically enforced in full.
If the balance is not returned, send a written demand with a deadline. Next comes court: the Judiciary's FAQ says claimants must represent themselves in small claims below RM5,000, and a Donovan & Ho guide says Order 93 claims take about three to four months, with costs capped at RM100.
Stamp the agreement on time. LHDN's penalty page gives 30 days from signing, or 30 days after an agreement signed abroad reaches Malaysia, and late stamping costs at least RM50. Under section 52 of the Stamp Act 1949, an unstamped agreement cannot be admitted in evidence until the duty and any penalty are paid. See Stamp Duty on Tenancy Agreements in Malaysia 2026.
Key insight: for an expat, the two clauses worth negotiating hardest are the diplomatic clause and the refund deadline. Without the first, a transfer abroad can cost the whole security deposit, RM7,000 in our example; without the second, you have no date to hold the landlord to.
Related guides: Best Areas to Live in Kuala Lumpur 2026, Tenant Not Paying Rent in Malaysia and Rental Deposit in Malaysia.
Frequently Asked Questions
Can a foreigner rent a house in Malaysia?
Yes, with a valid pass you can sign a residential tenancy in your own name. Expect the landlord to copy your passport.
How much notice do I give to end a tenancy?
Whatever your agreement says; EdgeProp describes two months as usual for homes.
What is a diplomatic clause in Malaysia?
An early-exit term for expatriate tenants who are posted abroad or lose their work pass, often usable after year one of a two-year lease.
How much deposit do expats pay to rent in Malaysia?
The common pattern is two months' rent as security and half a month for utilities, with one month's rent paid in advance. None of these amounts is fixed by law.
Who pays the agent when renting in Malaysia?
Often the landlord, but practice varies, so agree it in writing. The board's scale caps a fee for a term of three years or less at 1.25 months' rent.
Is there a tenancy law protecting tenants in Malaysia?
Not a dedicated one yet: the Residential Tenancy Bill had not been tabled by late October 2026.
Do I need to stamp a tenancy agreement signed overseas?
Yes. LHDN allows 30 days from the date the document is received in Malaysia, and the tenant normally pays duty on the original copy.
References
- Parliament of Malaysia: List of Bills, Dewan Rakyat (read 30 October 2026)Used for the 27 bills of 2026, none of them a tenancy bill.
- The Star: Residential Tenancy Bill being finalised (4 August 2026)Used for the deputy minister's statement in the Dewan Negara.
- LHDN: Garis Panduan Pengenaan Duti Setem, Jadual Pertama Akta Setem 1949 (30 June 2026)Used for the Item 49(a) rates and who pays duty on the original and duplicate.
- LHDN: Penalty (Stamp Duty), updated 13 May 2026Used for the 30-day stamping periods and late penalties.
- BOVAEP: Scale of fees, Part C Estate AgencyUsed for the letting fee cap, the one-month minimum, pro rata fees and the serviced apartment exclusion.
- BOVAEP: FAQ, Estate AgentUsed for when a letting fee is due.
- BOVAEP: Public advisory, beware of fraudulent real estate agents and negotiators (17 July 2024)Used for the deposit scam warning and the three precautions.
- Office of the Chief Registrar, Federal Court of Malaysia: FAQUsed for self-representation in small claims below RM5,000.
- Immigration Department, Expatriate Services Division portalUsed for the types of pass it handles.
- Immigration Act 1959/63, section 55E (LawPlayer, AGC text as at 2006)Used for the occupier offence and presumption; later amendments may not be shown.
- Specific Relief Act 1950, section 7 (LawPlayer)Used for recovering possession only through the court.
- Consumer Protection Act 1999, section 2 (LawPlayer)Used for the exclusion of land and interests in land.
- Contracts Act 1950, section 75 (LawPlayer)Used for reasonable compensation up to a named sum.
- Stamp Act 1949, section 52 (LawPlayer)Used for unstamped agreements as evidence.
- Strata Management Act 2013, sections 60 and 70 (LawPlayer)Used for Charges on proprietors, by-laws binding tenants and the RM200 fine.
- MOTAC: MM2H programme announcement (28 May 2025)Used for the one-year purchase deadline after pass endorsement.
- Skrine: Federal Court, management body can stop short-term rentals (October 2020)Used for short stays being licences, not tenancies.
- Richard Wee Chambers: The Solicitors' Remuneration Order 2023Used for the 30% tenancy fee and the RM500 minimum; a law firm summary, not the gazette.
- Conventus Law: Non-payment of quit rent and assessment (April 2025)Used for quit rent and assessment as owners' bills.
- Conventus Law (Donovan & Ho): Practical guide to small claims action (December 2018)Used for Order 93, the timeline and the RM100 costs cap.
- EdgeProp: Housing options for expats in Malaysia (9 October 2026)Used for lease length, the diplomatic clause, the earnest deposit and who usually pays the agent.
- EdgeProp: 7 essential clauses every Malaysian tenancy agreement needs (9 October 2026)Used for passport copies, rent review, repairs, the inventory and early exit.
- EdgeProp: Rental deposit deductions in Malaysia (16 October 2026)Used for refund period examples, utility deposits, meter readings and inventory items.
- iBilik: Rental deposits in Malaysia explained (April 2026)Used for the 2+1+½ pattern, access card deposits and who usually pays drafting and duty.
- PropertyGuru: Rental procedures (January 2013)Used only for an older notice range for the diplomatic clause.
- Remitly: Can foreigners rent property in Malaysia? (September 2026)Used for employer letters and pay slips as proof of income.
Official pages change, so check the latest wording on parlimen.gov.my, hasil.gov.my and lpeph.gov.my before you sign or pay.
This page is general information, not legal, tax or immigration advice. The cost example is illustrative and assumes Peninsular Malaysia rules; ask a Malaysian lawyer to review your tenancy agreement, and your employer or the Immigration Department about your pass.
Sources
- List of Bills, Dewan Rakyat — Parliament of Malaysia
- Garis Panduan Pengenaan Duti Setem, Jadual Pertama Akta Setem 1949 — Lembaga Hasil Dalam Negeri Malaysia (LHDN)
- Penalty (Stamp Duty) — Lembaga Hasil Dalam Negeri Malaysia (LHDN)
- Fees, Seventh Schedule: Estate Agency — Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP)
- Public Advisory: Beware of Fraudulent Real Estate Agents and Negotiators — Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP)
- Housing Options for Expats in Malaysia — EdgeProp
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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