Tenancy Agreement in Malaysia 2026: What to Include and How to Sign
Property Lab editorial teamPublished 10 min read
Key points
- Under section 223 of Malaysia's National Land Code, a tenancy of up to three years needs no registration and may be oral, but a stamped written copy is easier to prove.
- A Malaysian tenancy agreement must be submitted for stamping on LHDN's e-Stamp Duty service in MyTax within 30 days of signing, under self-assessment from 1 January 2026.
- In Peninsular Malaysia, the Solicitors' Remuneration Order 2023 sets a lawyer's tenancy agreement fee at 30% of one month's rent (minimum RM500) for rent up to RM10,000.
Contents
- What is a tenancy agreement in Malaysia, and must it be in writing?
- What should a tenancy agreement include?
- How should late payment and early termination clauses be worded?
- Who prepares a tenancy agreement and how much does a lawyer charge?
- How much stamp duty is charged on a tenancy agreement?
- How do you sign and stamp a tenancy agreement?
- Is there a Residential Tenancy Act in Malaysia yet?
- Frequently Asked Questions
- References
A tenancy agreement in Malaysia is the contract that sets the rent, term, deposits and duties of a landlord and tenant. A tenancy of up to three years can legally be oral, but a written, signed agreement stamped with LHDN within 30 days is far easier to prove, and stamping is what lets a court admit the document as evidence.
Put the parties, unit, term, rent, deposits, utilities, repairs, use, inventory, late payment, early exit and deposit refund in writing. Both sides sign, then stamp it online through MyTax within 30 days.
Key numbers (as at October 2026)
- Max term, no registration3 years
- Stamping deadline30 days
- Duty per RM250, 1-3 yr termRM3
- Lawyer's fee, of monthly rent30%
- Minimum lawyer's feeRM500
- Residential Tenancy ActProposed
Also called: perjanjian sewa (tenancy agreement), tuan rumah and penyewa (landlord and tenant), duti setem (stamp duty), e-Duti Setem or e-Stamp Duty (LHDN's online stamping service).
What is a tenancy agreement in Malaysia, and must it be in writing?
In Malaysia, a residential tenancy agreement is a contract that lets a tenant occupy a home for rent, and a tenancy of three years or less does not have to be written or registered, although a signed document is the practical standard.
Section 223(2) of the National Land Code says tenancies of up to three years are "exempt from registration" and may be granted "either by word of mouth or by a written instrument in any form whatsoever". Anything longer is a lease, which section 221 says must be granted on Form 15A.
Why write it down? EdgeProp notes that oral deals are hard to prove. Under section 52 of the Stamp Act 1949, a document chargeable with duty cannot be admitted in evidence until it is duly stamped, or the duty and any penalty are paid.
- If the landlord sells: section 213(3) says an exempt tenancy does not bind a later buyer or chargee unless it was first endorsed on the title. Sections 316 and 317 let a tenant apply for an "Exempt tenancy claimed" endorsement.
- If the home is mortgaged: section 226 says an owner whose land is under a charge cannot grant a tenancy without the chargee's written consent, unless the charge already gives it. Landlords should check their loan papers.
What should a tenancy agreement include?
A Malaysian tenancy agreement should cover who, what, how long and how much, plus who fixes what, how the tenancy can end and how the deposit comes back.
| Clause | Write down | Tick |
|---|---|---|
| Parties | Names, IC or passport | ☐ |
| Property | Address, car park, keys | ☐ |
| Term | Start and end dates | ☐ |
| Renewal | Notice, new rent | ☐ |
| Rent | Amount, due date, method | ☐ |
| Deposits | Security, utility, other | ☐ |
| Utilities | Who pays which bill | ☐ |
| Repairs | Minor vs major split | ☐ |
| Use | Home only, no sublet | ☐ |
| Entry | Notice, emergencies | ☐ |
| Inventory | Items, condition, photos | ☐ |
| Late payment | Grace period, charge | ☐ |
| Early exit | Notice, what is lost | ☐ |
| Deposit refund | Deductions, deadline | ☐ |
No Malaysian statute sets a standard list of residential tenancy clauses; this checklist follows the laws cited in this guide and the clauses EdgeProp's 2026 renting guides recommend.
- Term and renewal: exact dates. EdgeProp says most residential terms run one or two years and tenants usually give two to three months' written notice to renew, with the new rent open to review.
- Rent and deposits: the amount, due date and payment method, and what each deposit may be used for. The "2+1+½" deposit pattern is market practice, not law; our guide to rental deposits in Malaysia explains it.
- Utilities and repairs: who pays each bill. EdgeProp gives an example repair split: the tenant pays under RM150, the landlord above.
- Use, subletting and entry: home use only and no subletting without written consent; EdgeProp suggests landlord visits only with advance notice, except in emergencies.
How should late payment and early termination clauses be worded?
Late payment and early termination clauses in a Malaysian tenancy agreement should name a clear notice period and a reasonable sum, because under the Contracts Act 1950 a court awards only reasonable compensation up to the amount named.
Section 75 of the Contracts Act 1950 allows "reasonable compensation not exceeding the amount so named", whether or not actual loss is proved, and its explanation says increased interest from the date of default may be a penalty. A late charge out of proportion to the rent may therefore be cut down.
- Early termination: EdgeProp says many agreements make a tenant who leaves early without consent lose the two-month security deposit, and stricter ones claim rent for the rest of the term. Section 74 says the means of remedying a breach count when loss is estimated, so re-letting the unit may matter.
- Diplomatic clause: EdgeProp describes this expatriate clause as allowing early exit if the employer transfers the tenant abroad or the work pass is lost, often only after the first year of a two-year term, with two months' notice and HR proof. The terms are negotiated, not set by law.
- Unpaid rent: a landlord cannot lock a tenant out; our guide on what to do when a tenant is not paying rent covers the court route.
A clause is only as strong as its wording and its stamp: name exact sums and notice periods, keep penalties proportionate, and stamp on time.
Who prepares a tenancy agreement and how much does a lawyer charge?
Either side, an agent or a lawyer can draft a tenancy agreement in Malaysia; when a lawyer in Peninsular Malaysia prepares it, the Solicitors' Remuneration Order 2023 sets the fee at 30% of one month's rent, with a RM500 minimum, for rents up to RM10,000 a month.
According to a Richard Wee Chambers summary of the Order, in force since 15 July 2023, its Second Schedule charges 15% to 25% of the monthly rent where rent exceeds RM10,000, and 60% (minimum RM1,000) for a lease. PropCashflow quotes paragraph 6(2) as allowing no discount on that schedule. Legal fees carry 8% service tax.
| Monthly rent | Scale fee | With 8% tax |
|---|---|---|
| RM1,200 | RM500 | RM540 |
| RM2,000 | RM600 | RM648 |
| RM3,500 | RM1,050 | RM1,134 |
Our calculation from the Second Schedule tenancy scale. Excludes stamp duty and disbursements. The Order covers Peninsular Malaysia; in Sabah and Sarawak, ask the lawyer for a written quote.
How much stamp duty is charged on a tenancy agreement?
Stamp duty on a Malaysian tenancy agreement signed in 2026 is RM1, RM3, RM5 or RM7 for every RM250 (or part of RM250) of yearly rent, depending on whether the term is up to one year, one to three years, three to five years or longer.
The RM2,400 exemption was removed for agreements from 1 January 2025. Worked example: RM2,200 a month on a two-year term is RM26,400 a year; divided by 250 that is 105.6, rounded up to 106 units; 106 × RM3 = RM318 (our calculation). EdgeProp says the tenant usually pays. Our guide to stamp duty on tenancy agreements has the full rate table and penalties.
How do you sign and stamp a tenancy agreement?
To sign and stamp a tenancy agreement in Malaysia, both parties sign the final version, then one of them (or an agent) submits it on LHDN's e-Stamp Duty service in MyTax within 30 days and pays the self-assessed duty.
- Check the parties: EdgeProp suggests attaching the landlord's proof of ownership and the tenant's IC or passport copy.
- Agree the final text: fill in every blank and attach the signed inventory.
- Sign: EdgeProp suggests both parties initial every page. LHDN treats electronic instruments the same as paper ones for stamp duty.
- Get a TIN: LHDN requires a Tax Identification Number for every party.
- Submit within 30 days: MyTax, ezHASiL Services, Stamp Duty, e-Stamp Duty; fill in the Stamp Duty Declaration Form (BNDS) and upload the agreement. Tenancies joined Phase 1 of self-assessment on 1 January 2026.
- Pay: within 30 days of submitting the BNDS, by FPX, eTT or the listed bank bill payment options.
- Print and keep: the stamp certificate prints only once from the portal, so save the PDF, and keep records for at least seven years.
Late stamping costs RM50 or 10% of the duty (whichever is higher) within three months after the deadline, and RM100 or 20% after that, says LHDN's Stamp Duty FAQ (updated 31 December 2025).
Is there a Residential Tenancy Act in Malaysia yet?
No: as at 23 October 2026, the Residential Tenancy Act is still a proposed law in Malaysia, so tenancy agreements are governed by the contract itself, the Contracts Act 1950 and the National Land Code.
On 4 August 2026, a deputy housing minister told the Dewan Negara the ministry was finalising the bill, The Star reported. We found no record of it being tabled by late October 2026, so Malaysia still has no tenancy tribunal and your written clauses carry most of the weight.
Frequently Asked Questions
Is a verbal tenancy agreement valid in Malaysia?
Yes, for terms of three years or less, the National Land Code accepts a tenancy made by word of mouth. The difficulty is proof, so most landlords and tenants sign a written version.
Can I use a free tenancy agreement template?
You can, but treat it as a starting point and rewrite each clause to match your own rent, deposits and repair split. EdgeProp warns against using a residential form for a shop lot.
How much does a lawyer charge to prepare a tenancy agreement?
In Peninsular Malaysia the scale is 30% of a month's rent with a RM500 floor, for rent up to RM10,000, and the Order is reported to allow no discount. Add 8% service tax.
Who pays the stamp duty on a tenancy agreement?
In practice it is usually the tenant, according to EdgeProp, though the agreement may allocate the cost differently. Whoever pays, it must be submitted within 30 days of signing.
Does an e-signed tenancy agreement need stamping?
Yes: LHDN's FAQ says electronic instruments are subject to stamp duty in the same way as written ones. Upload the signed file when you submit the BNDS.
What happens if a tenancy agreement is never stamped?
A court will not receive it as evidence until the duty and any late penalty are paid. Stamping on time avoids both the penalty and the delay.
Does the tenancy continue if the landlord sells the property?
Not automatically: a tenancy of up to three years binds a buyer only if it was endorsed on the title before the sale. Tenants worried about a sale can ask a lawyer about that endorsement.
What is a diplomatic clause in a tenancy agreement?
It is an early-exit right, mainly for expatriates, that applies if the employer relocates the tenant overseas or the work pass ends. The minimum stay, notice and proof needed are agreed between the parties.
References
- National Land Code (Revised 2020), section 223 (via LawPlayer)Used for tenancies of up to three years being exempt from registration and valid orally or in any written form.
- National Land Code, section 213 (via LawPlayer)Used for the rule that an unendorsed exempt tenancy does not bind a later buyer or chargee; sections 221, 226, 316 and 317 were read on the same site.
- National Land Code, section 226 (via LawPlayer)Used for the chargee's written consent to a tenancy of charged land.
- Contracts Act 1950, section 75 (via LawPlayer)Used for reasonable compensation up to a named sum and increased interest as a possible penalty; section 74 was read on the same site.
- Stamp Act 1949, section 52 (via LawPlayer)Used for unstamped instruments being inadmissible until duty and penalty are paid.
- LHDN: Stamp Duty FAQ, e-Stamp Duty and self-assessment (updated 31 December 2025, PDF)Used for the 30-day deadlines, Phase 1, TIN, MyTax route, payment methods, the stamp certificate, record keeping, electronic instruments and late penalties.
- Richard Wee Chambers: Finance Act 2024 amendments, the stamp duty focusUsed for the Item 49 rates and the removal of the RM2,400 exemption.
- Richard Wee Chambers: The Solicitors' Remuneration Order 2023Used for the Second Schedule lease and tenancy scale fees and the 15 July 2023 start date.
- PropCashflow: Solicitors' Remuneration Order 2023, legal fees in 2026 (26 July 2026)Used for paragraph 6(2), under which no discount is allowed on the Second Schedule.
- EdgeProp: 7 essential clauses every Malaysian tenancy agreement needs (9 October 2026)Used for market practice on parties, renewal notice, the repair cost limit example, early exit, the diplomatic clause, entry and initialling pages.
- EdgeProp: Tenancy agreements Malaysia, simple rental guide (9 October 2026)Used for the shop lot template warning and corroboration of the diplomatic clause and SRO tenancy scale.
- The Star: Residential Tenancy Bill being finalised (4 August 2026)Used for the bill's status in the Dewan Negara.
LawPlayer reproduces the Attorney General's Chambers texts, some of them older reprints, so check lom.agc.gov.my and LHDN's own pages for the latest wording. The Solicitors' Remuneration Order figures come from law firm and portal summaries, not the gazette itself.
General information only, not legal or tax advice. Ask a lawyer to review your tenancy agreement before you sign.
Sources
- National Land Code (Revised 2020), section 223 — Attorney General's Chambers of Malaysia (via LawPlayer)
- Stamp Duty FAQ: e-Stamp Duty and Self-Assessment Stamp Duty System — Lembaga Hasil Dalam Negeri Malaysia (LHDN)
- Contracts Act 1950, section 75 — Attorney General's Chambers of Malaysia (via LawPlayer)
- Stamp Act 1949, section 52 — Attorney General's Chambers of Malaysia (via LawPlayer)
- The Solicitors' Remuneration Order 2023 — Richard Wee Chambers
- Residential Tenancy Bill being finalised to balance rights of tenants, landlords — The Star
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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