Disclaimer
This is a general guide on clauses commonly found in a residential tenancy agreement in Malaysia. ELP does not handle tenancy disputes, including rent arrears, eviction or disagreements over deposit deductions.A residential tenancy agreement sets out the main terms between a landlord and tenant, including the rent, tenancy period, deposits and responsibilities for the property
Our guide below briefly covers essentials that parties on both sides of the agreement in Malaysia should know, including:
- laws governing residential tenancy agreements
- key clauses
- the importance of identity verification, and
- whether you should engage a lawyer
Let’s begin.
Laws on residential tenancies in Malaysia
A Residential Tenancy Act has been reported as in its final stage of drafting with tabling expected at some point in 2026, but until a dedicated residential tenancy law is passed residential tenancies in Malaysia are generally governed by the terms of the tenancy agreement and applicable principles of contract law in the Contracts Act 1950.
Depending on the circumstances, the National Land Code 1965 and Specific Relief Act 1950 may also be relevant, but the tenancy agreement remains an important document for setting out the parties’ respective rights and obligations.
Key clauses
These clauses cover the basic terms of the tenancy, but the right terms will depend on the property and the arrangement between the landlord and tenant.
| Clause | What to check |
| Parties | Full names and identification numbers of the landlord and tenant, together with their correspondence addresses |
| Property description | Full address, unit and floor number, car park lot(s), and any furniture or fittings included with the property |
| Rental and payment | The exact monthly rent, due date, and payment method |
| Tenancy period | Start and end dates, and whether the tenancy renews automatically, requires a new agreement, or simply ends |
| Deposits | Common market practice is a “2+1” structure: 2 months’ rent as a security deposit and 1 month’s rent (sometimes half) as a utility deposit. This is not a legal requirement. The agreement should state the refund terms for the deposits. |
| Permitted use | Residential use, maximum number of occupants, and whether subletting or short-term stays through platforms such as Airbnb are allowed |
| Maintenance and repairs | Which repairs the landlord bears (structural, major fittings) and which fall on the tenant (minor repairs, damage from misuse) |
| Right of access | Notice the landlord must give before entering the property, other than in an emergency |
| Termination | Notice period required to end the tenancy early, any lock-in period, and the consequences for early termination, such as forfeiture of the deposit |
| Cost and stamp duty | Who bears the costs of preparing and stamping the agreement, with the tenant commonly bearing the stamp duty and related costs |
Identity verifications
Before any money changes hands, it is also important to make sure that the person offering the property is the landlord or is authorised to act for the landlord.
A tenant can ask for reasonable evidence of ownership or authority, particularly before paying a deposit or advance rent. Landlords should likewise verify the identity of their tenants before entering into the agreement.
This is a simple step, but it can help avoid problems before the tenancy even begins.
Do you need a lawyer?
Unlike a commercial tenancy agreement which a straightforward tenancy between individuals on standard terms and with a modest monthly rent, a lawyer may not be necessary if the agreement adequately covers the main terms of the tenancy above.
A legal review can be more useful where the arrangement is less straightforward, for example where:
- the monthly rent is high, such as RM5,000 or above
- the property has specific renovation or usage requirements
- either party wants terms that are not found in a standard tenancy agreement
The further a tenancy departs from the standard case, the more a short review can help avoid a costly gap or dispute later.
Let ELP draft your tenancy agreement
A residential tenancy agreement does not need to be complicated to be useful. We assist landlords and tenants with drafting and reviewing tenancy agreements, whether for residential units or commercial premises. Contact us for an initial consultation.
