How to Write a Tenancy Agreement in Malaysia: A Clause-by-Clause Guide

Knowing how to write a tenancy agreement in Malaysia is mostly knowing which clauses prevent the arguments that come later: about the deposit, repairs, early exit and who pays what. This guide goes through them in order. If you would rather start from a finished document, the free tenancy agreement template fills itself in as you type.

What law applies

Malaysia has no single residential tenancy statute yet. As of September 2026 the Residential Tenancy Bill is still being finalised by the housing ministry and has not been passed. Until it is, a tenancy is governed mainly by the agreement itself and general law such as the Contracts Act 1950, the Civil Law Act 1956 and the Specific Relief Act 1950. That is why the wording of the agreement matters so much: it is most of the rulebook.

The clauses every agreement needs

1. Parties and premises. Full names and NRIC or passport numbers exactly as on the documents, the full address, and for a company its SSM number and who signs.
2. Term. Start date, end date and length. State whether there is an option to renew, for how long, and how the new rent is set.
3. Rent. Amount, due date, how it is paid and into which account, and any grace period or late-payment charge.
4. Deposits. Security and utility deposits, what they may be used for, and how many days after handover they must be refunded.
5. Use and occupation. Who may live there, no subletting or short-term letting without consent, pets, smoking and building by-laws.
6. Repairs and maintenance. Who fixes what. A common approach: the tenant pays for minor repairs up to a stated amount, the landlord for structural items and wear and tear.
7. Utilities. Whose name the accounts are in and who pays each bill.
8. Early termination. Notice periods for each side, any lock-in period, and what happens to the deposit if the tenant leaves early.
9. Breach and remedies. How long a party has to fix a breach after notice, and what happens if they do not.
10. Handover and return. Inventory, meter readings, keys and access cards, and the condition the unit must be returned in.
11. Stamp duty and costs. Who pays the stamp duty and any legal fees.

Put every number (rent, deposits, dates, notice periods) in one Schedule at the back and refer to it from the clauses. Then a change is made in one place and the agreement cannot contradict itself.

The usual deposits

For residential lets, two months' rent as security deposit, half a month as utility deposit and one month's rent in advance is the common starting point. Room rentals often take one month's security deposit; commercial lets often take more. None of it is fixed by law, so agree it and write it down.

Clauses that cause the most disputes

• "Fair wear and tear" left undefined. Attach an inventory and dated photos of the condition at handover.
• Deposit deductions with no list of what may be deducted and no refund deadline.
• Early exit that says nothing about the deposit. Say plainly whether it is forfeited, refunded or partly kept.
• Holding over. If the tenant stays after the term without consent, the Civil Law Act 1956 lets the landlord claim double rent. Say so in the agreement so it is not a surprise.
• Self-help eviction. A landlord cannot lock a tenant out or cut the utilities to force them out; possession must be recovered through the courts under the Specific Relief Act 1950. Clauses that claim otherwise will not help.

Signing and stamping

Both sides sign and initial every page in front of a witness. The agreement should then be stamped through LHDN's e-Duti Setem within 30 days of signing; an unstamped agreement cannot be used as evidence in court until the duty and any penalty are paid. The duty depends on the annual rent and the length of the tenancy. Work it out with the tenancy stamp duty calculator.

Do you need a lawyer?

Not for an ordinary residential let. Landlords, tenants and agents prepare their own agreements every day. For a long lease, a large fit-out, a company guarantor or anything unusual, a lawyer's review is money well spent.

General information for Malaysian property agents, checked on 28 September 2026. Fees, rates and rules change; confirm anything you rely on with the regulator, the portal or your agency.