Renting out your condo in Malaysia: first-time landlord checklist
You are about to rent out your condo for the first time. Five things do most of the work: a stamped tenancy agreement, the right deposits, a screened tenant, the building's move-in rules, and declaring the rent to LHDN (the tax office). By custom, not law, you collect two months' rent as security deposit, half a month for utilities and one month in advance. A registered agent may charge at most 1.25 months' rent for a tenancy of up to three years under the fee scale of BOVAEP, the board that licenses agents. Stamping the agreement costs RM1 for every RM250 of yearly rent on a tenancy of one year or less: RM96 on RM2,000 a month (Stamp Act 1949 rates in force since 1 January 2025).
Malaysia still has no Residential Tenancy Act as at 5 October 2026, so the agreement you sign is the rulebook. Stamp it within 30 days on LHDN's e-Duti Setem in MyTax. A tenant who stops paying can only be removed through the courts.
First-time landlord checklist: 10 steps before the tenant moves in
- Confirm you are allowed to let the unitRead the house rules of the JMB or MC (the owners' bodies that run the building) for restrictions: minimum tenancy length, bans on room-by-room letting, occupant limits. If you bought under PR1MA, RUMAWIP (Residensi Wilayah) or Rumah Selangorku you generally cannot let the unit at all: those schemes carry owner-occupation or no-subletting conditions, see PR1MA vs RUMAWIP vs Rumah Selangorku. Tell your bank if the letter of offer requires it, and tell your insurer.
- Decide the furnishing level and set the rentLook at what comparable units in the same building are actually letting for, then price slightly under the listings that have sat for months; a unit empty for two months costs more than a slightly lower rent. Our rental yield guide shows how to turn rent into a net yield after maintenance fee, assessment and quit rent.
- Appoint a registered agent, or do it yourselfUse a REN or REA registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP). The Board's fee scale caps the letting fee at 1.25 months' rent for a tenancy of up to three years, with a one-month minimum, plus 8% service tax; one month for a one-year tenancy is the usual quote and the landlord pays. Get the fee and who pays it in writing before any viewing. How to check an agent's tag number is in property agent fees: who pays.
- Screen the tenant properlyAsk for IC or passport and work pass, an employment letter or recent payslips, and references from the current landlord. Meet them. For a foreign tenant, check that the visa covers the tenancy period. Never hand over keys against a promise to transfer the deposit later.
- Collect the deposits before keysMarket norm: two months' rent as security deposit, half a month as utilities deposit, plus the first month's rent in advance. Record the breakdown in the agreement and issue a receipt. The security deposit is for damage and unpaid bills, not the last two months' rent, and the agreement should say so.
- Sign a proper tenancy agreementA lawyer-drafted or agent-standard agreement should cover rent and due date, deposits and their refund, the repairs split, renewal and termination clauses, a diplomatic clause if the tenant may relocate, and a photo inventory. See the section on the agreement below.
- Stamp the agreement within 30 daysTenancy agreements are stamped online with LHDN on e-Duti Setem in the MyTax portal (the old STAMPS portal closed on 31 December 2025), within 30 days of signing in Malaysia. By custom the tenant pays the duty on the original and the agreement should say so. Stamp late and the penalty is RM50 or 10% of the unpaid duty, whichever is higher, within the first three months, then RM100 or 20%. An unstamped agreement cannot be used as evidence in court until duty and penalty are paid.
- Register the tenant with the JMBMost buildings require a tenant registration form, copies of the agreement and ICs, and a refundable move-in deposit before access cards are issued. Ask about car park allocation, the number of access cards and any move-in window or lift booking.
- Do a handover with meter readings and photosRecord the TNB, water and gas meter readings, photograph every room and defect, and both sign the inventory; this is what settles deposit arguments 12 months later. Transfer utility accounts to the tenant if you want the bills in their name.
- Set up your records for taxFile the stamped agreement, deposit receipts, maintenance fee statements, assessment and quit rent receipts, insurance, repair invoices and the loan statement showing interest. You need them to declare rental income and claim deductions with LHDN.
Deposits, agent fee and what the tenancy agreement must say
Why the contract matters more than usual. Malaysia has no Residential Tenancy Act in force as at 5 October 2026. The housing minister said on 5 February 2026 that the bill was in final drafting and that he hoped it would pass the Dewan Rakyat this year; Free Malaysia Today reported on 12 August 2026 that it had still not been tabled, and we found no tabling since. Tenancies are governed by the Contracts Act 1950, the National Land Code and general law. There is no statutory cap on deposits, no deposit protection scheme and no tenancy tribunal. Your agreement fills all those gaps; the clause-by-clause list is in tenancy agreement, stamp duty and deposits.
Deposits. The Klang Valley custom is 2 + 0.5 + 1: two months' security deposit, half a month's utilities deposit and one month's advance rent, all before keys. State what each deposit covers, when it is refunded (14 to 30 days after handover is common, less documented costs), and that it is not rent for the final months without your written consent.
Stamp duty. Since 1 January 2025 duty is charged on the full yearly rent, in lots of RM250, at a rate that rises with the length of the tenancy (Stamp Act 1949, First Schedule, Item 49(a), as amended by the Finance Act 2024):
| Monthly rent | One year or less (RM1 a lot) | Over 1 up to 3 years (RM3 a lot) | Over 3 up to 5 years (RM5 a lot) |
|---|---|---|---|
| RM1,500 | RM72 | RM216 | RM360 |
| RM2,000 | RM96 | RM288 | RM480 |
| RM2,500 | RM120 | RM360 | RM600 |
| RM3,000 | RM144 | RM432 | RM720 |
Over five years the rate is RM7 a lot. The duplicate copy is RM10.
Agent fee. The BOVAEP scale (Seventh Schedule to the Board's rules) sets the ceiling: 1.25 months' gross rent for a tenancy of up to three years, 1.5 months for over three up to four years and 1.75 months above that, with a minimum of one month, plus 8% service tax. On RM2,000 a month a one-month fee is RM2,000 plus RM160 tax. The landlord pays under the scale; get it in writing.
Clauses to insist on. Rent amount and due date; late-payment interest; a termination clause with notice periods and what happens to the deposit on early exit; who pays which repairs; no subletting and no short-term letting (see Airbnb and short-term rental rules); an inventory with photos; your right to inspect with notice; and what happens on default.
If the tenant stops paying. You cannot change the locks, cut utilities or remove belongings yourself: section 7(2) of the Specific Relief Act 1950 allows possession to be recovered from a tenant only through the court. The route is a notice ending the tenancy, a court claim for the arrears and possession, then enforcement by the court's bailiff. A tenant who stays on after the tenancy has ended can be charged double rent until they leave (Civil Law Act 1956, section 28(4)(a)). Separately, the Distress Act 1951 lets you ask the court for a warrant to seize and sell the tenant's movable goods for up to 12 months of unpaid rent (section 5); it recovers money, not the unit.
Fully furnished, partly furnished or bare: which is worth it?
Rental income tax, JMB rules and insurance for a landlord
Rental income tax. Rent from ordinary letting is taxable under section 4(d) of the Income Tax Act 1967 and goes into your yearly return (Form BE, or Form B if you have business income). There is no exemption for residential rent in 2026. You are taxed on the net rent, at your own income tax rate. LHDN's Public Ruling 12/2018, as tax firms summarise it, draws the line like this:
| Deductible against rent | Not deductible |
|---|---|
| Interest on the housing loan | Repayment of the loan principal |
| Assessment and quit rent (parcel rent) | Renovation and the first furnishing of the unit |
| Fire insurance premium | Advertising and agent fee to find the first tenant |
| Maintenance charges and sinking fund | Legal fee and stamp duty on the first tenancy agreement |
| Ordinary repairs, and replacing furnishings such as furniture or an air-conditioner | Costs while the unit sat empty before it was ever let |
| Agent fee and costs to renew a tenancy or change tenant; rent collection costs | Your own time and travel |
If the deductions exceed the rent in a year, the loss is simply lost: it cannot be set against your salary or carried forward. The worked example and the filing steps are in rental income tax in Malaysia.
JMB and MC rules. Under the Strata Management Act 2013 the building's by-laws bind tenants and occupiers as well as owners. The maintenance charges stay your debt whether or not the rent comes in, and a unit in arrears can have its access cards deactivated, which lands on your tenant. Expect tenant registration, a refundable move-in deposit, renovation hours and a renovation deposit if the tenant wants to change anything, limits on access cards, and rules on pets and the number of occupants. If the building has banned short-term letting, your agreement must ban it too. How the owners' bodies work is in our JMB, MC and AGM guide.
Insurance. The building's master fire policy, paid through your maintenance charges, insures the structure and the bare shell of your unit. It does not cover your renovation and fittings (a houseowner policy does) or your furniture and appliances (a householder policy does); some plans add loss of rent and liability cover. Tell the insurer the unit is tenanted so the cover matches how it is used, and ask the tenant to insure their own belongings. More in fire insurance: houseowner vs householder.
While the unit is empty you still pay the instalment, maintenance charges, assessment and quit rent. If you bought under construction, progressive interest and cash flow shows how to plan the gap between keys and the first rent, and the payment calculator gives the instalment your rent must cover.
Be careful with a prospective tenant who offers to pay the deposit after moving in, wants to pay a large sum in cash with no paperwork, refuses to give an employment letter or the current landlord's contact, wants the tenancy signed in someone else's name, or asks whether the building "allows Airbnb" while claiming personal use. Beware too of "agents" who are not BOVAEP-registered and want a fee before the tenant has signed and paid. A two-week vacancy is cheap next to months of recovering possession through the courts.
Send the Sifu the project, unit size, furnishing level and the rent you have in mind. We tell you whether the rent is realistic against what we see letting in that building and area, and flag anything missing from your tenancy terms. It is free for owners and buyers: we refer you to a licensed agent and work on a referral arrangement, explained in how we are paid. You can also ask any question through our ask-a-question tool, or browse all our guides.
Questions first-time landlords actually ask
How much deposit can a landlord ask for in Malaysia?
There is no legal cap; the market norm is two months' rent plus half a month for utilities. Some landlords ask for more from tenants with pets or without local income. Whatever you agree, write the breakdown and refund terms into the tenancy agreement.
How much is the stamp duty for a tenancy agreement?
RM1 for every RM250 (or part) of yearly rent for a tenancy of one year or less; RM3 for over one up to three years. That is RM72 on RM1,500 a month and RM144 on RM3,000 for one year, or RM216 and RM432 for two years, plus RM10 for the duplicate copy. The RM2,400 deduction was removed from 1 January 2025 by the Finance Act 2024. Stamp within 30 days of signing on LHDN's e-Duti Setem in MyTax.
Who pays the agent fee when renting out a condo?
The landlord, and the fee is capped. The BOVAEP scale allows at most 1.25 months' rent for a tenancy of up to three years, with a one-month minimum, plus 8% service tax; one month for a one-year tenancy is the usual quote. Splitting the fee with the tenant is a market habit, not a rule. Use a registered agent and agree the fee in writing before viewings start.
Do I need to declare rental income to LHDN?
Yes. Rent is taxable under section 4(d) of the Income Tax Act 1967, with no residential exemption in 2026. You are taxed on net rent after deductions such as loan interest, assessment, quit rent, maintenance charges, fire insurance and repairs (LHDN Public Ruling 12/2018). Declare it even when the net figure is zero, and keep every receipt for seven years.
Can I evict a tenant who does not pay rent?
Yes, but only through the courts. Section 7(2) of the Specific Relief Act 1950 bars you from changing the locks, removing belongings or cutting utilities yourself. You end the tenancy by notice, sue for arrears and possession, and the court's bailiff enforces the order. A stamped agreement with a clear default clause makes that faster. Act at the first missed payment, not the third.
Does the JMB need to know I have a tenant?
Almost always, yes. Most buildings require tenant registration, copies of the agreement and ICs and a refundable move-in deposit before issuing access cards. The maintenance charges remain your debt, and the by-laws bind your tenant as well as you.
Tell us the project and the unit, and whether it is furnished. We will give you an honest view of the rent it can fetch, the deposits and fees to expect, and what to put in the agreement before the tenant moves in.