Description
- A Tenancy Agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that outlines the terms and conditions for renting a property. It establishes the rights and obligations of both parties regarding the use, maintenance, and payment for the property.
GOV Department
- Kementerian Perumahan dan Kerajaan Tempatan (KPKT) / Ministry of Housing and Local Government
License Name (Malay)
- Perjanjian Penyewaan
Details
- Specifies key terms, including the rental amount, payment schedule, duration of the tenancy, and security deposit.
- Defines the responsibilities of both the landlord and the tenant for property maintenance and repairs.
- Includes clauses for termination, renewal, and penalties for breach of agreement.
- Addresses additional conditions such as subletting, usage restrictions, and utilities management.
- Ensures compliance with the Contracts Act 1950 and other housing regulations.
Important Rules
- Both parties must sign the agreement, and it should be stamped under the Stamp Act 1949 to be legally enforceable.
- Security deposits should not exceed two months’ rent unless otherwise agreed.
- The landlord must provide a habitable property and ensure the tenant's peaceful enjoyment of the premises.
- The tenant must pay rent on time, maintain the property, and abide by the usage terms.
- Any modifications or early termination of the agreement must follow the specified procedures.
Compound & Punishment
- Failure to properly document or stamp the agreement may result in:
- The agreement being inadmissible in court during disputes.
- Fines or penalties under the Stamp Act 1949.
- Breach of tenancy terms, such as non-payment of rent or unauthorized use of the property, may lead to:
- Termination of the tenancy.
- Legal action and compensation claims by the aggrieved party.
Advisor
Penny Lim , Legal Consulting
Ms. Penny is responsible for identifying possible legal issues and implementing solutions in the areas of government regulation, customer protection, and fair employment. Legal Counsel. Ms. Penny can advise on legal issues such as government and business permits, review legal documents before signing them, and complete legal research as needed by the company
Commonly Asked Questions
A Tenancy Agreement is a legal contract between a landlord and a tenant that states the terms and conditions of renting a property — such as rent amount, payment date, duration, and responsibilities.
Yes. It’s highly recommended to have a written Tenancy Agreement to protect both landlord and tenant, and to avoid disputes about payment, maintenance, or property use.
Most tenancy agreements in Malaysia last for 1 or 2 years, but the duration can be shorter or longer, depending on what both parties agree on.
A good agreement should include:
- Details of landlord and tenant
- Property address
- Rental amount and payment terms
- Tenancy period
- Deposit details (security and utility)
- Maintenance and repair responsibilities
- Termination and renewal clauses
Yes. All Tenancy Agreements in Malaysia must be stamped at LHDN (Lembaga Hasil Dalam Negeri) to make it legally valid and admissible in court.
Stamp duty is calculated based on the monthly rent and tenancy period.
Example:
- RM1 for every RM250 of annual rent for the first RM2,400
- RM2 for every RM250 of annual rent for the next RM2,400
- RM4 for every RM250 of annual rent for the balance
By common practice in Malaysia, the tenant usually pays for the stamp duty and agreement preparation fee, unless both parties agree otherwise.
Yes. Before the tenancy expires, both landlord and tenant can renew the agreement with revised terms or same conditions, and stamp it again at LHDN.
Without a written agreement, it’s hard to prove terms or protect your rights if a dispute happens.
Both parties will have limited legal protection in case of late payment or property damage.
Yes, but it depends on the termination clause stated in the agreement.
Usually, you need to give advance notice (1–2 months) or forfeit part of the deposit if you end the tenancy early.