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01
Why a written tenancy agreement matters
Oral arrangements can become difficult when rent is unpaid, the property is damaged, a party terminates early, or deposits are disputed. A written agreement records what the landlord and tenant agreed and can support banking, tax, audit or company records.
Protect rent and property
- Set rent, deposits and late-payment handling
- Record repairs, damage and prohibited acts
- Provide a basis for recovery or claims if issues arise
Protect use and deposits
- Confirm the term, renewal and termination rights
- Reduce sudden eviction or unexpected rent changes
- Clarify when deposits may be deducted or refunded
02
What details should be included?
The first part of the agreement should identify the parties and the property clearly. The clearer the details, the easier it is to communicate and enforce the arrangement.
Full name, NRIC/passport, phone number, email, address and, for company tenants, company name and registration number.
Full address, unit number, property type, rental scope, parking, furnishings, appliances and fixtures.
Residential, office, retail, warehouse or another use. Commercial uses may require management, local authority or licensing checks.
Keys, inventory list, handover photos, property condition and special terms.
03
Term, renewal and early termination
The agreement should state the start date, end date, signing date and whether renewal is allowed. Residential and commercial tenancies are commonly one to three years; arrangements exceeding three years may involve different lease considerations.
Dates
State when the tenancy starts and ends to avoid confusion over handover and rent periods.
Renewal terms
Record whether renewal is available, the notice period and whether rent will be renegotiated.
Early exit
State when either party may terminate early and how deposits will be handled.
04
Rent, payment method and deposits
Payment terms should be specific. Record monthly rent, due date, payment method, bank account, late-payment handling and all deposit amounts.
Security deposit
Commonly used as security for performance and damage claims. The actual amount depends on the agreed terms.
Earnest deposit
Often used to secure the property. Whether it is refundable should be clearly stated.
Utility deposit
Used to cover utility risks and typically reconciled against outstanding bills at the end.
Refund conditions
Record inspection, repair deductions, rental arrears set-off and refund timelines.
Deposit practice is not one-size-fits-all
Market practice is useful, but the final terms depend on the agreement, property type, landlord requirements and negotiations. The key is to state the amount, purpose and refund conditions clearly.
05
Landlord and tenant obligations
The tenant usually handles
- Paying rent and utilities on time
- Using the property legally and for the agreed purpose
- Not renovating, subletting or changing use without consent
- Taking care of furnishings, appliances and interiors
- Informing the landlord of serious repairs or defects
The landlord usually handles
- Delivering premises fit for the agreed use
- Major repairs falling under the landlord's responsibility
- Ensuring supplied furniture and appliances match the agreed condition
- Respecting the tenant's quiet enjoyment during the term
- Handling deposit deductions and refunds according to the agreement
06
Stamp duty, administration and legal fees
After signing, a tenancy agreement is typically stamped. A stamped agreement is more complete when you need to use it formally or as supporting evidence.
RM1 / RM250
Generally applied to annual rent after an RM2,400 exemption. Confirm the final calculation with LHDN.
RM2 / RM250
A higher rate is generally used for terms above one year and up to three years.
RM3 / RM250
Longer arrangements may involve lease considerations and should be reviewed professionally.
If a lawyer drafts or witnesses the agreement, legal fees may apply separately. Commercial tenancies, complex clauses or longer terms should be quoted in advance.
07
Extra points when a company rents premises
If the tenant is a Sdn. Bhd., LLP or another business entity, the tenancy agreement may affect bank account opening, business licences, audit, tax deductions and business-address evidence.
The company name, registration number, signatory and authority documents should match.
Banks and licensing bodies often focus on the actual operating address, not only the registered office.
Some banks, landlords or commercial arrangements may require a board resolution or signing authority.
Whether rent, service charges, repairs or renovation costs are deductible depends on purpose, documents and tax rules.
Renting an office under your company name?
We can help you check company documents, resolutions and address usage.
08
Sources and disclaimer
This guide is for general educational purposes only and is not legal, tax or property advice. Tenancy terms, stamp duty, legal fees, deposits and dispute handling should be assessed based on your facts, current law and professional advice.