Frequently Asked Questions

Standard practice is:

• 2 months’ rent = security deposit

• 1 month rent = advance rent

• 0.5 month rent = utility deposit
  📌 So total = ~3 months’ rent upfront for Residential Properties.

Yes. A signed tenancy agreement protects both the landlord and tenant.
It should include:

• Duration (typically 1–2 years)

• Monthly rent and due date

• Notice period (usually 2 months)

• Rules on repairs, subletting, termination

Yes. The tenant pays stamp duty to LHDN (Inland Revenue Board).

You may lose your security deposit or need to pay remaining months, depending on the tenancy agreement.

When renting a property, it’s important to understand the standard terms and conditions typically included in a tenancy agreement. 

1. Property Details

• Description: A detailed description of the property being rented, including its address and any specific features or amenities.

• Condition: The current state of the property, including any furniture, fixtures, or appliances provided.

2. Rental Amount and Payment Terms

• Monthly Rent: The agreed-upon monthly rent amount and the due date for payments.

• Payment Method: Accepted methods of payment (e.g., bank transfer, check, cash).

• Late Fees: Any penalties for late payments.

3. Security Deposit

• Amount: The amount required as a security deposit, usually equivalent to one or two months’ rent.

• Purpose: To cover any damages or unpaid rent at the end of the tenancy.

4. Tenancy Period

• Duration: The length of the lease term (e.g., one year, six months).

• Renewal Option: Terms for renewing the lease, including notice periods and any changes in rent.

5. Maintenance and Repairs

• Landlord Responsibilities: What repairs and maintenance the landlord is responsible for.

• Tenant Responsibilities: What repairs and maintenance the tenant is responsible for.

6. Utilities and Services

• Included Utilities: Which utilities (e.g., water, electricity) are included in the rent.

• Tenant’s Responsibility: Any utilities or services the tenant is responsible for.

7. Termination and Eviction

• Termination Clause: Conditions under which the tenancy can be terminated by either party.

• Notice Period: The required notice period for terminating the lease.

• Eviction Process: The legal process for eviction if the tenant breaches the agreement.

8. Other Terms

• Subletting: Whether the tenant is allowed to sublet the property.

• Pets: Policies regarding pets, including any additional fees or restrictions.

• Insurance: Requirements for tenant’s insurance.

The payment terms for renting residential and commercial properties can differ significantly.

Residential Properties:

• Security Deposit: Typically equivalent to two months’ rent. It’s held by the landlord and returned at the end of the lease, provided there are no damages or unpaid rent.
• Advance Rent: Often, the first month’s rent is paid upfront before moving in.
• Monthly Rent: Rent is usually paid on a monthly basis, either at the beginning or end of the month.
• Late Fees: There are often penalties for late rent payments, which are specified in the lease agreement.
• Utilities: Depending on the agreement, tenants might pay for utilities such as water, electricity, gas, and internet separately.
• Maintenance Fees: In some cases, tenants may be responsible for minor maintenance and repairs, while major repairs are handled by the landlord.

Commercial Properties:

• Security Deposit: Usually higher than residential properties and can be equivalent to several months’ rent, depending on the lease agreement.
• Advance Rent: Commercial leases may require advance payment of several months’ rent or even a full year’s rent upfront.
• Rent Payment Frequency: Rent can be paid monthly, quarterly, or annually, depending on the lease terms.
• Base Rent and Additional Rent: Commercial leases often include a base rent plus additional charges for operating expenses
• Late Fees: Similar to residential leases, late fees are imposed for delayed rent payments.
• Utilities and Services: Tenants usually pay for their own utilities and services, and may also contribute to common area maintenance (CAM) charges.
• Maintenance and Repairs: Tenants might be responsible for maintaining and repairing their rented space, while the landlord maintains common areas and building exteriors.
• Renewal and Rent Escalation: Commercial leases often include clauses for lease renewal and rent escalation, where the rent may increase periodically.

• Tenant: Minor fixes (lightbulbs, clogged drains)

• Landlord: Major repairs (plumbing, air-cond, leaks)
  ☑️ Always clarify this in the tenancy agreement.

Depends. There are 3 types:

• Fully furnished: Everything included (furniture, appliances, even utensils)

• Partially furnished: Basic fixtures (fans, lights, wardrobes, kitchen cabinets)

• Unfurnished: Bare unit

No. Rent can only be revised at the end of the tenancy unless stated otherwise in the agreement.

Yes. Rental income is taxable in Malaysia.
You can deduct:

• Maintenance costs

• Quit rent

• Property management fees

• Mortgage interest
  🏦 Declare under Section 4(d) of Income Tax Act.

Yes — must provide valid ID & visa