How to Rent a Property in Malaysia in 2025: A Complete Step-by-Step Guide for Locals & Foreigners
Looking to rent a house in Malaysia in 2025? Whether you’re a local resident or a foreigner, understanding the rental process is crucial to avoid costly mistakes. This guide covers every essential step—from deposits and contracts to legal fees and moving in—so you can rent with confidence.
Step 1: Pay the Earnest Deposit
Once you’ve found a property you like, the first step is to pay an earnest deposit, usually equivalent to 1 month’s rent. This deposit:
- Secures the property and takes it off the market
- Prevents the agent from showing it to other potential tenants
- Is non-refundable if you change your mind
Make sure you’re 100% committed before making this payment.
Step 2: Sign the Tenancy Agreement
Once the landlord agrees, you’ll move on to signing the Tenancy Agreement. At this stage, you will typically need to pay:
- Security Deposit – 2 months’ rent (refundable)
- Utility Deposit – 0.5 month’s rent (refundable)
Before signing, double-check that the agreement includes:
- Full names of both landlord and tenant
- Accurate property address
- Rental term and start date
- Monthly rental and total deposit amounts
- Any house rules or conditions
Step 3: Understand the Legal Fees
Malaysia currently does not have specific laws to protect landlords or tenants, so a properly signed Tenancy Agreement is your main protection.
To make the agreement legally binding, it must be stamped by the Inland Revenue Board (LHDN). You’ll need to pay:
a) Stamp Duty (Tenancy Agreement / Lease Agreement)
The cost depends on the rental duration:
| Rental Term | Stamp Duty (per RM250 of annual rent) |
|---|---|
| Less than 1 year | RM 1.00 |
| 1 to less than 3 years | RM 3.00 |
| 3 to less than 5 years | RM 5.00 |
| 5 years or more | RM 7.00 |
Note: The previous RM 2,400 annual exemption is fully abolished as of January 1, 2025
Annual rent = RM1,900 × 12 = RM22,800
| Lease Term | Calculation | Result |
|---|---|---|
| ≤ 1 year | RM22,800 ÷ 250 × RM1 | RM91.2 |
| 1–3 years | RM22,800 ÷ 250 × RM3 | RM273.6 |
| > 3 years | RM22,800 ÷ 250 × RM5 | RM456 |
The stamp duty is the same for both locals and foreigners.
b) Processing Fee
| Monthly Rent | Processing Fee |
|---|---|
| Below RM1,000 | RM 100 |
| RM1,000 – RM1,999 | RM 150 |
| RM3,000 – RM3,999 | RM 250 |
| RM4,000 and above | RM 300 |
This is a one-time fee usually charged by agents or landlords, based on monthly rent:
Note: These fees may vary depending on the agent or landlord.
Step 4: Inspect and Move In
Before moving in, inspect the property thoroughly to ensure everything is in the agreed condition. Take photos or videos as evidence, and make sure the keys, appliances, and utilities are functioning as promised.
Final Tip:
Whether you’re a tenant or a landlord, always sign a proper tenancy agreement to protect your rights. Renting a property in Malaysia is straightforward when you know the process and costs involved.
Ready to find your next home? Let us guide you through it—contact us today for rental assistance!
