Introduction : Tenancy Agreement Guidance
Many landlords in Malaysia still rent out properties without a proper tenancy agreement,often relying on WhatsApp messages, verbal promises, or outdated templates.
But in 2025, rental disputes are rising due to vague or illegal terms, missing signatures, and tenants refusing to vacate.
As a law firm handling tenancy disputes, we’ve seen it all,from landlords unable to recover deposits, to tenants overstaying rent-free for months.
This guide explains everything Malaysian landlords need to include in a legally valid tenancy agreement—based on current 2025 legal practices.
Whether you’re renting out a room, condo, or commercial shop, this article will help you avoid legal headaches and protect your rights.
1. Is a Written Tenancy Agreement Required in Malaysia?
Technically, you could rent out a property in Malaysia without a written tenancy agreement. But should you? Absolutely not.
The reality is, without something in writing, you’re opening the door to all sorts of misunderstandings. What if the tenant claims they only agreed to stay for six months instead of twelve? What if they say the deposit was only one month instead of two? Without a written agreement, it becomes your word against theirs.
Courts in Malaysia can consider verbal agreements, but enforcing one is like trying to hold water with a net. A signed tenancy agreement provides clarity, protects both parties, and most importantly,makes sure you have something solid to fall back on if things go south.
In today’s world of WhatsApp conversations and screenshot evidence, landlords often assume that’s enough. It’s not. Those messages might show you had an arrangement, but they don’t replace a legally sound, properly structured tenancy agreement.
If you’re renting out your property in 2025, a clear, lawyer-drafted agreement isn’t just helpful,it’s your safety net.
Important: To be admissible in court, a tenancy agreement must be stamped under the Stamp Act 1949. Stamping must be done within 30 days of signing, or you’ll face a penalty. An unstamped agreement is not valid for court use until penalty is paid.
2. Must-Have Clauses in a 2025 Tenancy Agreement
a) Rental Amount and Payment Terms
Specify:
Monthly rent
Due date
Payment method (e.g. online bank transfer)
Late payment penalties
Example: “The Tenant shall pay RM1,500 by the 3rd day of each month to the Landlord’s bank account.”
b) Security Deposit
Standard in Malaysia:
2 months’ rent for security
0.5 month for utilities
State:
What the deposit may be used for (unpaid rent, damages, cleaning)
Refund timeline (commonly 30 days after handover)
That refund is subject to joint inspection
Tip: Include a clause for a joint inspection at the end of tenancy to avoid deposit disputes.
c) Duration and Termination
Include:
Start and end dates
Whether renewable or fixed
Notice period for early termination (e.g. 2 months)
Penalty clause for early termination
d) Responsibilities of Landlord & Tenant
Define who is responsible for:
Utilities (electricity, water, internet)
Minor repairs (tenant typically covers below RM150)
Aircon servicing, general upkeep
Also include:
Quiet Enjoyment: Tenant has the right to live peacefully; landlord must give notice before entry.
Visitors: Landlord may limit guest stays (e.g. max 7 days without written approval).
No Subletting: Prohibit the tenant from subletting without permission.
e) Breach and Legal Action
Mention what is considered a breach, such as:
Unpaid rent beyond 14 days
Illegal subletting
Damaging property
Include clause: “If rent is overdue by 14 days and not resolved within 7 days of written notice, the Landlord may initiate legal proceedings for possession.”
Under Malaysian law, a landlord must get a court order before eviction. Changing locks or cutting utilities without court approval is illegal.
f) Handover and Property Condition
Always:
Document the condition of the unit and contents in a handover form
List keys, cards, access fobs
Take photos/videos
Include clause requiring joint inspection during handover and termination.
3. Common Mistakes That Lead to Legal Trouble
Many tenancy disputes in Malaysia do not start with bad tenants or unreasonable landlords,they start with poor documentation and avoidable legal mistakes. Over the years, we have handled numerous landlord and tenant disputes that could have been resolved early, or avoided entirely, with proper legal planning.
Common mistakes include:
Using outdated or copied templates from forums
Many landlords rely on free templates found online or copied from friends. These templates are often outdated, incomplete, or inconsistent with current legal practices. When disputes arise, such documents provide little protection and frequently fail under legal scrutiny.
No signed written agreement
Verbal agreements or WhatsApp arrangements may seem convenient, but they are highly risky. Without a signed tenancy agreement, enforcing rental terms, recovering deposits, or taking legal action becomes significantly more difficult—often leading to costly landlord and tenant disputes.
Missing or vague clauses (especially deposits and termination)
Unclear wording on security deposits, utilities, early termination, or inspection rights is one of the biggest causes of conflict. These gaps commonly lead to arguments over unpaid rent, damages, and refunds—issues that often require a Letter of Demand (LOD) to formally assert the landlord’s rights.
Unstamped tenancy agreements
Under the Stamp Act 1949, tenancy agreements must be stamped within the prescribed timeframe. An unstamped agreement cannot be relied upon in court unless penalties are paid, which delays enforcement and weakens the landlord’s position in legal proceedings.
Illegal or discriminatory clauses
Clauses such as “no children,” “no foreigners,” or absolute eviction rights may appear in poorly drafted agreements. These clauses are often unenforceable and can backfire, undermining the landlord’s case if the matter escalates into legal action or debt recovery proceedings for unpaid rent.
In many cases, these mistakes only come to light after rent stops being paid or the tenant refuses to vacate—by then, landlords are forced to seek formal debt recovery or litigation to regain control of their property.
4. Are WhatsApp Agreements Legal in Malaysia?
Many landlords use WhatsApp to agree on terms and skip formal paperwork. While this may work in theory, it is highly risky.
WhatsApp texts or PDF agreements may be accepted as evidence of an arrangement, but without a stamped, signed agreement:
You can’t enforce it in court easily
You can’t file for eviction or deposit recovery smoothly
Bottom line: WhatsApp messages are not a substitute for a proper tenancy agreement.
5. Should You Hire a Lawyer to Draft Your Tenancy Agreement?
Drafting a tenancy agreement may seem simple, but the smallest legal oversight can cost you thousands. Whether it’s an unclear clause, missing obligation, or illegal term, a poorly written agreement can lead to disputes, unpaid rent, or costly eviction delays.
Here’s why smart landlords choose to engage a lawyer:
Customised Protection – Every property is different. We draft terms that fit your specific rental (e.g. condo, shoplot, single room, co-living).
Current Legal Compliance – Our agreements follow the latest Malaysian tenancy practices and avoid illegal or discriminatory clauses.
Stamping Advice Included – Many landlords don’t know how or where to stamp their agreements. We guide you step-by-step.
Fast Delivery – Receive a fully prepared agreement within 2–3 working days
FAQs
Q1: Can a landlord increase rent during a tenancy?
Only if the agreement allows it. Otherwise, both parties must agree or wait for renewal.
Q2: Is stamping required?
Yes. Under the Stamp Act 1949, tenancy agreements must be stamped within 30 days of signing. Without this, it cannot be used in court unless penalty is paid.
Q3: Can a landlord evict without a court order?
No. In Malaysia, landlords must apply to the court to recover possession. Self-help actions like changing locks are illegal.
Get Your Legally Binding Tenancy Agreement
Avoid costly disputes and protect your property with a professionally drafted agreement.
📞 Contact us now for a free consultation with our legal team and get your business contracts professionally drafted.
🔍 Need a solid business agreement? Contact us at below Whatsapp Button