Malaysia – Property Letting

How does the property letting process work in Malaysia?

The overall process of letting property in Malaysia follows a broadly recognisable sequence: market the property, screen prospective tenants, agree on terms, execute and stamp a tenancy agreement, collect deposits, and transfer the keys. While the individual steps will be familiar to most landlords, there are specific features of the Malaysian framework worth understanding before you proceed.

Marketing is primarily conducted through online property portals including PropertyGuru, iProperty, and Mudah.my, along with social media channels and local letting agents. Unlike certain markets that maintain centralised landlord or property registers, Malaysia has no national listing approval process or advertising register for residential properties.

Tenant screening is standard practice in Malaysia. Prospective tenants may be asked to provide identification, consent to a credit check, supply proof of income, and provide references. It is common for a formal offer letter or letter of intent to be exchanged between parties before the tenancy agreement itself is finalised.

The legal position on tenant rights in Malaysia is somewhat complex. No specific legislation governing residential rental agreements is currently in force, although work is underway toward introducing a long-anticipated Residential Tenancy Act in the coming years. In the interim, tenancies are governed principally by the Contracts Act 1950, the Civil Law Act 1956, and the Specific Relief Act 1950.

A tenancy agreement may be written or verbal — an oral agreement carries legal validity under Malaysian law. That said, relying on a verbal arrangement is far more difficult in practice: without a written record, resolving any dispute between landlord and tenant becomes considerably more burdensome. Though Malaysian law formally permits verbal tenancies, no landlord in practice should operate without a written agreement.

Once a written agreement is executed, stamping is required. Under the Stamp Act 1949, a tenancy agreement must be stamped to be admissible as evidence in court. Stamping must occur within 30 days of the agreement being signed — failure to meet this deadline results in a financial penalty, and an unstamped agreement cannot be used in court proceedings until that penalty is settled. Stamping is handled through the LHDN (Inland Revenue Board of Malaysia).

The National Land Code draws a distinction based on duration: any arrangement shorter than three years is classified as a “tenancy” and is the standard format for both residential and commercial rentals. Any agreement of three years or longer is defined as a “lease” and requires formal registration at the Land Office under the National Land Code 1965 to be legally effective.

A standard Malaysian tenancy agreement will typically address: the rent amount and payment schedule; the tenancy duration; the security, utility, and earnest deposits; obligations for maintenance; restrictions on subletting; permitted use of the premises; and notice periods for early termination. For landlords whose target market includes expatriates or contract workers, including a diplomatic clause can significantly reduce vacancy risk. A diplomatic clause allows a tenant to exit the tenancy early should their employment or visa status change, and it is a widely accepted feature of the Malaysian residential rental market.

What types of rental arrangements are available in Malaysia — long-term, short-term, and holiday lets?

Malaysia’s rental market falls broadly into three categories: long-term residential lets (usually 12–24 months), medium-term furnished arrangements, and short-term or holiday rentals through platforms such as Airbnb, Agoda Homes, and Booking.com. Each carries its own practical requirements and legal considerations.

Long-term residential letting is the most prevalent arrangement for foreign landlords and benefits from the most established — if still incomplete — legal framework. Tenancies of one to two years are the norm, and renewal clauses are common. These arrangements sit squarely within the scope of the Contracts Act 1950 and are stamped and documented in the usual manner.

Malaysia is in the process of developing a unified regulatory approach to short-term residential accommodation. While demand for short-stay rentals continues to grow, the rules governing operators remain a work in progress, with broader national direction anticipated.

The government’s proposed framework for Short-Term Residential Accommodation (STRA) remains under development as of August 2025. The initiative, led by the Ministry of Housing and Local Government (KPKT), aims to establish a coherent national regulatory structure for the short-term rental sector across the country.

As of mid-2025, STRA guidelines have not yet been finalised or made enforceable, which means operators continue to be subject to differing local authority rules rather than a single nationwide standard. This is a material consideration for any landlord contemplating short-term rental operations: what one local authority permits may be expressly restricted by another.

Malaysia has no single nationwide law governing short-term rentals. Regulatory requirements are determined at the local authority level and can vary considerably from one area to the next. Even in locations where a council permits short-term rental activity, a Management Corporation (MC) or Joint Management Body (JMB) may independently restrict or ban platforms such as Airbnb within its development.

Neither the Strata Management Act nor the Strata Management Regulations 2015 explicitly prohibit short-term rentals. A 2025 Court of Appeal ruling established that what the law does not forbid is permitted — meaning short-term rental activity is not inherently unlawful under that statutory scheme. However, building-level bylaws can still impose a prohibition if they have been passed with sufficient owner support.

Amendments to the Tourism Industry Act 1992 are expected to be placed before Parliament between late 2025 and early 2026. These amendments are anticipated to cover licensing procedures, insurance requirements, platform registration obligations, and the creation of a dedicated tourism court — signalling a clear trajectory toward stricter regulation of short-term rental services. Landlords intending to operate holiday lets should closely monitor updates from the Ministry of Tourism, Arts and Culture and KPKT.

What rental income can landlords expect in Malaysia, and how are rates set?

Rental pricing in Malaysia is driven primarily by free-market forces rather than legislative controls. There is no national rent cap, rent pressure zone mechanism, or mandatory indexation system in place for the private residential sector — in contrast to markets such as Germany or Ireland, where legislated rent controls apply in designated areas.

Rent may only be increased during an active tenancy where the agreement contains an explicit provision allowing for it. A rent review clause must be written into the agreement in advance; in its absence, the landlord cannot impose a mid-tenancy increase. In most cases, rent is revisited and renegotiated at renewal rather than during the fixed term.

When structuring a rent review clause, official price data can serve as a useful reference point. The Department of Statistics Malaysia (DOSM) Consumer Price Index release for January 2025 recorded “actual rental for housing” rising 1.7% year-on-year, as part of the broader housing and utilities category. Some landlords link rent reviews to the DOSM CPI figure, often with a defined cap to provide predictability for both parties.

Achievable rents and rental yields vary substantially depending on location, property type, and specification. The primary urban rental markets are Kuala Lumpur, Penang, Johor Bahru, and Kota Kinabalu. Furnished properties in city-centre locations or areas popular with expatriates typically attract a premium. For current market benchmarks, consult platforms such as PropertyGuru and iProperty, and refer to the National Property Information Centre (NAPIC) for official property market data published by the Valuation and Property Services Department (JPPH).

Policy discussions concerning the potential introduction of rent controls or transparency requirements as part of a future Residential Tenancy Act are ongoing. Landlords should watch for announcements from the Ministry of Housing and Local Government (KPKT) regarding any modifications to the existing free-market framework.

Do landlords need to provide a furnished or unfurnished property in Malaysia?

There is no statutory obligation in Malaysia for a landlord to furnish a residential property prior to letting it. The choice to let a property furnished, semi-furnished, or unfurnished rests entirely with the landlord, and all three approaches are commonplace across the market.

In practice, furnished and semi-furnished units predominate in the urban condominium and serviced apartment segment, where expatriate tenants, corporate relocations, and short-stay occupants generally expect at least white goods, air conditioning units, and basic kitchen equipment to be provided. Unfurnished properties are more typical in landed residential settings and longer-term rental arrangements within the local market.

Where furnishings are included, the tenancy agreement may incorporate a schedule detailing the fixtures, fittings, and appliances provided with the property. If the unit is rented out vacant and unfurnished, no such inventory schedule is necessary. When furnishings are included, a detailed inventory — signed by both the landlord and tenant at the commencement and conclusion of the tenancy — is strongly recommended to avoid disputes over the deposit.

The tenancy agreement should clearly set out the landlord’s responsibility to provide a habitable property with functioning fixtures, furniture, and appliances where a furnished let is offered. Furnishing standards do not currently affect how rental income is classified under Malaysian tax law, although where a landlord provides extensive ancillary services alongside accommodation — such as cleaning, concierge facilities, or linen changes — income may be reclassified as business income and treated differently for tax purposes.

Do you need a licence or registration to let a property in Malaysia?

For standard long-term residential letting, there is no mandatory landlord licence or registration requirement in Malaysia at the national level. Any property owner — including a foreign national — may let their residential property without registering with a central tenancy authority, so long as they meet their obligations under contract law, stamp duty rules, and tax legislation.

At present, no single regulatory framework or mandatory registration process exists specifically for tenancy agreements. This distinguishes Malaysia from markets such as Ireland or Scotland, where landlords are required to register with a national body — the Residential Tenancies Board and Safe Deposit Scotland, respectively — before a tenancy can commence.

The situation differs for short-term rentals. Under the developing STRA framework, properties advertised on platforms such as Airbnb may be required to obtain a business licence from the relevant local authority before they can be registered as tourism accommodation. Regulatory enforcement and oversight are expected to sit with local authorities.

It is possible that forthcoming tenancy reform legislation may impose a requirement for landlords to register as rental providers for transparency purposes. As of early 2026, however, this remains a proposal rather than enacted law. Landlords should consult their local municipal authority (Majlis Perbandaran or Dewan Bandaraya for city areas) and monitor KPKT for any new registration requirements as the legislative landscape develops.

How do you obtain a landlord licence or register as a landlord in Malaysia?

Because a national landlord registration scheme does not yet exist for long-term residential lets, the primary administrative step is stamping the tenancy agreement — a legal obligation rather than a registration formality. The process below covers this core requirement, together with tax registration for foreign landlords.

1. Draft and sign a written tenancy agreement. Although not strictly required by law, a written agreement is indispensable in practice. Engage a Malaysian solicitor to prepare or review the agreement, ensuring it addresses all necessary provisions and contains no unlawful or discriminatory terms.
2. Stamp the tenancy agreement via LHDN. The agreement must be stamped under the Stamp Act 1949 within 30 days of signing to avoid financial penalties. Stamping can be completed at any LHDN branch or online through the LHDN Stamps portal. Late stamping incurs graduated penalties: RM50 or 10% of the duty (whichever is greater) if completed within 3 months of the deadline, and RM100 or 20% of the duty (whichever is greater) beyond 3 months, as of 2025.
3. Register for a Malaysian income tax number (if not already registered). Non-resident landlords can obtain a tax identification number and file returns online at mytax.hasil.gov.my. You will need your passport, property documentation, and a Malaysian contact address.
4. Appoint a licensed Malaysian tax agent (strongly recommended for non-residents). For most foreign landlords, engaging a tax agent is the most practical approach. A licensed Malaysian tax agent will prepare and submit Form M on your behalf, with fees typically ranging from RM500 to RM1,500 per year depending on the complexity of the case, as of 2025.
5. Check local authority requirements for short-term rental. If you plan to operate a short-term or holiday rental, contact the relevant local municipal authority to establish whether a business licence or tourism registration is required in your area, as requirements differ by location and property type.
6. Review strata building bylaws. If your property is a condominium or strata-titled development, examine the building’s bylaws and consult the Management Corporation (MC) or Joint Management Body (JMB) before letting — especially where short-term rentals are concerned, as some buildings explicitly prohibit them.

What are the rules around deposits in Malaysia?

Malaysia operates a landlord-held deposit system — there is no equivalent of the UK’s Tenancy Deposit Protection (TDP) scheme or Ireland’s Residential Tenancy Board deposit model, under which deposits are held by an independent third party. Deposits are retained directly by the landlord, making the contractual terms governing their return particularly important.

The tenancy agreement should specify three distinct deposits. The security deposit functions as a guarantee that the tenant will honour the terms and conditions set out in the agreement; two months’ rent is the standard amount and is ordinarily returned to the tenant at the conclusion of the tenancy.

The earnest deposit serves as a reservation payment, confirming that the landlord will not offer the property to another party once an offer letter to rent has been issued. The utility deposit enables the landlord to cover unpaid utility bills in the event of tenant default and is refunded in full where no outstanding utility charges remain at the end of the rental period.

Industry practice in Malaysia is to charge half a month’s rent as the utility deposit. In total, a new tenant typically pays the equivalent of two and a half months’ rent upfront — covering both deposits — in addition to the first month’s rent. No statutory cap on deposit amounts currently exists, although the forthcoming Residential Tenancy Act may introduce standardisation in this area.

Where a tenant has accrued rental arrears or caused damage to the property, the landlord is entitled to retain the security deposit to cover those costs. Landlords are strongly advised to carry out a joint inspection at both the start and end of the tenancy, supported by a signed photographic inventory, to minimise the risk of deposit disputes.

Proposed tenancy reform legislation may introduce standardised deposit rules and clearer refund obligations. Monitor the KPKT website for updates on the progress of this legislation: www.kpkt.gov.my.

Who is responsible for maintenance and repairs in Malaysia?

The allocation of maintenance responsibilities between landlord and tenant in Malaysia is determined primarily by the tenancy agreement rather than by statute — a meaningful distinction from systems such as the UK’s implied repairing obligations under the Landlord and Tenant Act 1985, which impose baseline standards regardless of what the contract says. In Malaysia, the quality and clarity of the agreement itself is therefore critical.

As a general principle, the landlord bears responsibility for major structural repairs, roofing, electrical wiring, and water ingress from external pipework. The tenant is ordinarily responsible for routine upkeep and minor repairs — such as replacing lightbulbs or cleaning air-conditioning filters — as well as keeping the property in good general condition throughout the tenancy.

Where a furnished unit is let, the tenancy agreement should clearly establish that the landlord is responsible for providing a habitable and lettable property with functioning fixtures, fittings, and appliances, and for ensuring the tenant has quiet and uninterrupted enjoyment of the premises.

Malaysia does not currently impose statutory minimum habitability standards for private rental properties equivalent to the fitness-for-human-habitation requirements found in some other jurisdictions. In the absence of such standards, both parties rely on the contractual terms of the tenancy agreement and the general principles of contract law when disagreements arise. A carefully drafted maintenance clause — clearly defining who bears responsibility for which costs and at what threshold — is one of the most important protections a landlord can establish from the outset.

Where maintenance disputes cannot be resolved between the parties, recourse is available through the civil courts or through mediation. The anticipated Residential Tenancy Act is expected to introduce clearer statutory standards in this area, so landlords should keep a close watch on legislative developments.

How are letting agents used in Malaysia, and what do they charge?

Letting agents and property management companies play an active role in the Malaysian rental market, particularly in urban centres and among foreign owners who are not permanently resident in the country. Agents typically offer services ranging from tenant introduction and marketing only, through to comprehensive property management encompassing rent collection, maintenance coordination, and tenancy renewal.

In Malaysia, it is standard industry practice for the landlord to pay the letting agent’s commission. The conventional fee is equivalent to one month’s rent for a standard 12-month tenancy, though this can vary depending on the property, its location, and the scope of services agreed. Unlike the UK, where the Tenant Fees Act 2019 prohibited agents from charging certain fees to tenants, Malaysia has no equivalent legislation capping or restricting fees charged to either party — though market convention and consumer expectations shape what is typically charged in practice.

For full property management — covering day-to-day oversight, maintenance coordination, rent collection, and tenant liaison — agents commonly charge a monthly management fee, typically in the range of 8% to 10% of the monthly rental value, as of 2025. Fees vary between agents and locations; always confirm the full scope of services and the fee structure in writing before entering into an engagement.

Real estate agents in Malaysia must hold registration with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA/LPPEH). Only registered estate agents (REAs) and their designated negotiators (RENs) are legally authorised to conduct real estate agency work. Verify your agent’s registration status on the LPPEH website before making any appointment.

For non-resident landlords in particular, engaging a reputable property management company is especially important — not only for operational oversight, but to ensure ongoing compliance with local tax and tenancy obligations when you are physically absent from Malaysia.

What taxes apply to rental income in Malaysia?

Rental income derived from Malaysian property is subject to Malaysian income tax regardless of where the landlord resides. For most individual landlords who let property on a passive basis — collecting rent without providing hotel-style services — rental income falls under Section 4(d) of the Income Tax Act 1967.

Where letting activity is conducted more actively and resembles a commercial enterprise — involving multiple units, employees, and substantial ancillary services — income may instead be assessed under Section 4(a) as business income, with different rules applying to deductions and allowances.

For tax-resident landlords: Rental income forms part of the individual’s total assessable income and is taxed at the applicable progressive rate, ranging from 0% to 30% as of 2025. Tax residency is determined by physical presence; the primary test is whether an individual has been physically present in Malaysia for 182 days or more within a calendar year.

For non-resident landlords: Individuals who are non-resident for Malaysian tax purposes and who derive rental income from Malaysian property are subject to a flat rate of 30% on net rental income, as of 2025. Non-residents receive no personal reliefs, no tax-free threshold, and no progressive scaling — every ringgit of net rental income is taxed at the flat 30% rate.

Allowable deductions: Both resident and non-resident landlords may deduct qualifying expenses from gross rental income before their tax liability is calculated. The 30% non-resident rate applies to net rental income rather than gross — a distinction that can have a significant impact on the final tax bill. Deductible expenses typically include mortgage interest on the rental property, property management fees, letting agent commissions, assessment tax, quit rent, insurance premiums, and costs of repairs and maintenance incurred while the property is let.

Local property taxes: Assessment tax is a local tax based on the annual rental value of the property as assessed by the relevant local authority, generally levied at a flat rate of 6% for residential properties and payable in two instalments. Quit rent is a modest annual land tax applied to landed properties, commonly amounting to less than RM100 per year. Both are ordinarily the landlord’s liability.

Filing obligations: Rental income must be declared through the MyTax portal using the appropriate return — typically Form M for non-resident landlords. The income tax return filing deadline for individuals without business income, whether resident or non-resident, is generally 30 April of the following year.

Landlords who let Malaysian property while residing overseas may face a tax liability on that rental income in both Malaysia and their country of residence. Malaysia has concluded double taxation agreements (DTAs) with a number of countries, which determine how tax obligations are allocated between jurisdictions and aim to prevent the same income from being taxed twice. DTA provisions can be complex and vary between countries; seek advice from a licensed Malaysian tax agent and a tax adviser in your country of residence for guidance tailored to your specific circumstances.

Always consult the Inland Revenue Board of Malaysia (LHDN) and a local tax professional for current rates and requirements, as these may be amended with each annual budget.

What are the rules around ending a tenancy or evicting a tenant in Malaysia?

Bringing a tenancy to an end in Malaysia — whether at natural expiry or through early termination — is governed primarily by the terms of the tenancy agreement and, where those provisions are insufficient, by the courts. Malaysia currently has no equivalent of the UK’s Section 21 no-fault eviction procedure or Germany’s social tenancy protections, though the forthcoming Residential Tenancy Act may alter the balance between landlord and tenant rights.

At the end of a fixed-term tenancy, possession of the property reverts to the landlord unless a renewal is agreed. If a tenant remains in occupation beyond the expiry date without agreement from the landlord, a possession order from the court is required — landlords cannot take unilateral steps to remove a tenant.

A tenant who remains in occupation without the landlord’s consent after the tenancy has expired is regarded as an unlawful occupier. The landlord’s remedy is to initiate formal eviction proceedings through the court. Self-help measures — such as changing the locks, removing the tenant’s belongings, or cutting off utilities — are not recommended and can expose the landlord to legal liability.

Under Malaysian law, a court order must be obtained before an eviction can be carried out. Changing locks or cutting off utilities without court authorisation is unlawful. This principle is consistent with the Specific Relief Act 1950, which prohibits recovery of possession without a court order.

Many tenancy agreements include a termination clause requiring two to three months’ written notice from either party. In the absence of such a clause, a tenant who exits early may forfeit their deposit. In some circumstances, landlords and tenants may negotiate a mutual termination arrangement.

Where a tenant falls into rental arrears, the landlord may pursue a court action for possession and recovery of the outstanding amounts, or alternatively apply for a writ of distress. A distress action directs a sheriff or bailiff to seize the tenant’s movable property, which is then sold with the proceeds applied against the rental debt. This process is governed by the Distress Act 1951.

Based on early indications, proposed tenancy reform legislation may introduce more stringent eviction procedures — potentially restricting no-reason terminations — along with requirements for transparent rent increases and clearly defined notice obligations. Landlords should follow developments from KPKT and take legal advice if their tenancy situation is likely to be affected by any forthcoming changes.

What should expat landlords know about managing property remotely in Malaysia?

Managing a Malaysian rental property from abroad is entirely achievable, but calls for careful planning around legal authority, tax compliance, and day-to-day operational oversight. Foreign nationals who own Malaysian property and let it while living outside the country face a specific set of obligations that differ from those applying to resident landlords.

Tax filing as a non-resident: Foreigners earning rental income from Malaysian property are required to declare that income to the Malaysian tax authorities. No personal reliefs are available to non-residents, and Form M is the applicable return. In the case of residential property rental, the landlord is generally responsible for filing and paying the tax directly rather than having it withheld at source. All filings must now be submitted electronically through the MyTax portal.

Appointing a tax agent: For most foreign landlords, engaging a licensed Malaysian tax agent is the most practical course of action. The agent will prepare and submit Form M on your behalf and manage any correspondence with LHDN. This is particularly relevant given that from Year of Assessment 2024, LHDN mandates electronic submission for all taxpayers.

Power of attorney: Foreign owners who wish to authorise a Malaysian-based representative — whether a family member, solicitor, or property manager — to handle property matters and sign documents on their behalf may do so through a Power of Attorney. This document should be properly prepared by a Malaysian solicitor and, if signed overseas, may need to be notarised and apostilled before it carries legal effect in Malaysia. Consult a Malaysian lawyer for the current requirements applicable to your situation.

Property management companies: Engaging a licensed property management company is the most practical solution for landlords operating remotely. A full management service will handle tenant liaison, rent collection, maintenance, and renewal administration, removing the need for the owner to be physically present. Confirm that any company you engage employs estate agents who are registered under LPPEH.

Repatriating rental income: Malaysia does not currently impose exchange controls that prevent individuals from remitting rental income overseas. Non-resident landlords may transfer rental proceeds in foreign currency through a Malaysian bank account. Malaysian tax must, however, be settled before funds are remitted. Consult Bank Negara Malaysia and a tax adviser for current remittance and reporting rules, which are subject to change.

Double taxation: A double taxation agreement (DTA) is a treaty between two countries designed to allocate taxing rights over specific categories of income and prevent the same income from being taxed twice by both jurisdictions. Where no DTA applies, an individual may face tax on the same income in two countries simultaneously. DTA provisions can be intricate and differ between countries, so seeking advice from a licensed tax agent is strongly recommended. Malaysia has concluded DTAs with a number of major countries; consult the LHDN website for the current list.

Frequently asked questions about letting property in Malaysia

Can a non-resident own and let property in Malaysia?

Yes. Foreign nationals may own and let residential property in Malaysia, subject to minimum purchase price thresholds applicable to foreign buyers that are determined at the state level. Once ownership is established, letting the property is legally permitted. Non-resident landlords are subject to a flat income tax rate of 30% on net rental income (as of 2025) and must lodge an annual return with LHDN using Form M. For current foreign ownership rules, consult the relevant state land office or the National Property Information Centre (NAPIC).

Do I need a local agent to let my property in Malaysia?

There is no legal requirement to use a letting agent for long-term residential lets. However, for non-resident landlords, a licensed property management company offers both practical and compliance advantages — managing tenant finding, rent collection, maintenance coordination, and tax documentation from abroad. If you appoint an agent, verify that they are registered with LPPEH (the Board of Valuers, Appraisers, Estate Agents and Property Managers) at www.lppeh.gov.my.

Does a Malaysian tenancy agreement need to be stamped, and what does it cost?

Yes — stamping is a legal requirement. A tenancy agreement must be stamped under the Stamp Act 1949 within 30 days of signing; failure to comply results in a financial penalty. Stamp duty is calculated on a sliding scale based on the annual rental value. Stamping can be completed at an LHDN branch or through the LHDN Stamps portal. Consult the LHDN website for the current duty schedule, as rates are subject to change.

Is there a tenancy deposit protection scheme in Malaysia?

No. Malaysia does not currently operate a centralised tenancy deposit protection (TDP) scheme comparable to those in the UK or Ireland. Deposits are held directly by the landlord throughout the tenancy. The standard security deposit is two months’ rent, plus half a month’s rent as a utility deposit (as of 2025). A joint inspection report and a signed inventory at both the start and end of the tenancy are the principal practical safeguards against deposit disputes.

Is Airbnb legal in Malaysia?

As of 2026, short-term rental (STR) in Malaysia is in a period of transition — the regulatory framework is being formalised, but many proposed changes remain in draft form. There is no single nationwide law for short-term rentals, and each local authority applies its own rules, meaning compliance requirements vary considerably between areas. In addition, strata building bylaws may prohibit short-term letting even where the relevant local council permits it. Check with your local municipal authority and your building’s management body before listing your property on any platform.

What happens if my tenant refuses to leave at the end of the tenancy?

A tenant who remains in occupation without the landlord’s consent after the tenancy has expired is treated as an unlawful occupier. The landlord’s remedy is to commence eviction proceedings through the court. Self-help measures — such as changing the locks or removing the tenant’s belongings — are not recommended, as they can expose the landlord to legal liability. Engage a Malaysian solicitor to manage the eviction process through the appropriate legal channels.

What deductions can I claim against my rental income for tax purposes?

Both resident and non-resident landlords may deduct qualifying expenses from gross rental income before their tax liability is assessed. For non-resident landlords, the flat 30% rate applies to net rental income rather than gross — a distinction that can significantly affect the overall tax position. Allowable deductions typically include mortgage interest on the rental property, property management fees, agent commissions, assessment tax, quit rent, insurance premiums, and repair costs incurred during the let. Pre-rental renovation expenditure is generally not deductible. Seek advice from a licensed Malaysian tax agent for guidance specific to your circumstances.

Will Malaysia introduce a Residential Tenancy Act, and how might it affect landlords?

Work is underway toward introducing a long-anticipated Residential Tenancy Act in Malaysia, intended to protect tenants while preserving a fair operating environment for landlords. Indications suggest the legislation may include stricter eviction procedures, requirements for transparent rent increase notices, and more clearly defined deposit rules. The legislative timeline has not been confirmed as of early 2026. Monitor updates from the Ministry of Housing and Local Government (KPKT) at www.kpkt.gov.my.