Rental Agreement Template for Malaysia

A Rental Agreement is a binding contract between a property owner (landlord) and a tenant in Malaysia, spelling out the terms for renting residential or commercial space. It covers essential details like monthly rent, security deposits, maintenance responsibilities, and the rental duration - typically ranging from 12 to 36 months under local practice.

Under Malaysian law, these agreements must be stamped by the Inland Revenue Board to be legally enforceable in court. While verbal tenancies are possible, written agreements offer crucial protection for both parties, especially when dealing with issues like property damage, rental increases, or early termination. They're particularly important in major cities like Kuala Lumpur and Penang, where rental disputes are common.

Use a Rental Agreement before handing over your property keys to any tenant in Malaysia. This legal safeguard becomes essential when renting out residential homes, shop lots, or office spaces - especially in high-value areas like KLCC, Bangsar, or Georgetown where property disputes can become costly.

The agreement needs to be in place before the tenant moves in or starts any renovation work. It's particularly important when dealing with foreign tenants, multiple occupants, or commercial leases where specific usage terms need documentation. Having it ready before accepting the security deposit helps prevent misunderstandings about payment schedules, maintenance responsibilities, and utility charges.

• Tenancy Agreement: Standard residential rental contract, commonly used for houses and apartments with comprehensive living space terms
• Lease Contract Agreement: More formal version for commercial properties, typically with longer terms and specific business use clauses
• Room Rental Agreement: Simplified version for single room rentals, often used in shared housing situations
• Sublease Agreement: Used when existing tenants rent out part or all of their rented space to another party
• Equipment Rental Agreement: Specialized contract for renting machinery, tools, or business equipment

• Property Owners/Landlords: Individual homeowners, property investment companies, or commercial building owners who want to protect their rental income and property condition
• Tenants: Both Malaysian citizens and foreigners renting residential or commercial spaces, including students, professionals, and business owners
• Real Estate Agents: Licensed professionals who facilitate rental transactions and often prepare initial agreement drafts
• Property Lawyers: Legal experts who review, modify, or draft comprehensive agreements, especially for high-value commercial properties
• Property Management Companies: Organizations handling multiple rental properties and coordinating agreements on behalf of owners

• Property Details: Gather complete address, property type, and specific included features or facilities
• Party Information: Collect NRIC/passport numbers, contact details, and addresses for both landlord and tenant
• Rental Terms: Define monthly rent amount, payment method, due dates, and security deposit details
• Duration Planning: Determine tenancy period, start date, and renewal conditions
• Utility Arrangements: Clarify responsibility for water, electricity, internet bills, and maintenance costs
• House Rules: List specific restrictions on pets, renovations, or subletting
• Documentation: Prepare copies of property title, identification documents, and utility bills

• Party Identification: Full legal names, NRIC/passport numbers, and current addresses of landlord and tenant
• Property Description: Complete address and detailed description of the rental property, including fixtures and fittings
• Financial Terms: Rental amount, security deposit, utility charges, and payment schedule clearly stated in Malaysian Ringgit
• Tenancy Period: Specific start and end dates, with renewal and termination conditions
• Maintenance Clause: Clear division of repair and maintenance responsibilities between parties
• Usage Rights: Permitted and prohibited activities, including subletting restrictions
• Dispute Resolution: Jurisdiction clause specifying Malaysian courts and applicable state laws

A Rental Agreement differs significantly from an Agency Agreement in Malaysian property law, though both are common in real estate transactions. While a Rental Agreement establishes the direct relationship between landlord and tenant, an Agency Agreement outlines the relationship between a property owner and their appointed real estate agent.

• Duration and Purpose: Rental Agreements typically last 1-3 years and govern property usage, while Agency Agreements often run 3-6 months and focus on marketing and transaction services
• Financial Terms: Rental Agreements detail monthly rent and deposits, whereas Agency Agreements specify commission rates and marketing fees
• Party Obligations: Rental Agreements outline tenant and landlord responsibilities, while Agency Agreements define the agent's duties in finding suitable tenants or buyers
• Legal Protection: Rental Agreements protect property usage rights, while Agency Agreements safeguard the agent's right to commission and exclusive listing rights