A Malaysian tenancy agreement for a JB condo should cover at least 15 points: parties, unit and car park, rent and due date, deposits and refund timeline, term and renewal option, early termination (including a diplomatic clause), repairs split, utilities, use and occupants, subletting, access, inventory, insurance, default and dispute terms, and stamping. It must be stamped within 30 days: since 1 January 2025 duty is RM1, RM3, RM5 or RM7 per RM250 of annual rent depending on the lease length, with no RM2,400 exemption. Malaysia still has no Residential Tenancy Act in force, so the agreement itself sets most of the rules.
“Can I just use a template from the internet?” is one of the most common questions JB landlords and tenants ask. You can start from one, but a template does not know that your tenant crosses the Causeway every morning, that your building bans short stays, or that your air-conditioners are three years old. A tenancy agreement in Malaysia is the main document that protects both of you, because there is still no dedicated tenancy law to fall back on.
This checklist goes clause by clause through what a Malaysian tenancy agreement for a JB condo should contain, how much stamp duty you pay in 2025 and 2026, how deposits, renewals and early termination usually work, who fixes what, and where the long-awaited Residential Tenancy Act stands. It is written for landlords and tenants alike. Tenants looking for the wider picture of renting near the RTS can read our tenant guide to renting near the JB RTS and CIQ; landlords choosing a tenant first should see our tenant screening guide for JB.
Is there a Residential Tenancy Act in Malaysia yet?
Not yet. As of November 2026 Malaysia has no dedicated residential tenancy law in force, so the rights of landlords and tenants come mainly from the signed agreement and general laws such as the Contracts Act 1950 and the Specific Relief Act 1950.
A Residential Tenancy Act was first proposed in 2019 under the National Housing Policy. In February 2026 Housing and Local Government Minister Nga Kor Ming told EdgeProp that it had reached its final stage and that he hoped it would be tabled within the year. In August 2026, when the National Housing Policy 2026–2035 was launched, Malay Mail reported the rental law as one of three new housing laws the ministry plans to draft, intended to balance the interests of property owners and tenants, without a fixed date.
What this means for you: until a new law is passed, write everything that matters into the agreement. If a tenancy tribunal or new deposit rules arrive later, a clear, stamped agreement will still be the starting point.
Tenancy agreement checklist: 15 clauses every JB agreement needs
The clauses below cover the money, the time, the condition of the unit and how the tenancy ends. Tick each one before you sign.
| Clause | What it should say | Why it matters |
|---|---|---|
| 1. Parties | Landlord’s name exactly as on the title or SPA; tenant’s name and MyKad or passport number | Proves the landlord has the right to let, and identifies who is liable |
| 2. Property | Full unit address, parcel number, car park bay, storage, access cards | Avoids disputes over parking and cards |
| 3. Rent | Monthly amount, due date, payment account, late-payment charge | The core obligation; a clean bank record helps both sides |
| 4. Deposits | Security, utility and card deposits, and the number of days for refund after move-out | The most common source of disputes |
| 5. Term | Start and end dates | Sets the stamp duty band and notice periods |
| 6. Renewal option | Whether the tenant can renew, how much notice, how the new rent is set | Avoids last-minute uncertainty |
| 7. Early termination | Notice period, minimum stay, diplomatic clause, what happens to the deposit | Critical for tenants whose Singapore job may change |
| 8. Repairs and maintenance | Who pays for what, with a ringgit threshold | Prevents arguments over every broken item |
| 9. Utilities and charges | Who pays electricity, water, internet, maintenance fees, quit rent, assessment | Clear monthly budgeting |
| 10. Use and occupants | Residential use only, maximum occupants, pets | Protects the unit and keeps within building by-laws |
| 11. Subletting and short stays | Not allowed without written consent | Many JB condos restrict short-term letting |
| 12. Access | Landlord may inspect with reasonable notice; urgent repairs | Lets a remote owner or manager check the unit |
| 13. Inventory | Signed list of furniture, appliances and condition, as a schedule | The basis for any deposit deduction |
| 14. Insurance | Landlord insures the building and own contents; tenant insures personal belongings | Avoids gaps after a leak or fire |
| 15. Default, disputes and stamping | What counts as breach, notice to remedy, governing law, who pays stamp duty | Gives a lawful path if things go wrong |
Tenancy agreement stamp duty in Malaysia (2025 and 2026 rates)
Every tenancy agreement must be stamped within 30 days of signing. For agreements from 1 January 2025 the duty is calculated on the full annual rent, with no RM2,400 exemption, at RM1 to RM7 for every RM250 depending on the lease length.
The old rule exempted the first RM2,400 of annual rent and charged RM1 to RM4 per RM250. Changes effective 1 January 2025 removed that exemption and raised the top bands. From 1 January 2026, tenancy instruments moved into Phase 1 of LHDN’s stamp duty self-assessment system, filed online through e-Duti Setem on MyTax.
| Lease length | Duty per RM250 of annual rent | Example: RM2,800 a month (RM33,600 a year, 135 units) |
|---|---|---|
| One year or less | RM1 | RM135 |
| More than 1 year, up to 3 years | RM3 | RM405 |
| More than 3 years, up to 5 years | RM5 | RM675 |
| More than 5 years | RM7 | RM945 |
- Who pays: by law the tenant is liable for the original and the landlord for the copy, which may attract a fixed RM10. The parties can agree otherwise in writing, and many JB agreements do.
- Short leases: rent for a lease under a year is annualised first, so a six-month lease at RM2,000 is treated as RM24,000 a year (RM96 of duty).
- Late stamping: a penalty of RM50 or 10% of the duty (whichever is higher) within three months of the deadline, and RM100 or 20% after that.
What this means for you: on a typical one-year lease near the CIQ, stamp duty is about one-twentieth of a month’s rent. Choosing a one-year term with a renewal option, rather than a two-year term, also keeps the duty at the RM1 band.
Deposits: what is normal and how refunds should work
The JB norm is “2+1”: two months’ rent as a refundable security deposit plus one month in advance, usually with a utility deposit of about half a month. Malaysia has no legal cap, so the amounts and refund timeline are whatever the agreement says.
Write three things into the deposit clause: the exact amounts, what deductions are allowed (unpaid rent, unpaid bills, damage beyond fair wear and tear, missing inventory items), and a refund deadline, often 14 to 30 days after the keys are returned. Ask the landlord to give an itemised list with photos for any deduction. Tenants should get a receipt for every payment; landlords should accept deposits only into an account in their own name.
But what if the tenant asks to use the deposit as the last month’s rent? That is a common request and a common dispute. Agree in the contract that the security deposit cannot be used as rent unless the landlord agrees in writing, and that the final inspection comes first.
Renewal and rent reviews
A good renewal clause gives the tenant an option to renew for another fixed term, sets a notice deadline, and says how the new rent will be agreed. It removes the end-of-lease scramble for both sides.
A common structure is a one-year term with an option to renew for one more year, exercisable by written notice two to three months before expiry, at a rent to be agreed at market rate. Some landlords prefer a cap, for example an increase of no more than a stated percentage, which gives the tenant certainty and makes them more likely to stay. Each renewal is a new instrument for stamp duty, so budget for it.
Renewals also matter for landlords’ income tax: under LHDN’s Public Ruling 12/2018, the cost of renewing a tenancy is generally deductible, while the cost of finding the first tenant is not. Our rental income tax guide for Malaysian landlords explains this in detail.
Early termination and the diplomatic clause
An early termination clause sets how either side can end the lease before it expires and what it costs. For tenants who work in Singapore, a diplomatic clause is the single most important protection.
A diplomatic clause usually lets the tenant end the lease early if they are transferred out of the country or lose their job, after a minimum period (often 12 months of a two-year lease) and with two months’ written notice, sometimes with a proof requirement such as an employer’s letter. Without it, a tenant who leaves early may forfeit the deposit and be liable for rent until the end of the term or until the unit is relet, depending on the wording.
- State the minimum stay before the clause applies.
- State the notice period and the evidence required.
- Say whether the tenant must refund a proportion of any agent fee the landlord paid.
- Give the landlord a matching right only where there is a genuine reason, such as selling with vacant possession, and with the same notice.
Maintenance responsibilities: who fixes what
The fairest split is: the landlord pays for structural items, major systems and fair wear and tear; the tenant pays for minor repairs, routine servicing and any damage they cause. A ringgit threshold keeps it simple.
| Item | Usually paid by | Notes |
|---|---|---|
| Structural defects, leaks from walls, ceiling or pipes | Landlord | New units may still be under the developer’s defect liability period |
| Air-conditioner breakdown (compressor, major parts) | Landlord | Unless caused by lack of servicing |
| Air-conditioner servicing | Tenant | Often every 3 to 6 months; agree the interval |
| Water heater, built-in appliances | Landlord for breakdown | Tenant if damaged by misuse |
| Light bulbs, minor plumbing, small fixes | Tenant | Set a threshold, for example the first RM200 per item |
| Maintenance fee, sinking fund, quit rent, assessment | Landlord | Paid to the management body, land office and council |
| Electricity, water, internet | Tenant | TNB, Ranhill SAJ and the chosen internet provider |
Add a line that the tenant must report defects promptly in writing (a WhatsApp message counts if you agree it does), and that the landlord must act within a reasonable time. For new condos, landlords should also note the developer’s defect liability period, generally 24 months from vacant possession for new launches, so defects found by the tenant can be passed to the developer.
Signing process: five steps from draft to stamp
Most JB tenancies go from agreed terms to a stamped agreement in one to two weeks. Following these steps in order keeps important details from slipping.
- Confirm the key terms in writing (rent, deposits, term, start date, furniture list, special requests) by WhatsApp or email.
- Draft and review. The landlord, agent or lawyer drafts; both sides read it fully and ask about anything unclear before signing.
- Sign. Initial every page, sign the signature page and attach ID copies. If signed outside Malaysia, the 30-day stamping window runs from when the document is first received in Malaysia.
- Stamp through e-Duti Setem on MyTax within 30 days and keep the stamp certificate.
- Hand over with a joint inventory check, photos and meter readings, signed as a schedule to the agreement.
When things go wrong: lawful steps only
If rent stops or a tenant refuses to leave, the landlord must use the legal process. Changing the locks, removing belongings or cutting water and electricity without a court order is unlawful self-help eviction under the Specific Relief Act 1950.
A good agreement makes the lawful path quicker: a written notice to pay or remedy within a set period, the right to terminate after that, and the right to recover costs. Tenants have a matching interest: if the landlord fails to do major repairs, the agreement should allow a written notice and, ultimately, termination. Keep all notices in writing and dated.
Make your tenancy agreement work for the RTS era
With the RTS Link targeted to start passenger service in February 2027, more tenants near Bukit Chagar will be cross-border commuters, so a few extra lines are worth adding: emergency contacts on both sides of the Causeway, rent payable in ringgit to a Malaysian account, and clear access arrangements if the landlord lives in Singapore.
Investors buying off-plan now, for example at Causewayz Square, the freehold EXSIM project about 600 m from the CIQ with a target completion around 2030, can plan their first agreement well before handover. See our property management in JB guide for remote-owner routines, our tips to rent out a JB unit faster, and the JB property calculator to test your numbers. WhatsApp us for the latest SPA price list and floor plans.
Sources
- StashAway (Aug 2026): Stamp duty and administration fees for tenancy agreements in Malaysia
- The Sun: Significant changes to stamp duty from 2025
- EdgeProp (Feb 2026): Long-awaited Residential Tenancy Act to be tabled this year, says minister
- Malay Mail (Aug 2026): Three new housing laws planned
- LHDN: Stamp duty self-assessment system (STSDS)
- LTA (Oct 2026): RTS Link service targeted for February 2027
This guide is general information, not financial advice.