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Malaysian tenancy agreements: five points to check before signing

Malaysian tenancy agreements: five points to check before signing

A Malaysian tenancy agreement covers more than rent and the tenancy period. It details practical living conditions, including maintenance, early termination, move-out procedures and responsibility for repairs.

To clarify contractual roles, this article uses “landlord” for the party letting the property and “tenant” for the party renting it.

Drawing on KL Fudousan’s local rental experience, this guide focuses on five points especially likely to cause problems after moving in.

Air conditioning

Prohibited activities

Expatriate clause

Move-out conditions

Repair responsibilities

Air-conditioner servicing frequency

Malaysian tenancies commonly require tenants to pay for regular air-conditioner cleaning and maintenance. At move-out, complete the services specified in the agreement and submit receipts or other proof.

Local advice from KL Fudousan

Air-conditioner leaks can result from insufficient or inadequate servicing. We recommend first arranging a service and checking the situation.

FrequencyRequired interval in months
Generally every six months
At move-outChemical servicing
Gas top-up
RecordsKeep receipts and other proof

For air-conditioner cleaning and repair contractors, see our useful service-provider list.

Prohibited activities in the property

Restrictions vary by property. Before signing, check these points in particular.

  • Keeping pets
  • Smoking indoors
  • Unauthorised renovations, drilling or equipment changes
  • Subletting or use for short-stay accommodation
  • Use that breaches condominium management rules

For pets, check both the condominium’s rules and the landlord’s consent. Tell KL Fudousan at the start of your search if you need a pet-friendly property.

Expatriate clause

An expatriate clause permits early termination when specified conditions are met, such as an employer’s repatriation order.

From year twoTypical

Expatriate clauses generally apply from the second year, and often do not permit early termination within the first year of the tenancy.

Always check the agreement for the effective date, notice period and required employer documents proving repatriation.

KL Fudousan’s point to check

Expatriate tenants should check before signing whether an expatriate clause is included. Understand the terms at the start, rather than checking for the first time after repatriation is announced.

Move-out and early-termination conditions

Particularly important are early-termination penalties and the deadline for giving notice.

Early-termination provisions may require forfeiture of the two-month security deposit or payment of rent until the tenancy expires. This difference greatly affects your liability, so always check before signing.

Many agreements also require notice two to three months in advance. After notice, you may be asked to cooperate with viewings for replacement tenants. If requested in advance and you expect to be home, help where reasonably possible.

For the actual move-out process, see Moving out and ending a tenancy in Malaysia for details.

Who pays expenses and repair costs?

Check the agreement to see whether the landlord or tenant pays for defects and repairs during the tenancy. It may set a tenant contribution limit for minor repairs.

Common landlord expenses

  • Management charges
  • Sinking fund contributions
  • Property-related taxes
  • Structural defects, such as water leaking from the ceiling
  • Appliance failure through normal use
Common tenant expenses

  • Contract-related costs
  • Minor repairs costing RM300 or less
  • Replacing light bulbs
  • Blocked drains and similar issues
  • Damage or staining caused by the tenant’s use

The landlord often pays to repair supplied refrigerators or washing machines that fail during normal use. Damage from tenant use—such as wall markings, scratched flooring or discolouration of floors or kitchen surfaces—may lead to reinstatement charges at move-out.

An actual case involving a RM7,000 deduction

In new or relatively new properties, scratches and stains at move-out may more readily be attributed to the tenant, leading to substantial reinstatement costs. KL Fudousan has handled a case where floor scratches and damage to walls and kitchen surfaces resulted in RM7,000 being deducted from the security deposit.

KL Fudousan photographs and records the unit’s condition at move-in. If you later notice damage or defects and inform us, we notify the landlord and record the details.

KL Fudousan checks key terms when arranging a tenancy and coordinates to avoid misunderstandings between landlord and tenant.

JAPANESE SUPPORT

If you would like to check the agreement in Japanese

KL Fudousan does not charge tenants a brokerage fee for rental searches handled by our English- and Chinese-speaking local staff. For Japanese-language assistance, including checking contract terms, our separate Japanese-language support service is available.

Read about Japanese-language support →

KL Fudousan
Check the contract terms as well as the property before moving in.

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