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Comprehensive Guide to Leases and Tenancy Agrements in Malaysia

Tenancy Agreement / Lease Agreement in Malaysia


Introduction
​

Whether you are renting out your property as a landlord or moving into a property as a tenant, having a proper tenancy or lease agreement is essential. A well-drafted agreement clearly defines the rights and obligations of both parties, minimises disputes, and provides legal protection under Malaysian law.

At TEH & YU, we draft and review tenancy and lease agreements for residential, commercial, and industrial properties. Our goal is to provide clarity, fairness, and enforceability so that both landlords and tenants are protected.


​W​hat is a Tenancy Agreement?

  • A Tenancy Agreement is a written contract between landlord and tenant that governs the rental of a property.
  • It typically covers shorter terms (less than 3 years).
  • It sets out key details such as rental amount, deposit, duration, and maintenance obligations.


​What is a Lease Agreement?

  • A Lease Agreement generally applies to longer-term rentals (exceeding 3 years).
  • It requires registration at the land office for it to be enforceable.
  • Often used for commercial or industrial properties.

​

Why Do You Need a Written Agreement?
​​

  • Prevents disputes over rent, repairs, or termination.
  • Protects landlords from defaulting tenants.
  • Protects tenants from sudden eviction or unfair terms.
  • Provides legal recourse in the event of a breach.



Key Terms in a Tenancy Agreement
​

​Some important clauses that must be clearly defined include but are not limited to the following: -
  • Rental Amount & Payment Schedule: when and how rent is paid.
  • Security & Utility Deposits: typically two months’ rental for security and half a month for utilities.
  • Duration & Renewal: initial term, renewal options, and notice period.
  • Repair & Maintenance: who is responsible for structural repairs vs daily upkeep.
  • Termination & Eviction: conditions under which either party may terminate.
  • Subletting & Assignment: whether the tenant is allowed to sublet the premises.



Frequently Asked Questions (FAQs) on Tenancy Agreement / Lease Agreement
​​

1. What is the difference between a tenancy and a lease in Malaysia?
A tenancy is usually for less than 3 years and does not require land office registration, while a lease is typically for more than 3 years and must be registered at the land office.
2. How much is the stamp duty for a tenancy agreement in Malaysia?
Stamp duty depends on the annual rent and duration of the tenancy. Longer leases carry higher rates. ​Please seek independent advice on your specific circumstances.
3. Who pays for the stamping of a tenancy agreement?
Usually, the tenant pays the stamp duty, but the landlord and tenant can agree otherwise in the contract.
4. What is the typical deposit required for a tenancy in Malaysia?
Common practice is 2 months’ rental as security deposit and half a month’s rental as utility deposit, payable upon signing.
5. Do tenancy agreements in Malaysia need to be registered with the land office?
No, tenancy agreements do not require registration with the land office. However, lease agreements exceeding 3 years must be registered.


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Exceptional 5-star service from Mr Teh solicitor in Mont Kiara! As newcomers to Malaysia under the MM2H programme, we were excited but worried about the process of purchasing property here and finding the right solicitor to assist with the process. We are thrilled with Mr Teh's diligent, detail-oriented approach. He was always super prepared and went above and beyond, ensuring a smooth condo purchase while proactively communicating risks, quirks, and solutions. All this while charging very transparently and reasonably for the services provided. Wholeheartedly recommended, especially if you are new here.​

Feedback from Google Reviews

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I came across Teh & Yu when I searched in Google to look for foreign marriage divorce. Their website published a very detailed information about the process, and Mr Teh did give me a preliminary call to understand more about my situation. He was so patient and polite in providing me his advice and also to let me know the details of the process. Their legal fee is by far the cheapest that I found (I have asked for 6 legal firms for the quotation). I strongly recommend their firm to anyone who is in need of legal advice - I couldn't believe that i was so lucky to have found such amazing legal firm by chance!!​

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I am extremely grateful to Teh & Yu Law Firm for their exceptional service during my divorce process. Their team was not only professional and knowledgeable but also compassionate and understanding during a very difficult time. They provided clear legal guidance, were always responsive to my questions, and ensured that my rights were well protected. Thanks to their expertise, the entire process was handled smoothly and efficiently. I highly recommend Teh & Yu Law Firm to anyone in need of a reliable and dedicated divorce lawyer.​

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Mr. Teh, I sincerely thank you and grateful to you, Teh & Yu Advocates and Solicitors and the team for extending a great, dedicated, professional services in assisting me to resolve my marriage record that was not updated decades ago. My deepest gratitude to you and your team. It has been a great pleasure working with you. All guidances and advices provided are always so timely and fast. Thank you very much!​

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Professional, polite, prompt and efficient service is what they provide all done via WhatsApp and if requested on email too. I am located overseas and found them via Google and they were quick to respond on WhatsApp. They were very helpful in terms of advice and instructions on forms to complete and when to complete by. They also provided updates without prompting.I would recommend them to anyone who is overseas and needs services completed in Malaysia.​

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Getting to know Mr. Teh and company really my pleasure. Professional services provided here are absolutely satisfying with a word “Excellent”. Got frequently updates about the service / work progress, having me to worry free for no hanging over tasks. I high recommend them as my first choice

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I’m glad to have engaged Teh & Yu to handle my late dad’s will. Mr Teh is very prompt in responding to our texts/ requests. The timeline and processes involved were well explained in the beginning. Overall a seamless and pleasant experience and I have no hesitation in recommending this firm to family and friends.​

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We are here to assist.
​

A clear and well-drafted tenancy or lease agreement is the best protection for both landlords and tenants. Whether you need a residential tenancy, a commercial lease, or advice on rental disputes, our conveyancing lawyers are here to help.

​Contact us today to have your tenancy or lease agreement professionally drafted or reviewed.

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MESSRS TEH & YU
​Advocates & Solicitors 

​
E-05-17, Plaza Mont Kiara,
​Jalan Kiara, ​Mont Kiara,
​50480 Kuala Lumpur,
Malaysia.
📞 +603 6419 1888
​

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Their service's was so professional and really fast track and updates on the progress. Really recommend.

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They make it very easy for us and they are very professional. If I need any legal advice and assistance I will return back to them. 

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