How to Rent Out Your Property in Malaysia: Finding Tenants, Setting the Right Price and Staying Protected

Key steps: (1) Check if your mortgage allows rental — most do, but some Islamic financing products have conditions. (2) Confirm no strata by-laws restrict rental (some condominiums have minimum stay requirements). (3) Prepare the property — clean, check all appliances, fix defects. (4) Set a realistic rent based on comparable units in the same building. (5) Decide whether to self-manage or engage a property manager (typically 8–10% of monthly rent). (6) Draft a tenancy agreement and get it stamped.

Check rental listings for comparable units in the same building on PropertyGuru and iProperty. Look at units of the same size, floor range and furnishing level. The asking price on portals is not the transacted rent — factor in typical negotiation (5–10% below asking is common for slower markets). Also check rental yield: divide annual gross rent by property price. A yield of 4–6% is typical for urban condominiums; 3% or below suggests the asking rent is too low relative to the property's capital value.

Yes. Rental income is taxable income for Malaysian residents under the Income Tax Act. It is assessed separately from employment income. Allowable deductions include loan interest on the property, assessment and quit rent, insurance, agent fees and repairs (but not capital improvements). Net rental income is added to your total chargeable income and taxed at the applicable personal income tax rate. Failure to declare is a legal offence.

The standard is: 2 months' security deposit + 0.5 months' utility deposit + 0.5 months' advance rent (first month pro-rated). This means a tenant moving in on the first of the month pays the equivalent of 3 months' rent upfront at signing. The security deposit is returned at the end of the tenancy after deductions for damages beyond fair wear and tear. Document the condition at check-in and check-out with photos.

Fully furnished properties attract a higher monthly rent (typically 15–25% premium over unfurnished) and appeal to expat tenants and short-stay professionals. However, you bear the cost of furniture replacement and appliance repair. Partially furnished (air conditioning, water heater, built-in kitchen, curtains) offers a middle ground. Unfurnished suits long-term local tenants who bring their own furniture. The right choice depends on your target tenant profile and the norms in the specific building.

The landlord is responsible for: structural elements (roof, walls, floors), major building services (lifts, external pipes, main electrical), and ensuring the property is in a tenantable condition at the start of the tenancy. During the tenancy, responsibility for repairs depends on whether it is structural/mechanical failure (landlord) or damage caused by tenant negligence (tenant). Define this clearly in the tenancy agreement and document the initial condition of all appliances at check-in.

During a fixed-term tenancy, you can only evict a tenant if they have materially breached the tenancy agreement — typically non-payment of rent (usually 14–30 days overdue) or causing damage. Evicting for other reasons during the fixed term is a breach of contract and the tenant can claim compensation. At the end of the fixed term, you can decline to renew with appropriate notice (typically 1–2 months as specified in the agreement). Consult a lawyer before attempting any eviction.