Malaysia shares much with its neighbours to the north and south, Thailand and Singapore. A tropical climate, stunning rainforests and beaches, and a friendly business environment. Yet it’s never quite achieved the same status as a destination for expats or tourists.
This, however, is starting to change. As one of the only countries in Asia where it is legal and easy for foreigners to own land directly and a country where the cost of living is very low, more people are starting to move there.
Although foreigners can buy property and land there, many choose to rent. This is especially the case in big cities, like the capital Kuala Lumpur, where buying is more expensive. The rights for renters in Malaysia are mostly modern, but anyone thinking about renting there would be wise to research what the differences are with their home country.
This guide will walk you through what to expect as a renter in Malaysia, as well as some dos and don’ts that you should follow.
Upfront Costs
Residential properties such as Razak City Residences require prospective renters to pay three types of deposits. The first is an ‘earnest deposit’ which is intended to show that you are seriously considering renting the property. The amount is usually the same as one month’s rent, or around 2% of the property value. The landlord cannot rent the unit to anybody else after it has been paid.
The next deposit that renters must pay is the security deposit, and this is essentially the same as it is in most countries. It is there to cover the cost of repairing any damage when a tenant leaves the property. In Malaysia, the amount is usually two months’ rent.
Something to note is that tenants in Malaysia are expected to give at least two months’ notice when they want to end their tenancy. If they move immediately without giving notice, the landlord is allowed to keep the security deposit as payment for those two months.
Another month’s rent is also needed upfront when the tenant is responsible for paying the utility bills. This is a ‘utility deposit’ which the landlord can take money from if the tenant has not paid their utility bills. When the tenant leaves, they can expect to get this money back if there are no outstanding utility payments.
One thing tenants may find is that the rental market in Malaysia is a lot more casual than in many other countries. They may find themselves dealing with landlords directly rather than with estate agents. Often, there is no tenancy agreement on paper at all for residential properties. However, it is advisable to go through an agent if you can, to ensure that your deposits are correctly managed and returned.
The final upfront cost is furnishings to create a comfortable apartment. There are furnished and unfurnished residences available. In the case of the former, you will have to pay for any furnishings you want to upgrade or make bigger.
Things You Should Do When Renting in Malaysia
As a tenant, you obviously have financial obligations to meet, but there are other ones you need to meet too. The responsibilities that fall on you as a good tenant are:
- paying any required deposits before you move in.
- paying your rent by the agreed deadline.
- letting the landlord know about any repairs that the property needs as soon as possible.
- leave the property in the same condition it was given to you in.
- avoid breaking the law.
- pay the bills on time.
- ask for permission to change things or sublet rooms.
In practice, this means that there are some simple things to make sure you always do:
- See your property and check it thoroughly in person before agreeing to rent it.
- Read and sign a tenancy agreement, going through an agent if possible.
- Always pay your rent and utility bills on time.
- Keep the property clean, tidy, and in good condition.
- Let the landlord or agent know as soon as possible about anything that has been damaged or needs repairing.
Things You Shouldn’t Do When Renting in Malaysia
There are also some important don’ts to remember if you are renting in Malaysia. Most of them are common sense, such as:
- Agree to a verbal contract.
- Sublet the property, or rooms in the property, without the landlord’s permission.
- Breach the terms of your tenancy agreement.
- Damage the property or ignore things that need repairing.
- Miss payments.
Malaysia’s climate, low cost of living, beautiful surroundings, and great food are helping to make it a popular destination for expats from around the world. While renting there can be a little different from other countries, following these tips and exercising a little bit of common sense can help most renters find a great property in the country and stay protected.
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