Renewing Your Tenancy Agreement in Malaysia

Lease expiring soon? Here's what to negotiate, how much stamp duty costs, and how to stamp your agreement online via LHDN.

Stamp Duty

RM100-500+

Time Needed

1-2 weeks

Difficulty

Easy

Start Before

2-3 months before expiry

Stamp your agreement! An unstamped tenancy agreement is not admissible as evidence in Malaysian courts. If a dispute arises with your landlord — unpaid deposit, early termination, property damage — an unstamped agreement cannot protect you. Always stamp within 30 days of signing.

Documents Needed

Original tenancy agreement (the one you're renewing)
Landlord's MyKad copy (front and back)
Tenant's MyKad copy (front and back)
Property title / address details (full address as per land title)
Proof of rental payments (bank transfer receipts for at least the last 3 months)
New tenancy agreement or renewal addendum (drafted and signed)
Stamp duty payment (cash, card, or online via e-Stamping)

Step-by-Step Process

Review your current agreement (2-3 months before expiry)
Check the expiry date, renewal clause, notice period, and rent escalation terms. Most agreements require 2 months' written notice if you intend to vacate or request changes. Some have automatic renewal clauses — read the fine print.
Negotiate new terms with your landlord
Discuss: monthly rent (request market-rate comparison if landlord wants an increase), lease duration (1 or 2 years), maintenance responsibilities, any repairs needed, and deposit adjustments. Get everything agreed in writing before drafting.
Draft the renewal agreement
You can either: (a) prepare a new tenancy agreement with updated terms, or (b) prepare a shorter renewal addendum that references the original agreement and lists only the changed terms. Option (a) is cleaner and recommended — addendums can get messy if there are multiple renewals.
Both parties sign the agreement
Print two copies. Both landlord and tenant sign each copy. Each party keeps one original. Make sure the agreement includes: parties' full names and MyKad numbers, property address, rental amount, tenure dates, deposit details, and responsibilities.
Stamp the agreement at LHDN
You must stamp within 30 days of signing to avoid late penalties. You can stamp online via stamps.hasil.gov.my (LHDN e-Stamping) or at any LHDN branch. See the stamp duty calculation below.
Keep your stamped copy safe
Store the stamped tenancy agreement with your important documents. You'll need it for: any tenancy disputes, deposit recovery, utility account transfers, and as proof of address for government applications.

Stamp Duty Calculation

Stamp duty for tenancy agreements is based on annual rent. The formula:

Annual Rent	Stamp Duty Rate
First RM2,400	Exempt (no duty)
Above RM2,400	RM1 per RM250 (or part thereof) for every year of tenancy

Example Calculations

Monthly Rent	Annual Rent	Stamp Duty (1 year)	Stamp Duty (2 years)
RM1,000	RM12,000	RM38	RM76
RM1,500	RM18,000	RM62	RM124
RM2,000	RM24,000	RM86	RM172
RM2,500	RM30,000	RM110	RM220
RM3,000	RM36,000	RM134	RM268

Formula: ((Annual Rent - RM2,400) / RM250) x RM1 x number of years. Round up any partial RM250 block.

Who pays stamp duty? By convention, the tenant pays the stamp duty for the original agreement, and the landlord pays for the duplicate copy. However, this is negotiable — check what your agreement says. Some landlords split the cost 50/50.

Key Facts

Detail	What You Need to Know
Typical Tenure	1-2 years (most common is 1+1 year option)
Notice Period	Usually 2 months written notice before expiry
Security Deposit	Typically 2 months rent + 0.5 month utility deposit
Stamping Deadline	Within 30 days of signing (late = 5x penalty)
Late Stamping Penalty	Up to 5x the original stamp duty
Rent Increase Cap	No legal cap — negotiate based on market rates
e-Stamping Portal	stamps.hasil.gov.my

Negotiation Tips for Renewal

Research market rates — check PropertyGuru, iProperty, or Mudah for comparable units in your area. If your landlord asks for a 10% increase but market rates are flat, push back with data.
Offer a longer lease — landlords value stability. Offering a 2-year renewal instead of 1 year may help you negotiate a lower rate or no increase.
Request maintenance fixes — renewal is your leverage window. Air-con servicing, repainting, or fixing that leaky faucet? Ask now, in writing, as part of the renewal terms.
Negotiate who pays stamp duty — some landlords will split or cover the stamping fee, especially for good long-term tenants.
Get it in writing — verbal agreements mean nothing in court. Every term you agree on should be in the signed tenancy agreement.

Frequently Asked Questions

What happens if I don't renew and just keep paying rent?

If your tenancy agreement expires and you continue paying rent (and the landlord accepts it), you become a "tenant at will" or "holding over tenant." This means either party can terminate with reasonable notice (typically 1 month). You lose the protections of a fixed-term tenancy — the landlord can raise rent or ask you to leave with short notice. Always renew formally.

Can I stamp the agreement online?

Yes. LHDN's e-Stamping portal at stamps.hasil.gov.my allows you to stamp tenancy agreements online. You'll need to create an account, fill in the agreement details (parties, property, rent, duration), pay online, and print the stamp certificate. Attach this certificate to your agreement. It has the same legal validity as a physical stamp.

What if I stamp late (after 30 days)?

Late stamping incurs penalties: RM25 or 5% of the duty (whichever is greater) if stamped within 3 months, and up to 5x the original duty if later. You can still stamp a late agreement — LHDN will assess the penalty when you submit. It's always better to stamp late than never.

Do I get my deposit back when I renew?

When renewing with the same landlord, the security deposit usually carries forward — you don't get it back and don't need to pay it again. However, if the rent increases, the landlord may ask for a top-up to maintain the 2-month equivalent. Check what your renewal agreement says about deposits.

Can my landlord refuse to renew?

Yes. Unless your tenancy agreement has a mandatory renewal clause, the landlord is not obligated to renew. They must give you proper notice (as stated in the agreement, usually 2 months). If you have a "right of first refusal" or "option to renew" clause, the landlord must honour it as long as you meet the conditions.

Related Guides

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Tenancy laws and stamp duty rates can change. Always verify with LHDN (hasil.gov.my) or a qualified lawyer for your specific situation. Last reviewed: March 2026.