Residential Tenancy Renewal — What You Need to Know
Most residential tenancies are 1 or 2 years, and most landlords renew with the same tenant if things have been smooth. The renewal itself is paperwork, not a re-negotiation. This page walks through what you actually have to do.
For renewals on private property, see the general renewal guide.
Three things that have to happen
1. Agree on new terms
Discuss and agree on the new rental rate, tenancy period, and any changes to terms with your tenant. Most renewals keep the same terms with updated dates and possibly a revised rent. Get the agreement in writing before proceeding.
2. Sign a renewal agreement
Either a short renewal addendum (if only dates and rent change) or a fresh new tenancy (if anything else changes). Most landlords go with a fresh new tenancy because it makes the document trail simpler — one stamped agreement that covers the whole period. Our renewal flow generates a fresh agreement pre-filled from your previous one.
3. Stamp it with LHDN within 14 days
Stamp duty on the renewal is RM1 per RM250 of annual rent (1-year lease) or RM3 per RM250 (1–3 year lease). Same rate as a new tenancy — there is no discount for renewals. File via LHDN e-Stamping. See the stamp duty page for worked examples.
Things people forget
- Foreign tenant pass expiry. If your tenant is on an EP/S Pass/WP, check their pass extends through the renewal end date. If not, write a clause about what happens if their pass isn't renewed.
- Diplomatic clause stays or goes? If you originally had one, decide whether it carries forward. After 12+ months in the same job most expats no longer need it, so this is a fair negotiating point.
- Security deposit on renewal. Most tenancies hold the existing deposit through the renewal. If rent went up, you can ask for a top-up to match the new monthly amount.
- Furnishing and condition. Walk through the unit before signing the renewal. Note any wear-and-tear in the inventory list — saves arguments at the end of the renewal term.
- Letter of intent isn't the agreement. A signed LOI commits both parties in principle, but the renewal isn't legally binding until both sign the actual tenancy and it's stamped with LHDN.
When to renew vs find a new tenant
From a landlord's view, the math usually favours renewal even if the rent stays flat. Replacing a tenant means:
- 2–4 weeks of vacancy on average while you find someone
- Half-month or full-month commission to a property agent (if you use one)
- Risk of a worse tenant — late payers, noise complaints, damage
- Re-marketing effort (photos, listing, viewings)
For a RM3,000/month flat, 3 weeks of vacancy plus half-month commission is roughly RM3,500 in lost rent and fees. That's the equivalent of 9% rent reduction over a 1-year renewal — usually a worse outcome than just keeping a known-good tenant at the same rent or with a small increase.
Generate your tenancy renewal
Renewal-ready form for residential tenancies. Updated dates, new rent, ready for LHDN stamping. Preview before purchase, RM30 to download.
Frequently asked questions
Can I just sign a one-page renewal addendum, or do I need a full new agreement?
A short addendum can work if you're only changing the dates and rent and nothing else. But if you're changing anything else (security deposit amount, who pays utilities, adding occupants, dropping a diplomatic clause), it's safer to issue a full new tenancy. A full new agreement also makes LHDN stamping cleaner because you stamp one document instead of the original plus the addendum together.
My tenant has been good for two years. Can I just continue without paperwork?
You can, but it creates a periodic tenancy by default — month-to-month, terminable on short notice. The original agreement's protections (notice period, deposit handling, fixed rent) lapse once the term ends. If anything goes wrong, you have weaker legal footing. A signed renewal is cheap insurance.
Stamp duty on the renewal — same as new?
Same rate. RM1 per RM250 of annual rent for a 1-year renewal, or RM3 per RM250 for a 1–3 year renewal. Pay to LHDN within 14 days of signing. The tenant typically pays unless your renewal agreement says otherwise.
What if my tenant wants a 2-year renewal but I only want 1 year?
Negotiate. If you genuinely don't want a 2-year commitment (planning to sell, moving back in), say so and offer 1 year with an option to extend. If you're hedging on rent direction, you can write in a rent-review clause for year 2. The renewal is signed by both parties — you're not obligated to accept whatever the tenant proposes.
Can the rent stay the same on renewal?
Yes. Malaysia has no rent control. If your tenant has been good and the unit hasn't appreciated much, holding rent flat (or even reducing it slightly) is a reasonable retention move. Cost of finding a new tenant, vacancy weeks, and agent fees often exceeds the rent increase you'd get from a market-rate replacement.
Foreigner tenant: any extra steps for renewal?
If your tenant is on an Employment Pass, S Pass, or Work Permit, check that their pass is still valid through the renewal end date. If their pass expires mid-term, the tenancy needs a clause covering that scenario (early termination on pass expiry, prorated deposit return). For foreigners on long-term passes, the renewal is otherwise the same as for a Malaysian tenant.