HOW MUCH TO PAY FOR RENTAL DEPOSIT IN MALAYSIA

Rental Security Deposit is a deposit which will be used to cover any damages of the landlord’s property that is caused by the tenant during the tenancy period.

Both security & utility deposit will be fully refund to the tenant if there is no any issue with tenancy. Below is a common practice in Malaysia for most landlords:

Sample of RM 10,000 Monthly Rental with the Commencement Date started on 1^st Jan 2021 ends on 31^st Dec 2021.

Tenancy Period: 1 year
Monthly Rental: RM 10,000.00

1. 1 month advance rental (for January)                      – RM 10,000
2. 2 months security deposit                                           – RM 20,000
3. ½ month utility deposit                                              – RM   5,000
4. Legal Fee & Stamping Fee                                          – RM   2,981*
5. Professional Agency Fee                                             – RM   5,000
6. 6% SST                                                                           – RM      300
   Total                                                                            RM 41,031

Calculation for Legal Fees & Stamping Fee

Legal fees for tenancy agreement period of three years and below:

1. First RM10,000 rental – 25% of the monthly rent
2. Next RM90,000 rental– 20% of the monthly rent
3. More than RM100,000 – negotiable

*Legal fee : RM 10,000 (monthly rental) x 25% = RM 2,500

Stamping Fee

[(Rental Rate x Period Agreement) – 2400] / 250

Stamping Fee           : [(RM10,000 x 12mth) – 2400] / 250 = RM 470.40 = RM 471.00

For additional copy : RM10/Set

Legal Fee & Stamping Fee : RM 2500 + RM 471 + RM 10 = RM 2,981.00

Sharing By: Ameerah Shaaban