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How to Rent Your House in Malaysia

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Maximize Your Property's Potential: A Step-by-Step Guide on How to Rent Your House in Malaysia and Generate Passive Income


Renting out your house in Malaysia can be a great source of passive income and an excellent investment. However, it's important to know the right steps to ensure a smooth process and to protect yourself and your property. In this guide, we'll walk you through the process of renting your house in Malaysia, step by step.

Step 1: Determine Your Rental Price Before you list your property, you'll need to determine a fair rental price. Research the rental market in your area and compare prices for similar properties. Consider factors like location, size, amenities, and the condition of your house. Setting a competitive price will help you attract potential tenants quickly.

Step 2: Prepare Your House Before you start advertising your rental property, make sure it's in excellent condition. Address any maintenance issues, clean thoroughly, and consider making small improvements to increase the property's appeal. Make sure you comply with Malaysian housing regulations and safety standards.

Step 3: Market Your Property To attract potential tenants, you'll need to market your property effectively. List your property on popular online platforms like iProperty,, PropertyGuru, and Include high-quality photos and a detailed description of the property. You can also use social media, local newspapers, and personal networks to spread the word.

Step 4: Screen Potential Tenants When you start receiving inquiries, it's essential to screen potential tenants carefully. Ask for references from previous landlords and employers, as well as a credit report. Verify their income and ensure they have the financial stability to pay rent consistently.

Step 5: Prepare the Tenancy Agreement Once you've selected a tenant, draft a legally binding tenancy agreement. The agreement should include essential details such as the rental amount, payment due dates, security deposit, maintenance responsibilities, and the duration of the lease. Both parties must sign the agreement, and it's a good idea to have it reviewed by a legal professional.

Step 6: Collect Security Deposit and Advance Rental Before your tenant moves in, collect a security deposit (usually equivalent to two months' rent) and an advance rental payment (one month's rent). The security deposit will cover any damages or unpaid rent, while the advance rental ensures the tenant has paid for their first month of occupancy.

Step 7: Hand Over the Keys Once the agreement is signed and the security deposit and advance rental are paid, you can hand over the keys to your tenant. Conduct a walkthrough of the property together, documenting any pre-existing damages to avoid disputes later on.

Step 8: Register the Tenancy Agreement In Malaysia, it's required to stamp your tenancy agreement with the Inland Revenue Board (LHDN) within 30 days of signing. This process requires paying a stamp duty fee, which is typically shared between the landlord and tenant. Registering the agreement ensures it's legally binding and can be used as evidence in case of disputes.

Step 9: Maintain Communication and Manage the Property Keep the lines of communication open with your tenant and address any issues promptly. Regularly inspect the property to ensure it's well-maintained and to identify any necessary repairs. Maintain a professional relationship with your tenant and respect their privacy.

Conclusion: Renting your house in Malaysia can be a rewarding experience when done correctly. Follow these steps to ensure a smooth rental process and protect your investment. With proper preparation, marketing, and tenant management, you'll be well on your way to a successful rental experience.