Renting a Home in Malaysia for a Foreign Employee: 2026 HR Guide to Deposits, Stamp Duty and Buying
Once the Employment Pass is sorted, the next question from a new foreign hire is usually where to live. Most rent. This guide is for HR teams helping with that: when to start looking, what landlords ask for, deposits and stamp duty, what to check and negotiate before signing, moving in and out, and the problems we see most often. A short section at the end covers buying.
💡 Key takeaway: Start looking 1 to 2 months before the move-in date. Expect to pay a security deposit of about two months' rent and a utility deposit of about half a month, and the tenant usually pays the stamp duty. Photograph the unit and every item in it when moving in, ask for furniture you do not need to be taken out, and agree an early termination clause before signing. Deposits are often not returned when a tenancy ends early.
When to start looking
As a guide, 1 to 2 months before the move-in date. Most units are advertised for people who can move in soon, and landlords want an empty unit filled quickly. In our experience, if the move-in is more than 2 months away, landlords may turn down a viewing. Use the time before that to settle the budget, the area and the commute.
What landlords ask for
An Employment Pass is not needed to sign a tenancy. What matters in law is that the person is in Malaysia on a valid pass. Landlords will ask for the passport. In our experience they seldom ask to see the work pass itself, but it is worth having it, or the EP approval letter, at hand. Under section 55E of the Immigration Act, an occupier who lets someone without a valid pass stay can be fined RM5,000 to RM30,000 per person, so some landlords do check.
Hiring a foreign engineer for your team?
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee.
Talk to us about a hire →Not sure the salary qualifies? Check the Employment Pass category with our free EP checker.
Short-term options
For a stay of a few months, SPEEDHOME is worth a look. It is a rental platform where credit and income checks replace the cash security deposit, and the tenancy agreement is digital and stamped. Its agreements run from a 3-month minimum to 12 months, but whether a short term is accepted depends on the listing. Each listing shows a minimum tenure. Of 60 Kuala Lumpur listings we checked in October 2026, most said 12 months and some said "Flexible", so ask the landlord before a viewing. Platform fees apply; check the current terms on the site.
A short lease costs more. In our experience, the monthly rent is usually some tens of percent higher than on a normal 1 to 2 year lease. SPEEDHOME's own guide to 3 to 6 month rentals gives an example: a unit at RM2,000 a month on 12 months might be quoted at about RM2,200 to RM2,400 for 6 months, and more for 3 months. Several operators in Kuala Lumpur also rent furnished serviced apartments by the month, at a higher monthly price again.
Upfront costs and how the payments go
Most people find a unit on a property portal such as iProperty or PropertyGuru and then deal with the agent who listed it. In most rentals the landlord pays the agent's commission, so the tenant pays the agent nothing for the service. Confirm this before viewing. The payments usually go in this order, though each deal differs:
- A booking fee when the offer is accepted, often one month's rent. In our experience it is then treated as the first month's rent once the agreement is signed. Ask in writing what happens to it if either side pulls out.
- The fee for preparing the tenancy agreement. If a lawyer prepares it, the Solicitors' Remuneration Order 2023 sets the fee at 30% of one month's rent, with a minimum of RM500, for rents up to RM10,000 a month. Some agents prepare it for an administration fee instead, which guides put at roughly RM100 to RM300.
- Stamp duty on the agreement, usually paid by the tenant (calculation below).
- On signing, the security deposit and the utility deposit.
The first rent and the deposits often go through the agent. Pay into the agency's company account, not an agent's personal account.
| Example: RM3,000 a month, 2-year tenancy | Amount |
|---|---|
| Booking fee (becomes the first month's rent) | RM3,000 |
| Tenancy agreement prepared by a lawyer (30% of one month's rent) | RM900 |
| Stamp duty | RM432 |
| Security deposit (about 2 months) | RM6,000 |
| Utility deposit (about half a month) | RM1,500 |
| Total before moving in | About RM11,800 |
That is our own arithmetic, about four times the monthly rent, and it is due before the employee's first salary. The deposit amounts are market customs, not legal limits: Malaysia has no residential tenancy act in force yet (the bill was still being finalised in August 2026), so the tenancy agreement sets the terms. The security deposit usually cannot be used as the last month's rent unless the landlord agrees in writing.
How the tenancy stamp duty is calculated
A tenancy agreement must be stamped. LHDN's stamp duty guideline (30 June 2026) charges, for each RM250 of annual rent or part of it:
| Length of the tenancy | Duty per RM250 of annual rent |
|---|---|
| 1 year or less | RM1 |
| More than 1 year, up to 3 years | RM3 |
| More than 3 years, up to 5 years | RM5 |
| More than 5 years | RM7 |
A rent of RM3,000 a month is RM36,000 a year, or 144 units of RM250. On a 2-year tenancy the duty is 144 x RM3 = RM432. Stamping is done online through e-Duti Setem on MyTax. Keep the stamped copy. Banks such as CIMB and HSBC accept it as proof of a Malaysian address when the employee opens an account.
What to check before signing
- The condition of the unit and of every piece of furniture and appliance, including the air conditioners and water heater. Do not skip this. Damage found at move-out can be charged to the tenant.
- If an agent is involved, their REN tag. A REN (real estate negotiator) must be registered, and the number on the tag can be checked on the register of LPEPH, the board that regulates estate agents.
- The building's own rules, for example on pets and renovation.
- What the agreement says about the rent, the deposits and when they are returned, the length and renewal, repairs, utilities and maintenance fees, and ending the tenancy early.
- Who signs. A company lease keeps the home if the person changes, but the company then carries the obligations.
What you can negotiate
With no tenancy law setting the terms, most of the agreement is open. These are the points most often negotiated.
- The rent, especially on a longer lease or a unit that has been empty for a while.
- Who pays the stamp duty.
- An early termination clause, often called an expatriate or diplomatic clause, so the employee can leave with notice if the company transfers them. The landlord does not have to agree, but it can sometimes be negotiated. Ask before signing.
- Furniture and appliances. Agree what the landlord provides or replaces, and ask for anything the employee will not use to be removed before signing. An item left in the unit and never used can still break and end up on the tenant's bill.
- Who pays for repairs, such as air-conditioner servicing.
- Renewal: the notice to renew and how much the rent can go up.
Moving in and moving out
On moving in, list the furniture and appliances, photograph every room with the date, and have both sides sign the list. It works. At move-out, "it was already like this" carries little weight without evidence.
Give notice to end or renew as the agreement says; guides describe one to three months, but the clause decides. On moving out, settle the last utility bills, clean, take the photos again and do the handover inspection together.
The landlord can deduct unpaid rent and the cost of repairing damage or replacing lost items, and unpaid utilities from the utility deposit. Normal wear and tear is generally not a reason to deduct. No law sets a deadline for the refund. 14 to 30 days after handover is usual, so write a deadline into the agreement. If the employee is leaving Malaysia, plan the move-out together with the employer's own duties: see when a foreign employee leaves Malaysia.
Common problems
- Ending early. In our experience the deposit is usually not returned. Paying rent for the rest of the term is generally not required, but it depends on the agreement.
- Charges for furniture that was already damaged. This is where the move-in photos pay off.
- Large deductions from the deposit. Ask for an itemised list with receipts.
- Repairs that do not get done. Check the agreement and make requests in writing.
- Rent increases at renewal. Easier to settle in the agreement than later.
- Agent fees. Confirm who pays the agent, and how much, before anything is signed.
If a deposit dispute cannot be settled, a claim of up to RM5,000 can go to the Small Claims Court, where neither side uses a lawyer.
If the employee wants to buy
It is rarely practical. Under the federal guideline, foreigners may not buy property worth less than RM1,000,000 per unit, low and medium-low cost homes, property on Malay Reserve Land, or units allocated to Bumiputera buyers, and each purchase needs the state's consent. States can set higher minimums: Johor's land office lists RM1,000,000 and above, so check with the state land office before an offer. Since 1 January 2026 the transfer of a home to a foreign individual carries stamp duty of 8% of the price or market value, whichever is higher. Real Property Gains Tax for non-citizens is 30% on a sale within 5 years and 10% from the 6th year. Whether a bank will lend to an Employment Pass holder depends on the bank.
Settling in a foreign employee
- Relocating a foreign employee: HR checklist
- When a foreign employee leaves Malaysia: employer checklist
- Opening a bank account for a foreign employee
- Driving in Malaysia: licences for foreign employees
- Healthcare, SOCSO and EPF for foreign employees
- Income tax for foreign employees: what HR does
- Bringing the family: Dependant Pass, school and spouse work
- How to apply for an Employment Pass, step by step
How Seekers can help
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers for your team, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee. For the pass itself, see how to apply for an Employment Pass. Talk to us about a hire.
Frequently asked questions
Can a foreigner rent a house in Malaysia without an Employment Pass?
Yes. What matters in law is being in Malaysia on a valid pass. Landlords ask for the passport; in our experience the work pass is seldom asked for, but keep it at hand.
When should you start looking for a rental in Malaysia?
About 1 to 2 months before the move-in date. In our experience, landlords may turn down viewings if the move-in is more than 2 months away.
How much do you pay upfront to rent in Malaysia?
Typically a booking fee of one month's rent (which becomes the first month's rent), the tenancy agreement fee, stamp duty, a security deposit of about two months and a utility deposit of about half a month. For a RM3,000 unit that comes to about RM11,800.
Does the tenant pay the agent's commission in Malaysia?
In most rentals, no. The landlord usually pays it, but confirm before viewing.
How much deposit do you pay to rent in Malaysia?
Usually about two months' rent as a security deposit and about half a month's rent as a utility deposit. No law caps it.
Can you rent for 3 to 6 months in Malaysia?
Yes, for example through SPEEDHOME, whose agreements start from 3 months, if the landlord of that listing accepts a short term. Expect a higher monthly rent than on a 1 to 2 year lease.
When do you get the rental deposit back in Malaysia?
No law sets a deadline. 14 to 30 days after handover is usual, so put a deadline in the agreement.
Do you get the deposit back if you leave early?
Usually not, in our experience. Paying rent for the rest of the term is generally not required, but check the agreement.
How do you check a property agent in Malaysia?
Ask for their REN tag and check the number on the LPEPH register.
Who pays the stamp duty on a tenancy agreement?
Usually the tenant, but both sides can agree otherwise. On a 1 to 3 year tenancy it is RM3 for every RM250 of annual rent.
Sources
Stamp duty: LHDN, guideline on stamp duty under the First Schedule of the Stamp Act 1949 (30 June 2026), items 32(ab) and 49. Occupier's duty: Immigration Act 1959/63, section 55E, Immigration Department. Tenancy Bill: The Star, 4 August 2026. Short tenancies: SPEEDHOME guide (updated 26 October 2026) and SPEEDHOME listings checked on 28 October 2026. Tenancy agreement legal fee: Solicitors' Remuneration Order 2023, summary by Richard Wee Chambers; administration fee: iMoney. Booking fee and payment order: iBilik; paying the agency's account: MyRumahBaru. Deposit and stamp duty practice: EdgeProp guide (8 October 2026); deposit deductions: Malaysian Bar. Small claims: Office of the Chief Registrar. Bank proof of address: CIMB and HSBC. Buying: Ministry of Economy, Guideline on the Acquisition of Properties (13 July 2022); Johor state land office; RPGT: LHDN. This guide is general information, not legal or tax advice. Last checked: 28 October 2026.