Residential Tenancy Act, a better Malaysia in 2021

Residential Tenancy Act is aim to have better than good, is it coming into Malaysia for real? I personally would love it and here is some essential points of view from my real estate journey.
Residential Tenancy Act, a better Malaysia in 2021

1. What is Residential Tenancy Act?

What is Residential Tenancy Act to be enforced in two years by The Star posted on Tuesday, 02 Apr 2019 7:50 AM MYT

“The proposed Act will study the standards and benchmark used in the similar Act in New South Wales and Victoria, Australia but will be tailored to local context suitability,” she said.

So let’s check on the Act in New South Wales And Victoria, Australia, top related result Decoding Victoria’s proposed tenancy laws Read More»

Residential Tenancy Act, a better Malaysia in 2021


  • Landlords will only be able to increase the rent once a year
    • To curb from excessive rental increase especially where the high demand area which landlord would get a better offer while the tenancy is still ongoing…
  • Rental bidding will be outlawed
    • Properties will need to be advertised with a fixed price, and landlords will not be able to accept a higher price. 
  • New limits on rental bonds
    • Maximum up to a month rental bonds
    • Tenants will be able to apply for bond release without landlord’s consent
    • Tenants will get their bond back much quicker
  • Rental security and greater protections
    • Landlords must give a reason to ask people to move out (regain possession)
    • Rental properties will need to meet minimum standards
Residential Tenancy Act, a better Malaysia in 2021 1
  • Pets and repairs
    • Landlords will no longer be able to automatically include a “no pets clause” in rental agreements without having to justify their decision.
    • Tenants will be able to make minor modifications, such as hanging pictures, installing air conditioning or adding reasonable security measures, without the landlord’s consent.
    • Tenants are entitled to reimbursement from the landlord for money spent on urgent repairs after seven days.
Residential Tenancy Act, a better Malaysia in 2021
  • Landlords will only be able to hold two inspections per week
    • If you choose not to renew your lease, your landlord will only be able to show prospective tenants around the property two times every week.
    • The inspections should last no more than one hour, and should only be scheduled within 21 days of the fixed tenancy agreement.

Again, you can read in full here.

2. Why do we need a Residential Tenancy Act

In short…

Advantages of having Residential Tenancy Act

Advantages for Landlord

  • Faster regain possession for the owner
  • Free from Tenancy Agreement Fee

In the case of a standardised remedy, ownership of the remedy can be regained more quickly, and the process is likely to be very clear.

This could really enhance and shorten up the duration of enforcement.

Advantages for Tenant

  • Standardised and predictable rental protection
  • To curb from excessive rental increase
  • Pets are allowed with consent
  • Urgent repairs reimbursement
  • Minor modifications without consent
  • Limited “viewing” lesser hassle while ending tenancy

3. Before “Residential Tenancy Act” come in Real

Before the Residential Tenancy Act come into Malaysia for real, what do you need when you are looking to rent a house?

As for now, majority may be sign a completely different Tenancy Agreement when we rent a house today.

Depending on Tenant’s Experience Versus Landlord’s Experience

By common practice in life,

Landlord will have more experience because they will continue to rent out their property for a new tenant.

But a tenant would like to purchase their own house after a year or two year tenancy after they decided to settle down. (Many only rent once in a lifetime)

So, it’s very common that the Tenancy Agreement can be extremely biased to the owner most of the time…

By anyone to draft their own Tenancy Agreement, this is exactly why in Malaysia our legal enforcement is really slow…

4. More experiences than Landlord

In above practice, who do you think will have more experiences in Malaysia in dealing with Property Rental?

I would say a Senior Real Estate Negotiator / Consultant above 3 years will have more experiences than majority of landlords.

And how we a spot a reliable property agent? Read 7 clues to spot a reliable property agent.

Similar article on news

Malaysian Government Latest Policy On Housing & Real Estate • 5th Jun 2020

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