Security Deposit: Your Rights and Obligations
The standard security deposit in Malaysia is 2 months' rent, plus a utility deposit of 0.5 months. This money belongs to the tenant until you have a legitimate reason to deduct from it.
You can legally deduct from the security deposit for unpaid rent, physical damage beyond fair wear and tear, and outstanding utility bills. You cannot deduct for normal wear and tear such as faded paint, minor scuffs, or worn carpets from normal use.
Right of Entry
Even though you own the property, your tenant has the right to quiet enjoyment. This means you cannot enter the property without giving 24 hours' written notice except in genuine emergencies such as fire, flooding, or gas leaks.
Entering without notice, even to inspect or repair, is a breach of your tenant's right and could invalidate your tenancy agreement. WhatsApp notice is widely accepted as written notice in Malaysian courts.
Repairs and Maintenance
The responsibility for repairs depends on what caused the damage. As a landlord, you are responsible for structural repairs, major systems such as plumbing and electrical infrastructure, and anything that makes the property uninhabitable.
Tenants are responsible for minor maintenance such as replacing light bulbs, unblocking drains they have caused to be blocked, and keeping the property clean. Appliances provided with the unit are generally the landlord's responsibility unless the tenant has misused them.
When a Tenant Doesn't Pay Rent
The correct process when a tenant fails to pay rent is clearly defined under the Distress Act 1951. You cannot cut off utilities, change locks, or remove the tenant's belongings. These actions are illegal and could result in criminal charges against you.
The legal process is: issue a formal Notice to Pay, then apply to the court for a Writ of Distress or eviction order. Without a stamped tenancy agreement, you have no standing in court.
Eviction: The Legal Process
You cannot evict a tenant without a court order. The standard process is to serve a Notice to Quit (typically 2 months' notice for a 12-month tenancy), then apply to court if the tenant refuses to leave. Court proceedings can take 3 to 6 months.
This is why prevention matters. A proper tenancy agreement, CTOS screening before accepting a tenant, and automated rent reminders significantly reduce the risk of ending up in this situation.
Renewing vs Not Renewing
You have the right to not renew a tenancy when the agreement expires. You do not need to give a reason. However, you must give proper notice as specified in the agreement (typically 2 months). If you want to sell the property, you must honour the existing tenancy agreement until it expires unless the agreement contains a sale clause.