Residential Tenancy Act Malaysia
Residential Tenancy Act Malaysia

What is Residential Tenancy Act Malaysia?

The proposed Residential Tenancy Act (RTA) by the Ministry of Housing and Local Government (KPKT) will change the rental market in Malaysia.

There is no specific legal framework for landlords and tenants in Malaysia now.


The Objectives of RTA are to :

  1. protect homeowners’ and tenants’ rights.

  2. prepare a uniform template for the residential tenancy agreement.

  3. establish a tribunal to resolve disputes between homeowners and tenants.

  4. set a notice period for tenants to move out.


Security and Utility Deposits

An RTA proposes a two-month deposit and a one-month utility deposit.

An RTA proposes deposits to be “parked” with a government agency.

This is to ensure that the authorities would be able to address any conflict between landlords and tenants later on.

In the event that no other expenses have been incurred, the security deposit would then be returned to the tenant once the tenancy agreement expires.


  1. Why park the deposits received with a government agency?

  2. How long will the agency refund the deposit upon termination/expiration of tenancy period?

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Published : 23-May-2022

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