Rent Increase Notice (Malaysia)
NOTICE OF RENTAL INCREASE
Date: [Notice Date]
TO: [Tenant Name]
Property: [Property Address]
FROM: [Landlord Name]
Contact: [Landlord Contact]
NOTICE OF RENTAL INCREASE UPON RENEWAL
Dear [Tenant Name],
We refer to the Tenancy Agreement dated [Current Tenancy Date] for the above-mentioned property (the "Property"), which expires on [Tenancy Expiry].
We hereby give you notice that upon renewal of the tenancy, the monthly rental for the Property will be revised as follows:
Current monthly rent: [Current Rent]
New monthly rent: [New Rent]
Effective date: [Effective Date]
Renewal period: [Renewal Period]
A security deposit top-up of [Deposit Top-Up] will be required to bring the total deposit to two (2) months of the new monthly rent.
YOUR OPTIONS
Please respond to this Notice no later than [Response Deadline]:
(a) If you wish to renew the tenancy at the new rental of [New Rent] per month, please confirm your acceptance in writing and arrange for execution of a new Tenancy Agreement and payment of the deposit top-up.
(b) If you do not wish to renew at the new rate, you are requested to deliver vacant possession of the Property on or before [Tenancy Expiry] in accordance with the terms of the existing Tenancy Agreement.
If we do not receive your response by [Response Deadline], we will assume that you do not intend to renew the tenancy and will make arrangements accordingly.
Landlord
________________
Signature
What Is a Rent Increase Notice (Malaysia)?
A Rent Increase Notice in Malaysia gives formal notice of the matter it concerns to the recipient.
Malaysia does not have a Residential Tenancies Act that limits the amount by which a landlord may increase rent, unlike jurisdictions such as the United Kingdom (which has annual rent increase mechanisms under the Housing Act 1988) or Singapore (where rent review is governed by the standard Tenancy Agreement under the Singapore Law Academy guidelines). Malaysian rental increases are governed entirely by the Contracts Act 1950 (Act 136) and the terms of the tenancy agreement. A landlord may propose any rent increase, subject to the principle that an existing fixed-term tenancy cannot be varied unilaterally mid-term without the tenant's written consent.
For periodic tenancies (month-to-month tenancies that arise after a fixed-term tenancy expires without formal renewal), a rent increase requires notice equivalent to the rental period — typically one calendar month's notice for monthly tenancies under common law principles applied by Malaysian courts. For fixed-term tenancies, a rent increase takes effect only at the expiry of the fixed term, and the landlord must give written notice of the proposed new rent before the expiry date — typically two to three months before expiry as required by the tenancy agreement's renewal clause.
The Inland Revenue Board of Malaysia (LHDN) requires landlords to declare rental income under Section 4(d) of the Income Tax Act 1967 (Act 53). An increase in rent must be reflected in the landlord's income tax returns and, if a new tenancy agreement is executed at the higher rate, the agreement must be stamped at LHDN under the Stamp Act 1949 (Act 378) at the applicable rate based on the new annual rent.
The legal framework governing the Rent Increase Notice (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Rent Increase Notice (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Rent Increase Notice (Malaysia)?
A Rent Increase Notice in Malaysia is needed whenever a landlord proposes to increase the monthly rental amount payable by an existing tenant.
A Rent Increase Notice is required before the renewal of a fixed-term tenancy where the landlord intends to renew the tenancy at a higher rental rate. Under standard Malaysian tenancy agreements, the landlord must provide notice of the new rental rate before the expiry of the existing term — typically two to three months before expiry — to allow the tenant to consider whether to renew at the new rate or to vacate.
A Rent Increase Notice is needed for a periodic tenancy that has converted to a month-to-month tenancy after the expiry of the original fixed term without renewal. The landlord must give at least one month's advance written notice before any rent increase takes effect for periodic tenancies under common law principles applicable in Malaysia.
A Rent Increase Notice is required when market rental rates in a locality have increased substantially — for example, due to infrastructure improvements, new MRT or LRT stations opening nearby, or commercial development in the area — and the landlord wishes to align the tenant's rent with current market rates.
A Rent Increase Notice is needed when the strata development's maintenance charges or sinking fund contributions have increased under Section 61 of the Strata Management Act 2013 (Act 757), increasing the landlord's holding costs, and the landlord wishes to pass part of the increase to the tenant.
A Rent Increase Notice is required as documentation for LHDN income tax filing purposes where the rental income declared by the landlord under Section 4(d) of the Income Tax Act 1967 (Act 53) changes from the previous tax year.
What to Include in Your Rent Increase Notice (Malaysia)
A complete Rent Increase Notice for Malaysia must contain the following essential elements.
Landlord details: Full legal name, MyKad or SSM number, and contact address of the landlord or authorised agent registered with BOVAEA under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242).
Tenant details: Full legal name(s) and address of the tenant(s) as stated in the current tenancy agreement. All joint tenants must be addressed in the notice.
Property description: Full address of the tenanted property, including unit number, development name, and postcode. The existing tenancy agreement reference and date should be cited.
Current rental amount: The existing monthly rental amount under the current tenancy agreement, clearly stated in Malaysian Ringgit (RM) to establish the baseline before the increase.
Proposed new rental amount: The new monthly rental amount proposed by the landlord, stated in RM. The percentage or absolute amount of the increase should be stated for transparency.
Effective date: The date from which the new rental rate is to take effect. For fixed-term tenancy renewals, this is typically the first day of the new tenancy term. For periodic tenancies, this must be at least one calendar month from the date of the notice.
Notice period and response deadline: The period within which the tenant must confirm acceptance of the new rental rate or give notice of their intention to vacate. Standard practice in Malaysia is to give the tenant two to four weeks to respond.
New tenancy agreement: Whether the rent increase will be formalised through a new tenancy agreement (which will need to be stamped at LHDN under the Stamp Act 1949) or through a written addendum to the existing agreement.
Additional compliance elements for a Rent Increase Notice (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Rent Increase Notice (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/notices/rent-increase-notice-malaysia
"Rent Increase Notice (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/notices/rent-increase-notice-malaysia.
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year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/notices/rent-increase-notice-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}Also available for these jurisdictions:
Frequently Asked Questions
A landlord in Malaysia cannot unilaterally increase rent during the fixed term of a tenancy agreement without the tenant's written consent. Under the Contracts Act 1950 (Act 136), a fixed-term tenancy agreement is a binding contract, and the rental amount is a fundamental term that cannot be varied mid-term by one party alone. A landlord who attempts to increase rent during the fixed term without consent, or who harasses the tenant to accept a higher rent, may be in breach of the implied covenant of quiet enjoyment — exposing the landlord to civil liability. A rent increase may only take effect at the expiry of the fixed term, when the landlord proposes new terms for renewal. The tenant is then free to accept the new terms and renew, or to decline and vacate at the end of the existing term. If the tenant stays beyond the expiry without a new agreement being signed, a month-to-month tenancy arises at the same rent as the expired tenancy, unless both parties agree to new terms.
Malaysia has no statute prescribing a minimum notice period for rent increases in residential tenancies — the required notice period is determined by the terms of the tenancy agreement or, in the absence of an express provision, by common law principles. For fixed-term tenancies, Malaysian tenancy agreements typically contain a renewal clause requiring the landlord to give two to three months' notice of the new rental terms before expiry of the current term. For periodic (month-to-month) tenancies, common law requires notice equivalent to the rental period — meaning one calendar month's notice for monthly tenancies. Landlords are advised to give written notice by AR Registered Post or by hand with acknowledgement of receipt to create a documentary trail. A landlord who fails to give adequate notice and purports to increase the rent with immediate effect exposes the landlord to a breach of contract claim by the tenant under the Contracts Act 1950 (Act 136).
Malaysia currently has no statutory cap on rent increases for residential properties — unlike Germany's Mietpreisbremse (rent brake), the United Kingdom's annual rent review mechanism under the Housing Act 1988, or Singapore's regulated approach. A landlord in Malaysia may propose any rental increase, and the tenant's only protection is their right to decline the increase and vacate at the end of the notice period. The Ministry of Housing and Local Government (KPKT) proposed a Residential Tenancy Act that would include rent increase provisions, but this legislation had not been enacted as of 2024. The absence of rent control in Malaysia has resulted in significant rental price volatility in urban areas — particularly in Kuala Lumpur, Petaling Jaya, and Penang — following periods of strong economic growth or infrastructure investment. Tenants facing excessive rent increases may negotiate with landlords or opt to vacate; there is currently no tribunal or regulatory body to challenge the quantum of a proposed rent increase.
If a tenant in Malaysia refuses a proposed rent increase upon renewal of a fixed-term tenancy, the tenant has the right to vacate the property at the expiry of the existing tenancy by giving the notice required under the tenancy agreement. The tenant is not legally obliged to accept any rent increase and cannot be forced to pay a higher rent during the current fixed term. If the tenant neither accepts the new terms nor vacates at the expiry of the tenancy, they become a holdover tenant occupying the property on a month-to-month basis at the original rent — a position that the landlord may terminate by giving one month's notice under common law. For a landlord to forcibly evict a holdover tenant, the landlord must obtain a court order from the Magistrates' Court under Order 89 of the Rules of Court 2012 — self-help eviction (changing locks, removing possessions) is unlawful and constitutes trespass. A landlord who wishes to ensure the property is vacated should send a formal notice to quit upon the tenant's refusal to accept the new terms.
Whether a rent increase in Malaysia requires a new tenancy agreement or may be effected by a written addendum to the existing agreement depends on the terms of the current tenancy agreement and the parties' preference. For a fixed-term renewal at a new rent, best practice is to execute a new tenancy agreement covering the new term and new rental rate, which must be stamped at LHDN under the Stamp Act 1949 (Act 378) — stamp duty is assessed on the annual rent at rates prescribed in Item 22 of the First Schedule. A written addendum signed by both parties — formally varying the rental amount while incorporating all other terms of the existing agreement by reference — is a less expensive alternative to a fresh tenancy agreement, but must also be stamped if it increases the total rent payable. An unwritten agreement to pay a higher rent is enforceable under the Contracts Act 1950 but is inadmissible as evidence in court proceedings unless the unstamped duty is paid under Section 52 of the Stamp Act 1949 before admission.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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