Renting out property in Malaysia can be a rewarding source of income, but it is not without its headaches. Landlords often face issues ranging from delayed rent to uncooperative tenants. If you’re a landlord, you’ve probably asked yourself: “What to do if my tenant refuses to pay rent?” or “What to do if my tenant won’t move out after the agreement ends?”

These questions are more common than you think. The good news is, most tenant problems can be managed with the right strategies, proper documentation, and a strong tenancy agreement.

In this article, we’ll cover the top 10 tenant problems in Malaysia and provide step-by-step solutions for landlords to protect their property, finances, and peace of mind.

10 Tenant Problems and How Landlords in Malaysia Can Handle Them

1. Late or Missed Rental Payments

One of the most common tenant problems in Malaysia is late or missed rental payments. For landlords who rely on rental income to cover their housing loan, this can quickly become a financial burden. Many landlords in Malaysia face this issue when tenants consistently delay payments, make excuses, or even disappear without settling their rental dues.

What to do if my tenant pays rent late or refuses to pay?

Include Clear Clauses in the Tenancy Agreement Malaysia

A solid tenancy agreement in Malaysia is your first line of defense. Make sure the contract clearly states:

• The rental due date each month.
• Any grace period allowed (for example, 7 days).
• Penalties or late payment fees if the rent is not paid on time.

Having these terms in writing gives you a strong legal basis if disputes arise.

Choose Secure Payment Methods

• Request post-dated cheques or set up a standing instruction through the tenant’s bank.
• Avoid relying on cash, as it is difficult to prove in court if there is a dispute.
• Encourage bank transfers so that every transaction has a clear record.

Send Formal Reminders for Overdue Rent

• Start with a polite written reminder (email or WhatsApp).
• If there’s still no response, send a formal written notice.
• Keep copies of all communications as evidence in case you need to escalate.

Take Legal Action for Chronic Defaulters

• For tenants who repeatedly default, issue a legal letter of demand through a lawyer.
• If the outstanding amount is small, you can bring the case to the Small Claims Court in Malaysia.
• For larger sums or complex disputes, you may need to file a claim in the civil court.

Landlord Tip in Malaysia: Never accept cash payments without issuing an official receipt. Without proof of payment, you may lose your case if the matter is brought to court.

By setting clear rules and taking timely action, landlords in Malaysia can protect themselves from financial losses caused by late rental payments or non-paying tenants.

2. Property Damage

While normal wear and tear is expected in any rental unit, serious property damage caused by tenants is one of the most frustrating and costly tenant problems in Malaysia. Beyond simple scuff marks or minor paint issues, some landlords face situations where tenants leave behind broken tiles, cracked walls, water leakage due to negligence, or even damaged furniture in furnished apartments. Repairing these damages can drain your funds and delay your ability to rent the unit to the next tenant.

What to do if my tenant damaged the property?

Conduct Detailed Property Inspections

• Before handing over the keys, perform a thorough inspection of the property.
• Use a checklist and take clear photos or videos of every corner of the unit.
• At the end of the tenancy, conduct another inspection with the tenant present.
• Get both parties to sign the inspection report for mutual acknowledgment.

This protects landlords in Malaysia from disputes about whether the damage was pre-existing or caused by the tenant.

Collect a Proper Security Deposit

Under standard rental practices in Malaysia, landlords usually collect:

• 2 months’ rental deposit (security deposit).
• ½ month rental for utilities (utility deposit).

This deposit acts as a financial safety net to cover unpaid bills or repair costs caused by tenants. Make sure the deposit terms are clearly stated in the tenancy agreement Malaysia.

Clarify Repair Responsibilities in the Tenancy Agreement

• Outline in the agreement which repairs are the tenant’s responsibility (e.g., clogged sinks, broken lightbulbs, minor fixture issues).
• Specify that the landlord is responsible for major structural repairs, such as roof leaks or electrical wiring faults.

This helps prevent disputes when something breaks down during the tenancy.

Deduct Costs Fairly from the Deposit

• If damages are proven, landlords have the right to deduct the repair costs from the tenant’s deposit.
• Always provide receipts or invoices as evidence of the repair costs.

By being transparent, you minimize the risk of disputes and build credibility as a responsible landlord.

Landlord Tip in Malaysia: Always document damages and repair expenses with photos, videos, and receipts. If your tenant challenges your deductions in court, this evidence can protect you and prove that your claims are valid.

By taking these steps, landlords can safeguard their property and minimize financial losses from property damage by tenants in Malaysia. A well-drafted tenancy agreement and strong documentation habits are the keys to avoiding unnecessary disputes.

3. Unauthorized Subletting

Another serious tenant problem in Malaysia is unauthorized subletting, where a tenant rents out your property—or even just a room in it—without your knowledge or permission. This issue is more common in high-demand areas such as Kuala Lumpur, Selangor, or Penang, where tenants try to earn extra income by subletting to others through informal arrangements or even short-term platforms like Airbnb.

Unauthorized subletting can lead to:

• Overcrowding – multiple occupants staying in a unit meant for fewer people.
• Increased wear and tear – higher usage of appliances, utilities, and facilities.
• Security risks – strangers entering the property without proper background checks.
• Potential misuse – including commercial use or illegal activities that could get the landlord into trouble with building management or authorities.

What to do if my tenant sublets without permission?

Include a Strict “No Subletting” Clause in the Tenancy Agreement Malaysia

• State clearly that the tenant cannot sublet, rent out, or share the unit without written consent from the landlord.
• Outline consequences for breaching this clause, such as immediate termination of the tenancy.

This gives landlords in Malaysia a solid legal ground to act if unauthorized subletting is discovered.

Carry Out Regular Property Inspections

• Conduct inspections periodically, with prior notice to the tenant (as required by law).
• This ensures you can confirm that the original tenant is still the primary occupant.
• Look out for signs of overcrowding, such as multiple mattresses, extra locks on doors, or excessive personal belongings.

Exercise Termination Rights for Breach of Contract

• If unauthorized subletting is proven, you are within your rights to issue a breach of contract notice.
• Depending on the terms of the tenancy agreement, you may terminate the tenancy early.
• If the tenant refuses to vacate, legal action may be necessary to regain possession of your property.

Landlord Tip in Malaysia: Always screen tenants thoroughly and conduct periodic checks. Unauthorized subletting often happens when landlords are too “hands-off” with property management. If you can’t manage the property yourself, consider hiring a property manager to help monitor.

By taking preventive steps and enforcing a no-subletting policy, landlords in Malaysia can protect their property value, maintain security, and reduce risks associated with unauthorized tenants.

4. Disturbance and Noise Complaints

Another common tenant problem in Malaysia is dealing with disturbance and noise complaints. This usually happens when tenants regularly host loud parties, play music at high volume, or otherwise disrupt the peace of the neighborhood. For landlords of strata properties such as condominiums and serviced apartments, these issues often attract complaints from the Joint Management Body (JMB) or residents’ association.

Not only does this create tension with neighbors, but persistent noise issues may also damage the landlord’s reputation with building management. In some cases, the JMB may even impose fines on the property owner if the problem is not addressed.

What to do if my tenant causes noise or disturbance?

Insert a “No Disturbance” Clause in the Tenancy Agreement Malaysia

• Reference the building by-laws if the property is a strata unit.
• Include a clause stating that tenants must not cause nuisance, loud noise, or disturbances that inconvenience neighbors.

This sets a clear standard of behavior and gives you the right to act if the tenant breaches the terms.

Forward Complaints and Issue Written Warnings

• If neighbors or the JMB lodge complaints, immediately forward them to your tenant.
• Issue a formal written warning reminding them of their obligations under the tenancy agreement.
• Keep a record of all warnings issued as proof of repeated breaches.

Exercise Termination Rights for Repeat Offenses

• If the tenant continues to cause noise despite multiple warnings, you may treat this as a breach of contract.
• Issue a notice of termination in line with the tenancy agreement and reclaim possession of the property.
• In severe cases, you may need legal action to enforce eviction if the tenant refuses to leave.

Landlord Tip in Malaysia: Always act promptly when you receive disturbance complaints. Ignoring them may escalate the problem and even result in penalties from the building management. By enforcing rules early, you protect your property and maintain good relationships with neighbors.

By setting clear expectations and addressing issues quickly, landlords in Malaysia can effectively manage noisy tenants and maintain harmony within the property and surrounding community.

5. Refusal to Move Out After Tenancy Ends

One of the most stressful tenant problems in Malaysia is when tenants refuse to vacate the property even after the tenancy agreement has expired. Unlike some countries, Malaysia does not have a fast-track eviction system, so landlords can face prolonged delays and additional costs before regaining possession of their property.

Tenants who overstay can prevent you from renting the property to new tenants, disrupt cash flow, and sometimes even cause property damage while still occupying the unit.

What to do if my tenant refuses to move out after tenancy ends?

Send Early Reminders

• Notify tenants 1–2 months before the tenancy expires that the lease is ending.
• Send reminders via email, WhatsApp, or registered mail to create a formal record.
• Clear communication helps reduce misunderstandings and encourages tenants to plan their move.

Offer Incentives for Timely Vacating

• Consider offering early deposit refunds or small incentives to encourage tenants to leave on time.
• This approach can save time, reduce stress, and prevent legal escalation.

Follow Legal Eviction Procedures

• If the tenant still refuses to vacate, landlords must file an eviction suit in the civil courts.
• Avoid taking matters into your own hands—self-eviction methods such as changing locks, cutting utilities, or removing belongings are illegal in Malaysia and can result in legal penalties.
• Court action may take time, but it is the safest way to regain possession without risking liability.

Landlord Tip in Malaysia: Always plan extra buffer time between tenancies to account for possible delays in regaining possession. This ensures you don’t face a sudden loss of rental income if a tenant overstays.

By staying proactive and following legal procedures, landlords in Malaysia can handle tenants who refuse to move out efficiently while protecting their property and rights.

6. Poor Maintenance and Cleanliness

A common yet often overlooked tenant problem in Malaysia is poor maintenance and cleanliness. Some tenants neglect basic cleaning duties, which can quickly lead to serious issues such as:

• Pest infestations from leftover food or uncleaned areas.
• Clogged sinks and drains due to improper disposal of waste.
• Mold or mildew growth from poor ventilation or dampness.
• Damaged fixtures or fittings that deteriorate faster than expected.

Neglected upkeep not only reduces the property’s value but can also increase repair costs, disrupt future rentals, and make your property less attractive to new tenants.

What to do if my tenant doesn’t maintain the property?

Set Clear Responsibilities in the Tenancy Agreement Malaysia

• Specify that tenants are responsible for routine cleaning and minor maintenance tasks.
• Include examples such as cleaning floors, toilets, kitchen surfaces, and keeping the garden tidy if applicable.
• Clarify that failure to maintain the property may result in deductions from the security deposit.

Conduct Periodic Inspections

• Schedule routine inspections during the tenancy, providing proper notice as required by law.
• Use these inspections to ensure the tenant is keeping the property clean and well-maintained.
• Document any issues with photos or videos for future reference.

Deduct Costs Fairly from the Security Deposit

• If a tenant leaves the property dirty or poorly maintained upon move-out, you are entitled to deduct cleaning or repair costs from the security deposit.
• Always provide receipts or invoices as proof to avoid disputes.

Landlord Tip in Malaysia: Clearly document maintenance expectations and conduct inspections regularly. This not only prevents long-term damage but also gives you legal grounds if a tenant leaves the property dirty or poorly maintained.

By enforcing cleaning standards and routine inspections, landlords can manage tenant poor maintenance in Malaysia effectively and protect the condition and value of their property.

6. Unpaid Utility Bills

Another common tenant problem in Malaysia is unpaid utility bills. When utilities like electricity, water, or internet remain under the landlord’s name, unpaid bills can accumulate quickly, cutting into rental returns and creating unnecessary financial stress. This issue is especially common in cases where tenants delay payment or refuse to settle bills altogether.

What to do if my tenant refuses to pay utility bills?

Register Utilities in the Tenant’s Name Whenever Possible

• For utilities such as TNB (Tenaga Nasional Berhad), Syabas, or Indah Water, it is best to have them registered under the tenant’s name.
• This ensures the tenant is directly responsible for payment, reducing the landlord’s financial risk.
• If utilities must remain in your name, maintain clear records and monitor bill payments closely.

Collect a Utility Deposit

• Include a utility deposit in the tenancy agreement, typically equivalent to ½ month’s rental.
• This deposit can cover unpaid utility charges and serve as a financial safeguard.
• Clearly state in the tenancy agreement that unpaid bills may be deducted from the deposit.

Require Proof of Payment

• Ask tenants to provide monthly receipts or screenshots of payment as proof.
• Keep a record of all submitted receipts to avoid disputes and maintain accountability.
• Periodically cross-check with utility companies if necessary.

Landlord Tip in Malaysia: Always include clear terms regarding utility payments in your tenancy agreement Malaysia. This ensures tenants understand their responsibilities and provides you with legal grounds to recover unpaid bills if necessary.

By taking proactive steps such as registering utilities under the tenant’s name, collecting a utility deposit, and tracking payments, landlords can significantly reduce the risk of unpaid utility bills in Malaysia and protect their rental income.

7. Difficult or Non-Communicative Tenants

A frustrating tenant problem in Malaysia is dealing with difficult or non-communicative tenants. These are tenants who avoid answering calls, ignore messages, or refuse to cooperate even on minor issues like maintenance requests or utility payments. Poor communication can delay repairs, escalate disputes, and create unnecessary stress for landlords.

What to do if my tenant won’t respond?

Maintain Written Communication Records

• Always document communication via email, WhatsApp, or text messages.
• Written records serve as proof if disputes arise later.
• Keep all correspondence organized with dates and times for reference.

Send Official Notices for Important Matters

• For serious issues, use formal letters sent via registered post.
• Examples include overdue rent, property damage, or breach of tenancy agreement.
• A registered letter provides legal evidence that the tenant has been notified.

Escalate Legally if Necessary

• If the tenant continues to ignore you, engage a lawyer to act on your behalf.
• Lawyers can send legal notices, represent you in disputes, or initiate court action if required.
• Following legal procedures ensures you stay protected under Malaysian landlord rights.

Landlord Tip in Malaysia: Always set clear expectations in your tenancy agreement Malaysia regarding timely communication and cooperation. This helps prevent tenant communication problems and gives you a stronger position if legal action becomes necessary.

By keeping detailed records and following formal procedures, landlords can manage non-communicative tenants in Malaysia effectively and reduce risks of unresolved disputes.

9. Unauthorized Renovations or Alterations

Another tenant problem in Malaysia is unauthorized renovations or alterations. Some tenants may repaint walls, install shelves, or even make structural changes to the property without your permission. While these changes might seem minor, they can:

• Reduce the property’s value.
• Cause costly repairs to restore the unit.
• Lead to disputes over deposit deductions if changes are not approved.

What to do if my tenant makes changes to the property?

Include a Prohibition Clause in the Tenancy Agreement Malaysia

• Clearly state that tenants cannot carry out renovations, alterations, or structural changes without your written consent.
• Include examples such as painting walls, drilling holes, installing fixtures, or modifying electrical or plumbing systems.

This clause gives you legal grounds to enforce compliance.

Require Restoration to Original Condition

• Specify that tenants must restore the property to its original condition at the end of the tenancy.
• Include clear expectations regarding wall paint, flooring, fittings, and other modifications.

This ensures the unit is ready for the next tenant without additional costs to you.

Deduct Costs from Security Deposit if Necessary

• If tenants fail to restore the property, you are entitled to deduct repair or restoration costs from their security deposit.
• Always provide receipts or invoices as evidence to avoid disputes.

Landlord Tip in Malaysia: Document the property’s original condition with photos and a signed checklist before the tenant moves in. This protects you if any unauthorized renovations occur and ensures deposit deductions are justified.

By setting clear rules and enforcing restoration obligations, landlords can effectively handle unauthorized renovations in Malaysia and protect their property’s value.

10. Illegal Activities

One of the most serious tenant problems in Malaysia is when tenants engage in illegal activities on your property. Examples include gambling, drug use, or running an unlicensed business. Allowing such activities whether knowingly or unknowingly can expose landlords to legal liability, fines, or even criminal investigations. Acting promptly is crucial to protect yourself and your property.

What to do if my tenant uses property for illegal activities?

Screen Tenants Thoroughly Before Signing the Agreement

• Always conduct background checks before renting your property.
• Verify employment letters, personal references, and IC/passport copies to ensure credibility.
• Proper screening reduces the risk of renting to tenants with a history of illegal activities.

Include Strict Clauses in the Tenancy Agreement Malaysia

• Explicitly prohibit the use of the property for illegal purposes.
• State that breach of this clause allows immediate termination of the tenancy.

Clear rules in the agreement provide a strong legal foundation if you need to act.

Take Immediate Action if Illegal Activity is Discovered

• Report the activity to the police or relevant authorities immediately.
• Serve the tenant a notice of termination of tenancy in line with your tenancy agreement and legal procedures.
• Avoid taking the law into your own hands, do not confront tenants aggressively or attempt self-eviction, as this can backfire legally.

Landlord Tip in Malaysia: Maintain regular property inspections and monitor unusual activity. Quick detection of tenant illegal activities protects your property, ensures compliance with the law, and safeguards your reputation as a landlord.

By screening tenants carefully, including strict clauses in your tenancy agreement, and taking swift legal action, landlords can minimize the risks associated with illegal activities by tenants in Malaysia.

 

Being a landlord is not just about collecting rent, it’s about managing risks, protecting your property, and understanding your rights.

To minimise tenant problems:

• Always use a comprehensive tenancy agreement.
• Screen tenants carefully before signing.
• Collect adequate deposits.
• Keep written records of all communications and inspections.

Most importantly, always follow proper legal channels. Taking matters into your own hands like locking tenants out or cutting utilities can expose you to lawsuits in Malaysia.

By understanding what to do if your tenant refuses to pay rent, won’t move out, or causes damage, you’ll be better prepared to handle issues efficiently and safeguard your investment.

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