A guide for foreigners on real estate rental in Malaysia.
Rental properties in Malaysia are diverse in price and quality. Many foreigners prefer the gated environs and modern facilities of condominiums, including swimming pools, badminton courts, and elevated levels of security, though these features are inevitably reflected in the price. Properties may be furnished or unfurnished, although the quality of furnishings can vary considerably. Tenants accustomed to a particular standard of furniture should keep this in mind when choosing a furnished rental property.
Malaysia regions in brief
Peninsular Malaysia
Kuala Lumpur (KL) is the capital and largest city in Malaysia, with a population of around 1.8 million. Although traffic is a consideration, there are many popular residential areas within and close to the centre of the city.
Directly within the city centre of KL, condominiums and apartments are likely to appeal mainly to couples and singles, though some condominiums may have playgrounds and other facilities for families. There are major shopping malls within walking distance as well as restaurants, bars and cafes.
Bukit Damansara, also known as Damansara Heights, is located to the north less than 5 kilometres from the city centre and highly sought-after for its detached houses and luxury condominiums.
To the northwest of KL, Mont Kiara is a township of mostly residential condominiums popular with families for the international schools in the area. It is about 15 minutes from central KL.
To the southwest, you’ll find affluent Bangsar, with more bungalows in addition to condominiums, about 10 minutes from the city centre.
Ampang, to the northeast, is home to many of the foreign embassies in KL, as well as gated communities, international schools and acclaimed healthcare facilities.
Penang
Old-world charm is a phrase that is often used to describe Penang, and UNESCO agrees, listing the historic capital of George Town as a World Cultural Heritage Site. It is possible to live in one of the colonial era shophouses here, from around RM4,000 a month.
East Malaysia: Sabah and Sarawak
With a population of 3.5 million, Sabah is one of two Malaysian states on the island of Borneo. Kota Kinabalu (or KK to the 450,000 locals) is the capital. Sarawak is the other Malaysian state on Borneo. Although at 2.6m its population is slightly smaller than Sabah’s, its total area is nearly twice as large. The capital Kuching is said to be the most sophisticated on Borneo. Kuala Lumpur is less than 2 hours away by air.
Tenancy versus lease
An agreement for a rental period of less than three years is a tenancy. Most tenancies are 2 years plus options for up to 3 yrs maximum. Beyond this timeframe the lease becomes a registrable interest and must be registered on title of the property.
Rental payments
Rental properties are measured in terms of square feet of Gross Floor Area and Net Lettable Area (NLA). The rental deposit, or bond, is usually equivalent to three months’ rent, with rent payments made monthly, in advance. Tenure is secured for the duration of the tenancy, but tenants do not have statutory rights to renewal. Rent increases and reviews are dependent upon open market rental values, and usually come around every three years.
Service charges, operating costs, repairs and insurance
Tenants are usually responsible for utilities such as electricity and telecommunications, in addition to internal repairs to the property.
In Peninsular Malaysia, Tenaga Nasional Berhad supplies electricity. Billing and change of tenancy application forms can be found online, or at local customer service centres (known as Kedai Tenaga). A description of the expected electricity tariffs can be found here. In Sabah, electricity is supplied by Sabah Electricity Sdn. Bhd. (their one stop customer service number is 1-800-88-1135) while in Sarawak, Syarikat Sesco Berhad is the supplier. Home phone lines can be connected by Telekom Malaysia.
Maintenance and repairs of common parts of the property (stairs, lift, etc.), external structures, and building insurance are the responsibility of the landlord. A car park may be provided for tenants, usually based on the ratio of one parking space per 1000 square feet leased.
Short term rentals
If you are planning only a short stay, it is easy to find rental accommodation for less than a month in Malaysia. Online listing sites such as iBilik show room, homestay and short term rentals from 1 day. Rent for short-term accommodation is generally paid upfront. Serviced apartments are also readily available, from names such as Ascott and Frasers.
Expat services: Malaysia My Second Home
The Malaysian Government has a program called Malaysia My Second Home which allows foreigners who meet certain criteria, to stay in Malaysia on a multiple-entry social visit pass. The Social Visit Pass is initially for a period of ten years, and is renewable.
Registered agents of the program are able to assist successful applicants with transportation and accommodation on arrival in Malaysia as well as banking and insurance. Agents can also identify which of the program’s incentives are available, and additional services including purchase or rental of real estate, applications for car, maid and applying for utilities accounts. A list of registered agents can be found here.
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