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This is for owners in Johor Bahru who want to let their unit to someone who works in Singapore and crosses the border every day. The short answer: these tenants pay for time saved, so location relative to the checkpoint matters more than anything else, and the paperwork and tax rules are the same as for any other tenant in Malaysia.
Who these tenants are
Cross-border commuting is not a niche. A Johor state committee chairman put the average at about 250,000 travellers a day through the Causeway in 2023, above pre-Covid levels. Bernama, reporting on the Johor market in June 2025, named Malaysians working in Singapore and Singaporeans alongside locals as the groups driving residential demand, and expected growth particularly in the rental market.
In my experience the group splits roughly three ways:
- Malaysians working in Singapore who are not from JB, or who want to be closer to the checkpoint than the family home.
- Singaporeans and Singapore residents who want more space for the money and accept the commute.
- Couples and small families where one partner works in Singapore and the other works or studies in JB.
Most are working professionals on a fixed schedule. They tend to be steady payers, but they are also quick to move if the commute gets worse or a better unit appears nearer the border.
Which areas they choose
Commuters think in minutes to the checkpoint, not in postcodes. Broadly, I see four pockets:
- JB Sentral, Bukit Chagar and the city centre. Walking distance to the Causeway customs complex, and to the Bukit Chagar station of the RTS Link. Commuters who walk or take the bus across value this most. More detail is on my JB Sentral and Bukit Chagar page.
- Areas a short drive from the Causeway, such as Bukit Senyum, Stulang and the coastal strip towards Danga Bay. These suit tenants who drive or ride across and want quick access to the highway.
- Areas along feeder bus routes into JB Sentral. These will matter more once the RTS Link opens, because the train only helps people who can reach Bukit Chagar easily.
- The Second Link side (Iskandar Puteri, Gelang Patah), for people working in western Singapore in Tuas or Jurong, who use the Second Link instead of the Causeway.
The RTS Link: what it changes and what it does not
Passenger service is now estimated to start in February 2027, not end-2026. A joint statement by Malaysia’s Transport Ministry and Singapore’s Land Transport Authority on 2 October 2026 said the date still depends on independent safety certification and final regulatory approval. The fare had not been announced as of that date; both governments have said it will be announced jointly.
The Straits Times reports a capacity of up to 10,000 passengers an hour in each direction and a journey of about five minutes. The Star reported in August 2026 an anticipated ridership of about 40,000 a day. Compare that with roughly 250,000 daily Causeway travellers: the train will help a meaningful group, but most commuters will still drive, ride or take the bus. So I would not assume every unit in JB gets an RTS premium. Walking distance to Bukit Chagar is the realistic advantage. My RTS Link property page covers the buying side.
What commuter tenants expect
- Full furnishing. Beds, sofa, fridge, washing machine, curtains, water heater and air-conditioning in every bedroom. Most do not want to buy furniture for a one- or two-year stay.
- Parking. At least one bay for drivers. Motorcyclists ask about secure motorcycle parking.
- Reliable internet. Fibre already installed, or at least available in the building. Many work some days from home.
- A short, predictable commute. They will ask how long it takes to reach the checkpoint at 6am. Be honest; they will test it.
- Simple admin. Clear access cards, a responsive owner or agent, and rent paid by bank transfer.
Supply is not scarce. A single portal showed about 3,200 condominium listings for rent in Johor Bahru in early October 2026, so a unit that is tired, unfurnished or overpriced will sit. To price yours, I compare recent rents for similar units in the same building rather than relying on headline averages; the rental yield calculator helps you check the numbers.
Tenancy agreement basics
Malaysia has no law that fixes deposits. The common market practice is two months’ rent as security deposit, half to one month’s rent as utility deposit and the first month’s rent in advance, often called “2+1” with a utility deposit on top. Everything is negotiable and should be written into the agreement.
The tenancy agreement must be stamped with LHDN within 30 days of signing. Since 1 January 2026, tenancy agreements fall under Phase 1 of LHDN’s stamp duty self-assessment system, filed through e-Duti Setem on MyTax. The earlier exemption on the first RM2,400 of annual rent no longer applies; reports differ on when it ended (1 January 2025 according to Rödl & Partner, 2026 according to PropertyGuru), but either way it does not apply to an agreement signed now.
| Example: rent RM2,500 a month | One-year tenancy | Two-year tenancy |
|---|---|---|
| Annual rent | RM30,000 | RM30,000 |
| Units of RM250 | 120 | 120 |
| Rate per RM250 | RM1 | RM3 |
| Stamp duty on the agreement | RM120 | RM360 |
Who pays is agreed in the contract; in practice it is usually the tenant. Late stamping attracts a penalty. My general landlord and tenant guide has the step-by-step process.
Tax on the rent
Rental income is taxable in Malaysia. If you are a Malaysian tax resident, it is added to your other income and taxed at your normal progressive rates. If you are not resident (broadly, in Malaysia fewer than 182 days in the year), it is generally taxed at a flat 30% with no personal reliefs. Expenses such as loan interest, quit rent, assessment and maintenance can usually be deducted. I explain the non-resident side, with a worked example, in Renting out your JB property? Check the tax side first.
Risks to plan for
- Vacancy between tenants. Commuters often time moves around job changes. Budget for at least one or two empty months a year in your cash flow.
- Oversupply of serviced apartments. In February 2025 the Johor state government said the state had 102,438 serviced apartment units, of which 11,810 were unsold, with another 27,688 under construction and 24,592 awaiting planning approval. Every new completion near the checkpoint is a competitor for your tenant.
- Commute changes. The RTS Link, checkpoint upgrades or new bus routes can shift which areas are most convenient. A unit that wins today on drive time may lose ground to one near a station.
- Exchange rate. These tenants earn in Singapore dollars, so a weaker ringgit makes JB attractive; a stronger ringgit can soften demand.
- Wear and tear. Fully furnished units need refreshing. Keep an inventory with photos and a small budget for replacements.
Landlord checklist
- Time your own drive or walk to the checkpoint at 6am and 7am, and put the honest figure in the listing.
- Furnish fully, check every air-conditioner, and confirm fibre is available in the building.
- Confirm the parking bay and access cards with management before viewings.
- Check the tenant’s identity, employer and right to stay in Malaysia for the full term.
- Write deposits, notice period, repairs and renewal terms clearly into the agreement.
- Stamp the agreement on MyTax within 30 days and keep the certificate.
- Register with LHDN and declare the rent each year, keeping receipts for deductible expenses.
Questions about your situation?
Send me your building and unit size, and I will tell you how commuter tenants are likely to see it and what similar units have let for.
Sources: The Straits Times (via Yahoo News Singapore), “RTS Link now expected to open in Feb 2027 instead of Dec 2026”, October 2026; The Star, “JB-Singapore RTS Link to commence operations in February 2027”, October 2026; The Star, “RTS Link fare, opening date to be announced jointly by Malaysia and Singapore, says Loke”, August 2026; The Star, “Easing Causeway commutes”, March 2024; Bernama, “JS-SEZ, RTS Link to boost Johor property market”, June 2025; Malay Mail, “Johor says property overhang falling as JS-SEZ boosts demand for service apartments”, February 2025; PropertyGuru, “Condominiums for rent in Johor Bahru (listing page)”, October 2026; LHDN, “Stamp Duty Self-Assessment System (STSDS)”, August 2026; PropertyGuru, “2026 Guide: Stamp duty, e-stamping and tenancy agreement fees in Malaysia”, January 2026; StashAway, “Stamp duty and administration fees for tenancy agreements in Malaysia (2026)”, August 2026; Rödl & Partner, “Stamp duty on tenancy agreements increased effective January 1, 2025”, May 2025; EdgeProp, “LHDN stamping guide 2026: tenancy agreement, SPA online”, October 2026; Speedhome, “Security deposit in Malaysia”, June 2026; ASEAN Briefing (Dezan Shira & Associates), “Personal income tax in Malaysia”, 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 12 October 2026, not legal, tax or financial advice.