Subletting rules for tenants in Malaysia (2026): landlord consent, condo by-laws, short stays and risks

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026

This guide is for tenants in Johor Bahru and the rest of Malaysia who want to sublet a room or a whole unit, and for landlords who suspect a tenant already has. The short answer: no Malaysian law bans subletting outright, but most tenancy agreements forbid it without the landlord’s written consent, condo by-laws can restrict how units are used, and short stays face their own rules. Subletting without consent is usually a breach that lets the landlord end the tenancy, and the tenant stays liable for everything the subtenant does.

Is subletting allowed in Malaysia?

No statute forbids a private tenant from subletting. In practice, though, your tenancy agreement almost always does. A Malaysian Bar committee column on tenancy agreements notes that tenants are usually barred from subletting but may do so with the landlord’s consent. Malaysia still has no residential tenancy act: in August 2026 the housing ministry said the bill was being finalised (Bernama), so the agreement and general contract law decide.

People use “sublet” loosely, so it helps to separate the arrangements:

Arrangement	What it means	Usually needs
Subletting a room	The tenant lets one or more rooms to someone else and collects rent from them, while living there or not	The landlord’s written consent
Subletting the whole unit	The tenant moves out and lets the whole home to a subtenant	The landlord’s written consent; many landlords refuse
Assignment	The tenant transfers the tenancy itself to a new person, who takes over the agreement	The landlord’s consent, usually a new or amended agreement
Adding a flatmate or family member	Another person lives in the unit without a separate rent arrangement	Check the occupants clause; many agreements name who may live there
Short stays	Letting by the night or week to guests	The landlord’s consent, the building’s rules and any local rules

Public housing is stricter. Subletting a PPR unit breaks the tenant’s agreement with the government, and in February 2024 the National Housing Department said it would terminate the contracts of PPR tenants in Gua Musang who had sublet to foreigners (The Sun, citing Bernama).

Getting the landlord’s consent properly

If your agreement allows subletting with consent, ask before you advertise, not after you have found someone. A WhatsApp “ok” is better than nothing, but a short signed letter or addendum is much safer. It should cover:

• Who: the subtenant’s name and identity or passport details, and how many people will live there.
• What: which rooms, and whether shared areas, parking and access cards are included.
• How long: a term that ends on or before your own tenancy ends.
• Use: residential only, no short stays, no further subletting.
• Responsibility: that you remain liable for rent, damage and by-law compliance, which the landlord will expect anyway.
• Conditions: any the landlord sets, such as registering the subtenant with management or an inspection before move-in.

Whether a landlord must agree depends on the clause. Some say consent “shall not be unreasonably withheld”; many simply forbid subletting. Read your own wording, and if the landlord refuses, your options are to stay as you are, negotiate, or end the tenancy as the agreement allows.

Condo by-laws and building rules

In a condo, serviced residence or stratified gated scheme, the building’s rules apply on top of your agreement. Under sections 32 and 70 of the Strata Management Act 2013, additional by-laws bind tenants and occupiers as well as owners, and a breach can carry a fine of up to RM200 (Malay Mail, September 2026). See my guide to condo by-laws, access cards and visitors.

• Long-term letting cannot simply be banned. Section 70(5) says a management corporation’s additional by-laws cannot prohibit or restrict leasing or other dealings with a parcel.
• Short-term rentals can be. In October 2020 the Federal Court upheld a Kuala Lumpur building’s house rule banning short-term rentals and found it did not breach section 70(5). Commentators noted that joint management bodies can adopt similar rules (The Edge Malaysia, November 2020).
• Registration and access cards. Most JB buildings ask owners to register tenants and their cars. A subtenant without a registered card will struggle with lifts, car park and visitors, and the guards will ask questions.
• Occupancy limits and partitions. Some buildings limit occupants or cards per unit. Adding partitions to create more rooms is building work that needs management and council approval; see my guide to renting out rooms.

Short stays: a different set of rules

Putting a rented unit on a short-stay platform is the riskiest form of subletting. On 26 October 2026 the deputy housing minister told the Dewan Rakyat that national guidelines for short-term rental accommodation were being finalised, that only registered premises meeting local authority licensing requirements would be able to operate legally under the framework, that strata buildings remain subject to their JMB or MC by-laws, and that a proposed 180-night cap was still being assessed (The Star). Until the guidelines are adopted, the building’s rules and your agreement decide, and most tenancy agreements I see in JB forbid short stays outright. My guide to Airbnb and short-stay rules in Johor Bahru covers the details.

The risks, side by side

Who	Main risks
Tenant who sublets	Breach of the agreement, which can let the landlord end the tenancy and claim losses; liability for the full rent even if the subtenant stops paying; damage, by-law fines and utility bills run up by the subtenant; offences if a subtenant has no valid pass
Subtenant	No contract with the owner, so no direct rights against them; if the main tenancy ends, the subtenant will usually have to leave; deposits held by a tenant who may disappear
Landlord	Unknown occupants, faster wear, overcrowding, complaints from neighbours, fines passed to the owner, and possible police or immigration attention to the unit

The legal exposure that surprises tenants

• Immigration. Section 55E of the Immigration Act 1959/63 makes it an offence for an owner or occupier to let someone without a valid pass stay at the premises. A 2024 case shows fines of RM5,000 to RM30,000 per person, prison of up to a year, or both (Daily Express, April 2024). As the tenant, you are the occupier.
• Crime at the unit. In March 2025 the police warned that property owners and management bodies who are complicit or negligent in letting premises be used for crime could face action (FMT). A tenant who hands a unit to strangers without checks is in a weak position.
• Deposit. If the landlord ends the tenancy for an unauthorised sublet and the agreement forfeits the deposit, section 75 of the Contracts Act 1950 limits the landlord to reasonable compensation up to that sum, but a court decides what is reasonable.
• Tax. Rent you collect from a subtenant is income. The Income Tax Act 1967 taxes rent under section 4(d) unless it is a business; your costs, including the rent you pay, may be deductible. Ask LHDN or a tax adviser.

If you are renting from a tenant

Many room rentals in JB are offered by a “master tenant” rather than the owner. That can work, but check:

• The main tenancy agreement, its end date and the clause on subletting.
• The owner’s written consent, and ideally a way to contact the owner.
• Proof of who owns the unit, such as a recent assessment bill, and that the name matches.
• A written sub-tenancy agreement with deposit and refund terms, stamped within 30 days.
• Payment by traceable transfer against a receipt. The Star reported in May 2026 on rental scams in which people posing as agents collected deposits; the same habits protect you here.

If you are the landlord and suspect a sublet

1. Gather facts. Ask management who is registered and which cards are in use; look for online listings with your unit’s photos.
2. Write to the tenant. Cite the subletting clause and ask them to remedy the breach within the period the agreement sets.
3. Decide: regularise it with a written consent and conditions, or end the tenancy as the agreement allows.
4. Use the courts if needed. Under section 7 of the Specific Relief Act 1950 you can recover possession from occupiers who stay on only through court proceedings. Do not change locks, remove belongings or cut utilities.

For the next tenancy, a clear no-subletting clause, named occupants and a proper check at the start help most; see my tenant screening and inventory checklist and landlord tenancy agreement guide.

Doing it properly: stamp duty and paperwork

LHDN’s stamp duty guideline of 30 June 2026 lists a sub-tenancy agreement (perjanjian sub-sewa) as a lease instrument under Item 49. The usual rates apply: RM1 per RM250 of annual rent for a term of up to one year and RM3 for one to three years. A room sublet at RM800 a month for a year is RM9,600 a year, so the duty is RM39. Stamp within 30 days of signing through e-Duti Setem.

Where to rent if you need your own place

• Skudai, Tampoi and Kempas: room and whole-unit rentals near universities and industry.
• Mount Austin: condos and landed homes popular with young professionals and families.
• JB Sentral and Bukit Chagar: compact units near the CIQ and the RTS Link station.
• Tebrau, Setia Indah and Molek: established areas with malls nearby.
• Bukit Indah and Gelang Patah: west-side homes near the Second Link.

Compare them on my JB property map.

More Johor living guides: Renting out rooms in JB · Airbnb and short-stay rules · Rent increases and tenancy renewal · Renting to foreign tenants

Frequently asked questions

Is subletting illegal in Malaysia?

No law bans it outright for private rentals, but most tenancy agreements forbid subletting without the landlord’s written consent. Subletting public housing such as PPR units breaks the tenant’s agreement and can lead to the contract being terminated.

Can my landlord end the tenancy if I sublet without permission?

Usually yes. Subletting without consent is normally a breach of the agreement, and after any notice the agreement requires the landlord can end the tenancy and claim losses. The landlord must still use the courts, not a lockout, if you will not leave.

Can a condo management ban subletting or Airbnb?

A management corporation’s by-laws cannot prohibit or restrict leasing a parcel under section 70(5) of the Strata Management Act 2013. Short-term rentals are different: in October 2020 the Federal Court upheld a building’s house rule banning them.

Who is responsible if my subtenant damages the unit or stops paying?

You are. Your contract is with the landlord, so you remain liable for the full rent, damage, by-law fines and bills. Your claim is against the subtenant under your own sub-tenancy agreement.

Do I need to stamp a sub-tenancy agreement?

Yes. LHDN’s June 2026 guideline lists sub-tenancy agreements as lease instruments under Item 49. For a term of up to one year the duty is RM1 per RM250 of annual rent, so a room at RM800 a month for a year costs RM39.

Can I sublet my room to a foreigner?

Only with the landlord’s consent and only if the person holds a valid pass. Letting someone without a valid pass stay is an offence under section 55E of the Immigration Act 1959/63, with fines of RM5,000 to RM30,000 per person.

Need help with a sublet or a room rental?

Tenants: tell me the building and what you want to sublet, and I will help you check the agreement and building rules before you ask the owner. Landlords: if you suspect a sublet or want to let rooms properly, I can help you set it up. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: Malaysian Bar Conveyancing Practice Committee column, “Tenancy agreement”, accessed November 2026; Bernama, “Residential Tenancy Bill being finalised to balance rights of tenants and landlords”, 4 August 2026; The Sun (Bernama), “NHD to terminate PPR contract for houses rented to foreigners”, 24 February 2024; Strata Management Act 2013 (Act 757), sections 32 and 70 (copy published by DBKL), checked November 2026; Malay Mail, on strata by-laws under the Strata Management Act 2013, 29 September 2026; The Edge Malaysia, “Getting around apex court ruling on short-term stays”, November 2020; The Star, “Guidelines to regulate short-term rental accommodation being finalised”, 26 October 2026; Daily Express, Immigration Act section 55E case, 26 April 2024; FMT, “Pitfalls for landlords when tenants commit crimes”, 24 March 2025; Attorney General’s Chambers, Laws of Malaysia: Contracts Act 1950 (section 75), Specific Relief Act 1950 (section 7), Income Tax Act 1967 (section 4) and Immigration Act 1959/63 (section 55E), checked November 2026; CTIM, summary of LHDN Public Ruling 12/2018, Income from Letting of Real Property, December 2019; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949 (Item 49), 30 June 2026; The Star, “Rental scams running rampant”, 24 May 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal or tax advice. Your tenancy agreement, your building’s by-laws and the law decide what is allowed; ask a Malaysian lawyer before you sublet or act against a tenant, and check short-stay rules with your local council.