First-Time Landlord Checklist for Johor Bahru (2026): 7 Steps from Listing to Tax

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By Jason Lim, REN 84424 · IQI Realty · Checked on 15 November 2026

This checklist is for owners letting a Johor Bahru home for the first time, whether you live in JB or abroad. The short answer: check that your loan, insurance and building rules allow letting, set the rent by comparing similar units, screen tenants carefully, sign a clear agreement and stamp it within 30 days, record the unit’s condition, and declare the rent to LHDN every year. Malaysia still has no residential tenancy act, so your written agreement does most of the work.

The checklist at a glance

Stage	What to do	Go deeper
1. Ready to let	Check the loan, insurance, building by-laws and short-stay rules; fix defects	Home insurance
2. Set the rent	Compare like-for-like units; decide on furnishing	Furnished or unfurnished
3. Find and screen	Identity, valid pass, income, references; data handled under the PDPA	Tenant screening checklist
4. Agreement and stamping	Written agreement; stamp within 30 days on MyTax	Tenancy agreement guide
5. Deposits and handover	Collect deposits against receipts; signed inventory with photos	Deposit refunds
6. During the tenancy	Rent records, repairs, utilities, renewal	Who pays repairs
7. Tax and records	Declare net rent each year; keep records seven years	Rental tax for residents

Step 1: Make sure you can let, and that the unit is ready

Paperwork owners often forget

• Your home loan. Read your letter of offer and facility agreement for any clause about letting or notifying the bank. Terms differ, so ask your lender if unsure.
• Insurance. Management insures a condo building, but contents, renovations and liability are yours. Tell your insurer the home will be let; see my home insurance guide.
• Building by-laws. Ask management for the house rules on tenant registration, access cards, moving and pets. See condo by-laws and access cards and move-in and move-out rules.
• Short stays are a different business. On 26 October 2026 the deputy housing minister said national short-term rental guidelines were still in draft, before going to the Cabinet (Bernama), and many by-laws restrict short stays. See short-stay rental rules in Johor Bahru.
• Bills up to date. Settle maintenance charges, quit rent and assessment before you list. See unpaid maintenance fees and quit rent and assessment tax.

Getting the unit ready

Fix leaks, faulty wiring and locks before anyone views. In a new home, report defects to the developer within the defect liability period (see my defect checklist). Service the air-conditioners and clear standing water where mosquitoes could breed (see dengue prevention). Then decide how much to furnish: families staying longer often prefer partly furnished homes, Singapore commuters often want fully furnished ones. My furnished vs unfurnished guide and renovation and furnishing costs help you weigh it up.

Step 2: Set a realistic rent

There is no official rent index for Johor Bahru; NAPIC publishes recorded sale prices, not agreed rents. A sensible method:

1. Compare like with like. Same or nearby building, size, layout, floor and furnishing.
2. Treat asking rents as a ceiling. Units that sit unlet for months are usually priced above what tenants will pay.
3. Look at your tenant pool. Units near the CIQ draw Singapore commuters; near universities, students (see student housing in JB); near schools, families.
4. Count the cost of an empty month. A slightly lower rent that lets sooner can leave you better off.

When I help owners let a unit, I compare current listings in the same development with rents tenants are actually agreeing to. For sale-price data, see how to read NAPIC data.

Step 3: Find and screen a tenant

Screening answers three questions: who is this, can they legally stay for the term, and can they afford the rent?

• Identity. MyKad for Malaysians; passport for foreigners. View the original.
• Right to stay. For foreign tenants, a current pass and its expiry date. 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; a 2024 court report cited fines of RM5,000 to RM30,000 per person, jail of up to a year, or both (Daily Express, April 2024). See renting to foreign tenants.
• Income. An employment letter, recent payslips or bank statements. For a company let, the company’s registration documents (see company tenancies).
• References. A previous landlord’s contact and the names of all occupants.
• Personal data. Under the Personal Data Protection Act 2010, collect only what you need, keep it secure and delete it when no longer needed (PDP Commissioner, 2026). See PDPA for landlords.
• Fair criteria. Judge every applicant on the same objective points, never race or religion.

If you use an agent, check their registration with the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH); see checking an agent’s REN and property scams in JB.

Step 4: Sign a clear agreement and stamp it

With no tenancy act yet (see where the bill stands), there is no tenancy tribunal or standard form. A good agreement covers at least:

• Rent, due date, payment method and late-payment terms.
• Deposits, what can be deducted and the refund deadline.
• Who pays utilities, minor repairs and aircon servicing; maintenance fees, quit rent and assessment are normally the owner’s.
• Permitted occupants, pets, subletting and short stays (see subletting rules).
• Renewal option and rent review, early termination and notice periods (see ending a tenancy early and rent increases and renewal).
• The inventory as a signed schedule.

Then stamp it under Item 49 of the Stamp Act 1949’s First Schedule, per RM250 (or part) of annual rent:

Tenancy length	Duty per RM250 of annual rent	Example: RM2,000 a month
Up to 1 year	RM1	RM96
More than 1 year, up to 3 years	RM3	RM288
More than 3 years, up to 5 years	RM5	RM480
More than 5 years	RM7	RM672

• Deadline: 30 days from signing. Late stamping costs the higher of RM50 or 10% of the duty within three months, then the higher of RM100 or 20% (LHDN, May 2026).
• Who is liable: the tenant for the original, the landlord for the copy (Third Schedule); the agreement can share the cost.
• How: self-assessment through e-Duti Setem on LHDN’s MyTax portal since 1 January 2026. LHDN said it would not penalise errors in returns submitted during 2026 (Malay Mail, December 2025).
• No low-rent exemption: the old exemption for annual rent up to RM2,400 ended for agreements from 1 January 2025 (The Sun).

A stamped agreement can be used as evidence in court. See my tenancy stamp duty guide.

Step 5: Deposits, inventory and handover

No law fixes rental deposits in Malaysia. The common JB pattern, which Malay Mail also described in July 2026, is:

Item	Usual amount	Example at RM2,000 a month
Security deposit	2 months’ rent	RM4,000
Utility deposit	Half a month’s rent	RM1,000
Advance rent	1 month’s rent	RM2,000

Issue a receipt for every payment. At handover, walk through with the tenant and record room by room: furniture and appliances with their condition, meter readings, keys and access cards, and dated photos. Both sign, and the inventory is attached to the agreement. It settles deposit arguments later; see rental deposit refunds.

Decide whose name the TNB and Ranhill SAJ accounts will be in; if yours, agree how bills reach the tenant (see electricity and water bills and utilities on moving in). Register the tenant with management.

Step 6: During the tenancy

• Collect rent traceably. Bank transfers give you a record for LHDN; see rent collection methods.
• Repairs. Owners usually handle structural problems and worn-out fittings; tenants usually handle small fixes up to an agreed amount. See who pays for repairs.
• Late rent. Remind early, then send a written notice. Never change locks, cut utilities or remove belongings: recovering possession needs a court order under section 7 of the Specific Relief Act 1950. Small claims of up to RM5,000 can go through the Magistrates’ Court procedure (Malay Mail, February 2025). See tenant not paying rent.
• Renewal. Discuss it two or three months before expiry, put any new rent in writing, and stamp the renewal.

Step 7: Tax, e-invoices and records

Rent from a Malaysian property is Malaysian income. LHDN’s Public Ruling No. 12/2018 sets out how it is taxed.

Topic	What applies	Source
Resident landlords	Net rent is added to your other income and taxed at scale rates of 0% to 30% (YA2025); Form BE due 30 April, e-Filing to 15 May	LHDN, Navigasi HASiL 2026; filing programme 2026
Non-resident landlords	Flat 30% on net rent, no personal reliefs; file Form M	LHDN, who is taxable
Deductible	Assessment, quit rent, loan interest, fire insurance, rent collection costs, costs of renewing a tenancy or changing tenants, ordinary repairs	Public Ruling 12/2018
Not deductible	Costs of getting your first tenant, such as advertising, legal fees, stamp duty and agent’s commission; improvements	Public Ruling 12/2018
E-invoice	Individuals not conducting a business are exempt; businesses below RM3 million annual revenue exempt from 1 September 2026; a business tenant may issue you a self-billed e-invoice	LHDN e-Invoice Guideline v4.8 and media statement, 30 August 2026; LHDN FAQ, September 2026
Records	Keep the agreement, stamping proof, rent records and receipts for seven years	LHDN; Income Tax Act 1967

The first-tenant rule surprises many new landlords: costs of your very first tenancy are not deductible, while later renewal or replacement costs generally are. Read more for resident landlords, non-resident landlords and e-invoicing for landlords. Singapore residents should also read Singapore tax on JB rental income.

If you live outside Malaysia

Owners in Singapore, Jakarta, Mumbai or Shanghai should plan for distance:

• A local contact for emergencies, repairs and viewings, with written authority; see managing JB property from overseas. A power of attorney suits some owners.
• A Malaysian bank account makes rent, maintenance fees and instalments simpler; see opening a bank account as a foreigner.
• Your tax residence depends on days spent in Malaysia, not your passport; see the 182-day rule.

Where to buy if you plan to let

Buying with letting in mind? Think about who will rent the unit and why:

• JB Sentral and Bukit Chagar: walking distance to the CIQ; the RTS Link to Singapore is targeted to start in February 2027 (see homes near the RTS Link station).
• Mount Austin: families, cafes and schools north-east of the city centre.
• Tebrau, Setia Indah and Molek: established neighbourhoods near malls and offices.
• Skudai, Tampoi and Kempas: close to universities and industrial areas.
• Iskandar Puteri: Medini, EduCity and the Second Link to Tuas.
• Permas Jaya and Senibong: east-side condos and waterfront homes.

Compare them on my JB property map or read studio vs one-bedroom condos.

More Johor living guides: Tenancy agreements for JB landlords · Tenant screening and inventory · Residential Tenancy Act status · Renting out rooms in JB · Vacant home checklist

Frequently asked questions

What should a first-time landlord in Johor Bahru do first?

Check your loan terms, insurance and building by-laws, clear any arrears and fix defects. Then set the rent by comparing similar units nearby.

Is there a Residential Tenancy Act in Malaysia in 2026?

Not yet. On 4 August 2026 the housing ministry said the Residential Tenancy Bill was still being finalised, and I found no record of it being tabled by mid-November 2026. Your agreement and existing laws apply.

How much deposit can a landlord take in JB?

No law sets a limit. The common pattern is two months’ rent as a security deposit, one month’s advance rent and half a month’s utility deposit. Put the deductions and refund deadline in the agreement.

Who pays stamp duty on a tenancy agreement?

The tenant is liable for the original and the landlord for the copy, though the agreement can share the cost. Stamp within 30 days on MyTax: RM1 per RM250 of annual rent for a term of up to one year.

Do I pay income tax on rent from my JB property?

Yes. Net rent after allowable expenses is taxable. Malaysian tax residents add it to their other income at scale rates of 0% to 30%; non-residents pay a flat 30% with no personal reliefs. Costs of getting your first tenant are not deductible.

Do individual landlords need to issue e-invoices?

Usually not. LHDN exempts individuals who are not conducting a business, and letting a home without active, comprehensive services is normally not a business. A business tenant may issue you a self-billed e-invoice instead.

Can I evict a tenant who stops paying rent?

Not by yourself. Recovering possession needs a court order under the Specific Relief Act 1950. Send written reminders and a notice, then speak to a lawyer.

Letting your JB home for the first time?

Send me the project, unit type, furnishing and the date it is available. I will tell you what similar units are asking, who usually rents in that area, and how I can help find and screen a tenant and prepare the inventory. You can also book an appointment, or a Zoom consultation if you live abroad.

Sources: Bernama, “Residential Tenancy Bill being finalised to balance rights of tenants and landlords”, 4 August 2026; Bernama, “KPKT moves to standardise short-term rental accommodation rules nationwide”, 26 October 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949 (Item 49), 30 June 2026; LHDN, Garis Panduan Pengenalan Duti Setem di bawah Akta Setem 1949 (liability under the Third Schedule), 6 November 2025; LHDN, Penalti Duti Setem, updated 13 May 2026; LHDN, Sistem Taksir Sendiri Duti Setem (STSDS), updated 28 August 2026; Malay Mail, “No penalties in first year of self-assessment stamp duty system, says LHDN”, 21 December 2025; The Sun, “Tax matters: significant changes to stamp duty from 2025” (part two), accessed November 2026; Malay Mail, on rental deposits for first-time renters, July 2026; Malay Mail, on the small claims procedure (Order 93, Rules of Court 2012), 28 February 2025; Daily Express, Immigration Act section 55E case, 26 April 2024; PDP Commissioner, Personal Data Protection Act 2010 (Act 709) reprint as at 15 September 2026; Attorney General’s Chambers, Laws of Malaysia: Specific Relief Act 1950 (section 7), Immigration Act 1959/63 (section 55E), Stamp Act 1949, Contracts Act 1950 and Income Tax Act 1967 (sections 7 and 82), checked November 2026; LHDN, Public Ruling No. 12/2018, Income from Letting of Real Property, 19 December 2018; LHDN, Navigasi HASiL 2026 (YA2025 resident rates, record keeping), 2026; LHDN, Program Memfail Borang Nyata bagi Tahun 2026, updated 1 April 2026; LHDN, who is taxable (non-residents 30%, no reliefs), checked November 2026; LHDN, e-Invoice Guideline version 4.8, 30 August 2026; LHDN media statement, e-Invoice exemption threshold raised to RM3 million, 30 August 2026; LHDN, e-Invoice FAQs (self-billed e-invoices for rent), updated 4 September 2026; The Star, “JB-Singapore RTS Link to commence operations in February 2027”, 2 October 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 15 November 2026, not legal, tax or financial advice. Laws, rates and practices change; confirm with LHDN, your bank, your insurer, the building’s management and a lawyer before you let.