How landlords in Malaysia collect rent (2026): DuitNow, standing instructions, late payment, deposits and records

中文 · Bahasa Melayu · Bahasa Indonesia

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

This guide is for owners letting a home in Johor Bahru or elsewhere in Malaysia, including landlords living in Singapore, Indonesia, India or China. The short answer: have the tenant pay by bank transfer (DuitNow or a standing instruction) into an account in your own name, on a due date fixed in the tenancy agreement, and keep a simple rent ledger. Bank records help you prove arrears and give you the records LHDN expects you to keep for seven years.

The main ways to collect rent in Malaysia

No law tells a landlord how rent must be paid. Malaysia still had no residential tenancy act in force in November 2026: on 4 August 2026 the deputy housing minister said the Residential Tenancy Bill was still being finalised (Bernama), and I found no report of it being tabled since. So the method is whatever you and the tenant agree in writing. The usual options:

Method	How it works	Good for	Watch out for
DuitNow transfer	Tenant pays instantly from online banking or an e-wallet	Most tenants	Tenant must remember each month
Standing instruction or scheduled recurring transfer	Tenant’s bank sends a fixed amount on a set date	Long, stable tenancies	Features vary by bank; update it when the rent changes
DuitNow AutoDebit or direct debit	A biller collects after the payer consents once	Registered businesses, such as management firms	Individuals cannot collect this way
Cheque	Often post-dated cheques for the year	A few company tenants	Slow to clear and can be returned unpaid
Cash	Paid in person	Rarely the best choice	Weak records; give a numbered receipt and bank it the same day

DuitNow transfers and QR

DuitNow is Malaysia’s national instant-transfer service, run by PayNet, the national payments network. PayNet’s help pages say payers can send money 24/7 through internet banking and participating e-wallets using a DuitNow ID: a mobile number, MyKad or passport number, an army or police number, or an SSM business registration number. Rent arrives at once, and the tenant can ask you to confirm your account name before the first payment. Many banking apps can also show a personal DuitNow QR code for the tenant to scan. Transfer fees are set by each bank, so check your bank’s fee page.

Standing instructions and recurring transfers

The tenant, not you, tells their bank to send a fixed sum on a fixed date, ideally a day or two before the due date. It suits tenants who travel, such as Singapore commuters. Ask for a screenshot once it is set up, and a fresh one after any rent change at renewal (see rent increases and tenancy renewals).

Put the payment terms in the tenancy agreement

Many rent disputes start with something vague: “rent payable monthly”, no account, no reference. My landlord guide to tenancy agreements covers the whole document; for rent, make sure it states:

• Amount, due date and account. For example, on or before the 1st of each month, into an account in the registered owner’s name.
• A payment reference. Unit number plus month, such as “B-12-03 DEC26”, so each payment matches your ledger.
• When rent counts as paid. When the full amount reaches your account.
• Charges. The tenant bears transfer and currency-exchange charges, so you receive the full ringgit rent.
• Changing the account. Only by written notice signed by the owner. This protects both sides against scammers (more below).
• Late payment. A grace period, a moderate late charge and the point at which non-payment becomes a breach.
• Notices. An email and postal address for each side.

Stamp the agreement within 30 days of signing. LHDN’s guideline of 30 June 2026 charges RM1 per RM250 of annual rent for a term of up to one year, so RM2,000 a month for a year costs RM96; my tenancy stamp duty guide has the other rates. An unstamped agreement cannot be used as evidence until stamped with any penalty (Stamp Act 1949, section 52).

Late rent: charges, reminders and limits

Many agreements add interest at a stated rate per year on overdue rent, or a fixed late charge. Section 75 of the Contracts Act 1950 limits what a court will award: where a contract names a sum for breach, the innocent party gets reasonable compensation not exceeding that sum. A charge out of proportion to your actual loss may not be enforced in full, so keep it moderate. A calm routine works better than a sudden legal letter:

When	What to do
Due date	Check your account; rule out a slow transfer.
A few days late	A friendly written reminder with the amount and month.
After the grace period	A dated reminder quoting the late-payment clause; agree any payment plan in writing.
Still unpaid	A formal notice of demand, usually through a lawyer, with a deadline.
After the deadline	Legal routes: small claims up to RM5,000 in the Magistrates’ Court, a civil claim, a warrant of distress (Distress Act 1951), or ending the tenancy and seeking possession through the court.

Do not change the locks, cut the utilities or keep the tenant’s belongings: under section 7 of the Specific Relief Act 1950, an occupier who stays on after a tenancy ends can only be removed through the court. My guide on what to do when a tenant stops paying explains each legal route.

Keep deposits separate from rent

No law fixes deposit amounts in Malaysia. The common pattern in JB is two months’ rent as a security deposit, half a month as a utility deposit and one month’s rent in advance (Malay Mail described this as usual practice in July 2026). Three habits help:

• Record deposits on their own lines in your ledger, not as rent; they are money you may have to return.
• Say the deposit is not rent. A clause that it cannot pay the last months’ rent stops a tenant from simply not paying at the end.
• Use it only as the agreement allows, with a top-up duty if you apply it to arrears mid-tenancy.

At move-out, return the balance with an itemised statement of every deduction. See my guides to rental deposit refunds and tenant screening and the inventory list.

Receipts and records for LHDN

I found no rule requiring a paper receipt for rent paid by bank transfer, since the bank record shows the payment. Company tenants and staff claiming housing allowances often ask for one, so a monthly receipt or yearly rent statement is good practice. Your own records matter more: rent from Malaysian property is taxable, and LHDN asks individuals to keep records for seven years.

Keep	Why
A rent ledger: month, amount due, date received, reference	Shows the rent you declare and proves any arrears
Bank statements showing rent received	Independent evidence of each payment
Deposit records and the signed inventory	Support deductions at move-out
Invoices for rent collection or legal fees to recover rent	Deductible against non-business rental income (Public Ruling 12/2018, paragraph 8.2(d))
Any self-billed e-invoices from a company tenant	Issued by some company tenants for the rent

Timing: paragraph 9.1 of the ruling treats rent received in advance as income when received, so six months paid up front in December belongs in that year. Individual landlords letting a home normally do not issue e-invoices; my e-invoice guide for landlords explains when a company tenant issues a self-billed one. How the rent is taxed is covered in my guides for resident landlords and non-resident landlords, who LHDN taxes at a flat 30% with no personal reliefs.

Joint owners. Collect into a joint account, or agree in writing how rent is split, so each owner can declare their own share. See joint names and tenancy in common.

Collecting rent when you or your tenant are abroad

Tenants paying from Singapore

Many JB tenants earn in Singapore dollars. Since 17 November 2023, the DuitNow–PayNow link launched by Bank Negara Malaysia and the Monetary Authority of Singapore lets users at participating banks send money across the border in real time by mobile number; the launch limit was RM3,000 or S$1,000 a day (Malay Mail, 17 November 2023). Limits change, so the tenant should check with their bank. Either way, the rent is the ringgit amount that reaches your account.

Landlords living overseas

• Keep a Malaysian account in your name. Under Bank Negara’s Foreign Exchange Policy Notices (in force 1 October 2025), a non-resident may hold a ringgit External Account and repatriate funds, including rent, in foreign currency. See opening a bank account as a foreigner.
• If someone collects for you, put it in writing. Act 242 (the Valuers, Appraisers, Estate Agents and Property Managers Act 1981) lists tenancy administration, including rental collection, within estate agency practice (section 22B(1A)(e)). If you pay someone to collect, check their registration with the Board (LPPEH) and agree when rent is passed on. See how to check an agent’s registration.
• Family helping out. Rent should still go into your account. For signing documents while away, see my power of attorney guide.

More on inspections, repairs and bills from a distance is in my guide to managing a JB property from overseas. Singapore residents should also read Singapore tax on JB rental income.

Avoiding payment scams

A common trick is a message, apparently from the landlord or agent, saying the bank account has changed. Simple rules help:

• Use one account in the owner’s name for the whole tenancy, and tell the tenant at signing that any change will come as a signed letter confirmed by phone.
• Never ask a tenant to pay a third party’s personal account.
• If money goes to the wrong account, call the National Scam Response Centre on 997, contact the bank straight away and make a police report.

My guide to property scams in Johor Bahru covers other warning signs.

Where to buy if this matters to you

Rent collection is easiest with steady tenant demand. These area guides show each part of JB:

• JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station, popular with Singapore commuters.
• Mount Austin: an established family and rental area.
• Iskandar Puteri: Medini, EduCity and the Second Link.
• Tebrau, Setia Indah and Molek: family neighbourhoods near the malls.
• Skudai, Tampoi and Kempas: near universities and industrial areas.

Compare them on my JB property map.

More Johor living guides: Landlord tenancy agreements in JB · When a tenant stops paying · Rental deposit refunds · Who pays for repairs · The Residential Tenancy Act in 2026

Frequently asked questions

What is the best way to collect rent in Malaysia?

For most landlords, a bank transfer such as DuitNow, or a standing instruction set up by the tenant, into an account in the owner’s name. It is instant or scheduled, leaves a record for both sides and avoids handling cash. Put the account, due date and payment reference in the tenancy agreement.

Can I charge interest on late rent in Malaysia?

You can include a late-payment term in the tenancy agreement, but under section 75 of the Contracts Act 1950 a court allows only reasonable compensation up to the amount stated. Keep the charge moderate, set a grace period and send written reminders before taking further steps.

Can a tenant use the deposit as the last month’s rent?

Not if the tenancy agreement says the security deposit cannot be used to pay rent. Put that clause in every agreement, keep deposits recorded separately from rent, and settle the deposit only after the move-out inspection.

Do landlords need to issue receipts for rent?

For rent paid by bank transfer, the bank record shows the payment, but many tenants ask for a receipt or yearly statement and it is good practice to give one. Always issue a receipt for cash. Keep your rent records for seven years for LHDN.

How can a tenant in Singapore pay rent to a Malaysian account?

Through an ordinary cross-border transfer or, at participating banks, the DuitNow–PayNow link launched on 17 November 2023, which had a limit of RM3,000 or S$1,000 a day at launch. The agreement should say the rent is the ringgit amount received, with charges on the tenant.

Can someone collect rent for me while I live abroad?

Yes, but give a written authority and, if you pay them to do it, check they are registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH). Ideally the tenant still pays into your own account.

Letting out a home in JB?

Tell me the project, the unit type and where you live. I can help you find and screen tenants, set out the rent and deposit terms, and prepare the inventory with photos. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: PayNet knowledge base, What is DuitNow Transfer?, accessed November 2026; PayNet knowledge base, DuitNow AutoDebit FAQs, accessed November 2026; Malay Mail, “Real-time payment system between Malaysia and Singapore launched”, 17 November 2023; Bernama, “Residential Tenancy Bill being finalised to balance rights of tenants and landlords”, 4 August 2026; Attorney General’s Chambers, Laws of Malaysia: Contracts Act 1950 (section 75), Specific Relief Act 1950 (section 7), Distress Act 1951 and Stamp Act 1949 (section 52), checked November 2026; Malay Mail, on the small claims procedure (Order 93, Rules of Court 2012), 28 February 2025; Malay Mail, on rental deposits and tenancy checks, July 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026; LHDN, Public Ruling No. 12/2018, Income from Letting of Real Property (paragraphs 8.2(d) and 9.1), 19 December 2018; LHDN, Navigasi HASiL 2026 (record keeping), 2026; LHDN, e-Invoice Guideline version 4.8, 30 August 2026; LHDN, who is taxable (non-residents 30%, no reliefs), checked November 2026; Bank Negara Malaysia, Consolidated Foreign Exchange Policy Notices, in force 1 October 2025; Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), section 22B(1A)(e), copy published by the Malaysian Institute of Estate Agents, as at 1 March 2018; LPPEH, role of registered valuers, appraisers, estate agents and property managers, accessed November 2026; MyGOV, NSRC 997 hotline, updated 21 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. Payment services, bank fees and limits, tax rules and the status of the Residential Tenancy Bill change; confirm with your bank, LHDN or a lawyer before you rely on them.