Renting out rooms in Johor Bahru (2026): agreements, permits, safety, tenants and tax

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 9 November 2026

This guide is for owners letting a Johor Bahru house or condo room by room, including owners in Singapore, Indonesia, India or China. The short answer: letting rooms is legal and common in JB, but each room should have its own stamped agreement, new partitions need council approval (and in a condo, the management’s too), and every occupant must hold a valid pass. With no Residential Tenancy Act in force in November 2026, your agreement and house rules do most of the work.

Is renting out rooms allowed in Johor Bahru?

Yes. Letting rooms in a home you own is an ordinary arrangement in Malaysia, and I found no Johor rule, as of November 2026, that bans it or requires a separate state licence for it. The rules that matter come from other laws:

• Your agreement. Each room let is a contract under the Contracts Act 1950. On 4 August 2026 the deputy housing minister said the Residential Tenancy Bill (Rang Undang-Undang Sewaan Kediaman) was still being finalised (Bernama).
• Building rules. Partitions and extra bathrooms fall under the Street, Drainage and Building Act 1974 and the Uniform Building By-Laws 1984, enforced by the council.
• Strata by-laws. In a condo or gated strata scheme, the Strata Management Act 2013 and the building’s by-laws apply.
• Immigration law. Section 55E of the Immigration Act 1959/63.
• Workers’ housing law. Act 446, if an employer rents your home for its staff.
• Tax. Stamp duty on each agreement, and income tax on the rent.

Nightly short stays follow different rules: in October 2026 the housing ministry said national short-term rental guidelines were being finalised (The Star). See my Airbnb and short-stay rules guide. This article covers monthly room lets and is general information, not legal or financial advice; for a tailored agreement or a dispute, use a Malaysian lawyer.

Room agreements: one per room, stamped

The cleanest set-up is one agreement per room, signed directly with each occupant. Letting the whole house to one person who then sublets the rooms means you lose control over who lives there; Bernama reported in August 2026 that tenants subletting units to others without the owner’s knowledge had left owners exposed to legal trouble.

Stamp duty on a room agreement

A room agreement is charged like any tenancy under Item 49 of the First Schedule to the Stamp Act 1949, per RM250 (or part) of annual rent. Stamp within 30 days of signing through LHDN’s e-Duti Setem on MyTax. 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).

Monthly room rent	Annual rent	Term up to 1 year (RM1 per RM250)	Term over 1 year, up to 3 years (RM3 per RM250)
RM500	RM6,000	RM24	RM72
RM700	RM8,400	RM34	RM102
RM900	RM10,800	RM44	RM132

LHDN’s guideline puts the duty on the original on the tenant and on the copy on the landlord. An unstamped agreement cannot be used as evidence until it is stamped with any penalty, so stamp before a problem starts. If your document is drafted as a “licence” rather than a tenancy, ask your lawyer how to stamp it.

Clauses that matter more when rooms are shared

Clause	What to write down
Room and shared areas	Which room is let, what furniture comes with it, and which areas (kitchen, living room, laundry, parking) are shared.
Occupants	Name and ID of the one person (or couple) allowed in the room. No subletting or extra occupants without written consent.
House rules	Quiet hours, guests and overnight visitors, smoking, cooking, pets, cleaning rota, rubbish. Attach them as a schedule.
Utilities and internet	Whether rent includes them, any monthly cap, and how extra usage is charged.
Deposits	Amounts, what can be deducted, refund timing, and that the deposit is not the last month’s rent.
Ending the let	Notice period, and what happens if house rules are broken repeatedly.
Inventory	A signed list with dated photos of the room and its furniture.

No law fixes deposit amounts; whatever you choose, write it down. My landlord guide to tenancy agreements covers deposits and repairs in more detail.

Condos: by-laws, management and access cards

In a strata building, the joint management body (JMB) or management corporation (MC) runs the common property under the Strata Management Act 2013, and its by-laws apply to owners, tenants and visitors alike. Before you advertise rooms in a condo:

• Read the by-laws. Some buildings limit occupants or access cards per unit. Additional by-laws can carry fines of up to RM200 per breach, as Malay Mail reported in September 2026, and the fine may reach you as the owner first.
• Ask before any partition. Management usually approves renovations, often against a deposit, on top of the council’s rules.
• Keep your charges paid. Management can deactivate access cards of a unit in arrears. See my maintenance fee and sinking fund guide.

See also my guides to checking a condo’s management and the Strata Management Tribunal.

Partitions and renovations: council permits and room sizes

Splitting a room or adding a bathroom is building work. Two rules in the Uniform Building By-Laws 1984 matter most:

Rule	What it says	What it means for a room let
Minimum room areas (by-law 42)	First habitable room at least 11 m², second at least 9.3 m², all other rooms at least 6.5 m².	A small room squeezed out of a larger one may fall below the minimum.
Light and ventilation (by-law 39)	Each room needs windows of at least 10% of its floor area, with openings for air of at least 5%.	A partitioned room with no outside window is unlikely to comply.

• MBJB. Its guideline for small alterations and additions to houses covers homes that already have a certificate of fitness or CCC. Permits are valid for one year, and breaking reinforced concrete walls needs plans certified by a registered engineer (MBJB building guideline, updated 2016).
• MBIP. In October 2021 MBIP reminded owners to get approval before renovating, warning that unapproved works could face a penalty of up to 30% of their cost (The Star).
• Other councils such as Kulai and Pasir Gudang have their own procedures. Ask the building department first.

Keep the approval letters for when you sell. My guides to CCC certificates, renovation and furnishing costs and hiring a designer or contractor cover the practical side.

Fire and safety basics

I found no Bomba (Fire and Rescue Department) rule written specifically for room lets in ordinary homes, so treat these as good practice, plus any conditions in your renovation approval:

• Smoke alarms in each bedroom and the hallway. Universiti Malaya’s public health department noted in March 2026 that many households do not install them.
• Clear escape routes. Do not block windows with partitions or wardrobes, and keep keys for window grilles and the main gate where every occupant can reach them.
• No cooking in bedrooms. Keep gas cylinders, rice cookers and hot plates in the kitchen, and put that in the house rules.
• Wiring. Extra air-conditioners add load; have a registered electrician check the circuits and avoid chained extension cords.
• A fire extinguisher in the kitchen, and 999 on the house rules sheet.

Utilities, internet and cleaning

Agree the bill split before anyone moves in. Three models are common:

Model	How it works	Watch out for
Utilities included up to a cap	One price per room; usage above the cap is shared.	Set the cap from past bills; show the bill when it is exceeded.
Per-room aircon sub-meter	Each room’s aircon usage is charged to that tenant.	Charge actual usage at the bill’s tariff and show your working.
Equal split	The bill is divided by the number of rooms.	Simple, but can cause arguments.

For a room let, the electricity and water accounts normally stay in the owner’s name. TNB’s landlord and tenant booklet (2016) says only one registered user can hold the account, and if that is the landlord, the landlord is responsible for any arrears. Pay the bills yourself and recover the shares. One fibre line is usually included in the rent, and shared areas need a cleaning rota or a paid cleaner. My moving-in and utilities guide covers accounts and providers.

Choosing tenants: passes, workers and screening

For each applicant, ask for:

• Identity. A MyKad copy for Malaysians, or a passport copy with a current pass for foreigners: a student pass, an employment or other work pass, or a long-term pass such as MM2H. 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, with a fine of RM5,000 to RM30,000, up to a year in jail, or both, for each person (Daily Express court report, April 2024).
• Ability to pay. An employment letter and payslips, or a university offer letter and sponsor details.
• A reference from a previous landlord, and confirmation they have read the house rules.

When a company wants the house for its workers

Under the Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446), an employer that houses workers must hold a certificate for accommodation from the Labour Department, and Malay Mail reported in December 2020 that operating without one can lead to a fine of up to RM50,000. Bernama reported in August 2026 that some owners partition units to fit more than ten people for employers. If a company approaches you, ask to see its certificate, cap the number of occupants in the agreement, and keep to the room-size and safety points above.

If a tenant stops paying, do not change the locks or cut the power; follow the steps in my guide to what to do when a tenant does not pay rent.

Who rents rooms in Johor Bahru

• Students. Around UTM and Southern University College in Skudai, and EduCity in Iskandar Puteri. In my student housing guide, private rooms near UTM were asking about RM350 to RM800 a month in November 2026.
• Young workers and Singapore commuters near the city centre and the RTS Link station.
• Industrial and data-centre staff around Kulai and Senai. See my Johor data centres guide.

Room rents depend on size, a private bathroom, parking and distance to campus or work, and change with intakes.

Tax and insurance

Rent from rooms is rental income. Malaysian residents add it to their other income at the usual scale rates, and LHDN taxes non-resident individuals at a flat 30% with no personal reliefs. LHDN’s Public Ruling No. 12/2018 on income from letting of real property lists expenses that can be deducted from non-business rental income, including:

• quit rent and assessment tax, loan interest and fire insurance premiums;
• repairs and maintenance, pest control and replacing furnishings;
• maintenance charges and sinking fund, and rent collection and tenancy renewal costs.

Costs before the first let, such as renovating to attract tenants, are not deductible. The ruling also says letting income can be business income when the owner comprehensively and actively provides maintenance or support services. Ask a tax adviser or LHDN which applies to you, and check your home country’s rules too. See my rental income tax guide. This is not tax advice.

For insurance, tell your insurer the home is let by the room, cover your furniture under a householder policy, and ask tenants to insure their own belongings (see my home insurance guide).

Running a room let from Singapore or abroad

Room lets need more attention than a single tenancy. If you live abroad:

• Have someone local for viewings, handovers and repairs. Check any agent or property manager on the LPPEH (Board of Valuers, Appraisers, Estate Agents and Property Managers) register.
• Collect rent traceably into an account in your name, never as cash to a third party.
• Put authority in writing. My power of attorney guide explains how one is signed abroad.
• Know the rules for foreign owners. Foreigners can generally buy Johor homes only from RM1 million, with some exceptions such as designated zones (New Straits Times, April 2026); the same letting rules apply.

My guide to managing a JB property from overseas covers the day-to-day.

Where to buy if this matters to you

Buying with room letting in mind? Look for several decent bedrooms with windows and more than one bathroom, in areas with steady demand:

• Skudai, Tampoi and Kempas: around UTM and Southern University College, with terraces and older condos.
• Iskandar Puteri and Medini: EduCity students and staff, and the Second Link.
• JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station.
• Kulai and Senai: industrial parks, the airport and data centres.
• Tebrau, Setia Indah and Molek and Mount Austin: established areas with malls and jobs nearby.

Landed homes often suit room letting best; see my landed homes guide and corner vs intermediate terraces, and compare areas on my JB property map.

More Johor living guides: Student housing in JB · Landlord tenancy agreements in JB · Renting in JB as a foreigner · Renting out property in Johor · Ending a tenancy early · Noisy neighbours

Frequently asked questions

Is it legal to rent out rooms in my house in Johor Bahru?

Yes. I found no Johor rule banning it as of November 2026. You still need written agreements, council approval for any partitions, condo management approval where relevant, and tenants with valid passes.

Do I need to stamp a room rental agreement?

Yes. Stamp it within 30 days through LHDN’s e-Duti Setem. Under LHDN’s June 2026 guideline the duty is RM1 per RM250 of annual rent for a term of up to one year, so a RM700-a-month room let for a year costs RM34.

Do I need council approval to partition a room?

Yes, building works such as partitions or extra bathrooms need approval from MBJB, MBIP or your local council. The Uniform Building By-Laws 1984 also set minimum room areas and window sizes.

Can I rent out rooms in my condo?

Usually, but the building’s by-laws apply to every occupant. Check limits on occupants or access cards, and get management approval before any partition work.

Can I rent rooms to foreign workers or students?

Yes, if each person holds a valid pass; letting someone without one stay is an offence under section 55E of the Immigration Act. An employer housing its staff needs a certificate for accommodation under Act 446.

Is income from renting out rooms taxable in Malaysia?

Yes. Malaysian residents pay tax on it at the usual scale rates, and non-residents at a flat 30%. Quit rent, assessment, loan interest and repairs can be deducted under LHDN Public Ruling No. 12/2018.

Want help letting your JB home by the room?

Tell me the area, the home type, how many rooms and when they will be ready. I can share asking rents for similar rooms nearby, market the rooms, check applicants’ documents and passes, and help with handover and the inventory. For the agreement and any dispute, use a Malaysian lawyer. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: Bernama, “Residential Tenancy Bill being finalised to balance rights of tenants and landlords”, 4 August 2026; The Star, short-term rental guidelines being finalised, 26 October 2026; Bernama, on substandard workers’ hostels in rented homes and Act 446, 27 August 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026; LHDN, stamp duty penalties and stamping deadlines, updated 13 May 2026; The Sun, “Tax matters: significant changes to stamp duty from 2025”, accessed November 2026; Malay Mail, on strata by-laws under the Strata Management Act 2013, 29 September 2026; Uniform Building By-Laws 1984, by-laws 39 and 42, text published by JKR, accessed November 2026; MBJB, guideline for small alterations and additions to houses (updated 2016), accessed November 2026; The Star, “MBIP: Seek approval before carrying out renovations”, 21 October 2021; Universiti Malaya, Department of Social and Preventive Medicine, on fire safety at home, 6 March 2026; Suruhanjaya Tenaga, TNB tariff table, valid July 2025 to December 2027, checked November 2026; TNB, landlord and tenant booklet, 2016, accessed November 2026; Daily Express, Immigration Act section 55E(1) case, 26 April 2024; Labour Department of Peninsular Malaysia (JTKSM), Employees’ Housing, Accommodations and Amenities (Act 446), accessed November 2026; Malay Mail, employers urged to comply with Act 446, 16 December 2020; LHDN, Public Rulings (No. 12/2018, Income from Letting of Real Property, 19 December 2018), accessed November 2026; LHDN, Who is taxable (non-resident individuals), accessed November 2026; LPPEH, public register of estate agents and negotiators, checked November 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 9 November 2026, not legal, tax or financial advice. Building rules, by-laws, stamp duty and tax rules change; confirm with your council, your building’s management, LHDN and a Malaysian lawyer before you let rooms.