Tenant not paying rent in Malaysia (2026): a Johor landlord’s step-by-step guide

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

This guide is for landlords in Johor Bahru, including owners living in Singapore, Indonesia, India, China or elsewhere, whose tenant has stopped paying rent. The short answer: start with a written reminder and a formal notice of demand, use the deposit only as your tenancy agreement allows, and if that fails, go to court for the arrears and, if needed, for possession. Malaysia still has no Residential Tenancy Act in force in November 2026, so you cannot change the locks or cut the utilities to force a tenant out; only a court can order that.

The legal position in November 2026

On 4 August 2026 the deputy housing minister told the Dewan Negara that the Residential Tenancy Bill (Rang Undang-Undang Sewaan Kediaman) was still being finalised, with a quicker, less costly way to settle rental disputes among its aims (Bernama). I found no report of it being tabled by early November 2026, so there is no tenancy tribunal yet. Until there is, unpaid rent is handled under existing laws:

• Contracts Act 1950 and your tenancy agreement. The rent, due date, late charges, deposit rules and termination clause you can enforce are the ones you wrote down.
• Specific Relief Act 1950, section 7. When a tenancy has ended and the occupier stays on, the owner cannot recover the property from them except through court proceedings.
• Distress Act 1951. Lets a landlord apply to court for a warrant of distress to seize and sell the tenant’s movable goods for rent arrears.
• Civil Law Act 1956, section 28(4). A tenant who holds over after the tenancy ends can be charged, at the landlord’s option, double the rent (or double the value) for the period they stay on.
• Stamp Act 1949, section 52. An unstamped agreement cannot be admitted in evidence until the duty and any penalty are paid.
• Limitation Act 1953, section 6. Claims founded on a contract generally must be brought within six years of the cause of action.

This is general information, not legal advice. Before you terminate a tenancy, keep a deposit or start a court case, speak to a Malaysian lawyer about your agreement and facts.

What to do when the rent stops: step by step

1. Check first. Confirm the payment really has not arrived and re-read the rent, late-charge and termination clauses.
2. Talk, then put it in writing. A friendly message, then a dated written reminder stating the amount due, the due date and how to pay.
3. Agree any payment plan in writing, with dates and amounts, stating that it does not waive your rights.
4. Send a formal notice of demand. Usually by a lawyer, by registered post and email, giving a deadline and saying you may terminate under the agreement if the arrears are not paid.
5. Decide: recover the money, the unit, or both. Small claims, a civil claim, a writ of distress or a possession action, as set out below.
6. Terminate properly, if you choose to. Follow the notice steps in your agreement exactly. A termination that skips a step can be challenged.
7. If the tenant leaves, inspect against the inventory, take dated photos and account for the deposit in writing.

Keep a paper trail from day one

You will need: the stamped tenancy agreement and its stamp certificate, the signed inventory, a rent ledger (dates due, amounts paid), bank statements, copies of every reminder and the notice of demand with proof of delivery, and screenshots of messages.

Using the security deposit

No law fixes rental deposits in Malaysia. The usual pattern, which Malay Mail described in July 2026 as standard practice, is two months’ rent as a security deposit, one month’s advance rent and half a month as a utility deposit: about RM7,000 upfront on RM2,000 a month.

Question	What usually decides it
Can I deduct unpaid rent from the security deposit?	Usually yes at the end of the tenancy, if the agreement lists unpaid rent as a deduction.
Can I use the deposit mid-tenancy?	Only if the agreement allows it, and many say the tenant must then top it up.
Can the tenant treat the deposit as the last months’ rent?	Not if the agreement says it cannot. Put that sentence in every agreement.
What about the utility deposit?	Kept for final electricity, water and sewerage bills; deduct only what the bills show.

When you return the balance, give an itemised statement of every deduction with receipts or quotes. More on deposits and clauses is in my landlord guide to tenancy agreements in Johor Bahru.

Your legal routes

Route	What it gets you	Where	Points to note
Small claims procedure	A judgment for money owed, up to RM5,000	Magistrates’ Court	Order 93, Rules of Court 2012. Individuals only; parties generally appear without lawyers; no appeal.
Civil claim for arrears and damages	A judgment for larger sums, interest and costs	Magistrates’, Sessions or High Court, by amount	Usually with a lawyer. Can be combined with a claim for possession.
Writ (warrant) of distress	Seizure and sale of the tenant’s goods at the premises	Court, on an ex parte application	Distress Act 1951: arrears of up to 12 completed months; some goods are exempt.
Action for possession	A court order to give the unit back, enforced by a writ of possession	Court	The only lawful way to remove a tenant who stays on (Specific Relief Act 1950, s.7).
Double rent for holding over	Extra compensation after the tenancy has ended	Claimed in the court action	Civil Law Act 1956, s.28(4), at the landlord’s option.

The Sessions Court hears civil claims above RM100,000 up to RM1 million, and landlord-and-tenant and distress matters with no monetary cap, according to the Council of ASEAN Chief Justices’ description of Malaysian courts. Fees and timelines vary with the case and whether the tenant defends, so ask your lawyer for an estimate first.

Small claims: up to RM5,000 without a lawyer

For a small amount, such as one or two months’ rent after the deposit, the small claims procedure (tuntutan kecil) is the simplest route. As Malay Mail explained in February 2025, the claim must not exceed RM5,000, a magistrate hears it, the parties represent themselves, and the decision is final. Unpaid judgments can be enforced, for example by seizure and sale. Check the current limit and filing steps with the Magistrates’ Court registry in Johor Bahru before you file, and note that a company landlord cannot use this route.

Writ of distress: seizing goods for rent

Under section 5 of the Distress Act 1951, a landlord, or an agent authorised in writing, can apply to a judge or registrar for a warrant of distress. It covers rent for up to twelve completed months immediately before the application, and can still be used after the tenancy ends if the tenant is in occupation or their goods remain. Section 8 exempts certain items, including necessary clothing and bedding. A bailiff, not the landlord, carries out the seizure. It is for rent, not utility bills, and in a furnished unit most goods may be yours, so it suits tenants with valuable belongings of their own.

Getting the unit back

If the tenant will neither pay nor leave, you first end the tenancy as the agreement allows, then sue for possession and the arrears together. Once the court grants possession, a writ of possession is executed by the court’s officers. Section 28(4) of the Civil Law Act 1956 also lets you claim double rent for the period the tenant holds over after the tenancy ends; ask your lawyer whether it fits your case.

What not to do

Self-help can turn your rent claim into a claim against you:

• Do not change the locks or deactivate access cards to keep the tenant out.
• Do not cut the electricity or water to pressure the tenant.
• Do not remove or keep the tenant’s belongings yourself; seizure for rent is done under a court warrant.
• Do not enter without the notice your agreement requires, except in a genuine emergency.

Section 7(2) of the Specific Relief Act 1950 is the reason: once the tenancy ends, possession can only be recovered through the court. If the tenant has clearly abandoned the unit (keys returned, belongings gone), record the evidence and ask a lawyer before you re-let.

Prevention: screening and the agreement

Prevention is easier than recovery. Before you accept a tenant, ask for:

• Identity: MyKad for Malaysians; passport with a current pass for foreigners. Letting to someone without a valid pass is an offence for the owner or occupier under section 55E of the Immigration Act 1959/63 (Daily Express court report, April 2024).
• Ability to pay: an employment letter and recent payslips, or company registration documents and an authorised signatory for a company let.
• History: a previous landlord’s contact, and, with the applicant’s written consent, a credit report from a registered credit reporting agency.
• Occupants: names and ID of everyone who will live in the unit.

Clause	Why it matters when rent stops
Rent due date, payment account, late charge	Defines when the tenant is in default and what extra is owed.
Default and termination	How many days of arrears allow you to terminate, and what notice to give.
Deposit deductions	Lets you apply the deposit to arrears; says it is not last month’s rent.
Recovery costs	Lets you claim reasonable legal costs of recovering arrears, if a court agrees.
Addresses for notices	An email and a postal address, so a notice of demand cannot be said to have gone astray.
Inventory schedule	Evidence of condition for deductions at the end.

Stamp the agreement on time

Tenancy stamp duty under LHDN’s guideline of 30 June 2026 is RM1 per RM250 of annual rent for a term of up to one year and RM3 for one to three years, so RM2,000 a month for one year costs RM96. 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). An unstamped agreement can still be stamped later with the penalty, but do it before any dispute, not during one.

If you own the home from abroad

Distance makes each step slower, so set things up before a problem starts.

• Appoint someone in writing. The Distress Act lets an agent apply if authorised in writing, and a power of attorney may be accepted. My power of attorney guide covers how one is signed abroad and deposited in Malaysia.
• Use a Malaysian lawyer for the notice and any claim. They can act while you stay overseas. The small claims route expects the parties to appear themselves, so ask the court about your situation first.
• Keep the rent traceable. Rent into an account in your name, never cash to a third party. Check any agent’s registration on the LPPEH register.
• Plan the day-to-day. My guide to managing a JB property from overseas covers inspections, repairs and bills.

Tax: unpaid rent and recovery costs

Rent from a Malaysian property is taxable in Malaysia, 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 rent collection fees and legal expenses incurred to enforce rent collection among the expenses that can be deducted from non-business rental income (paragraph 8.2(d)). It does not spell out how rent that is never paid is treated, so keep your records and ask a tax adviser or LHDN. See my rental income tax guide. This is not tax advice.

When the missing rent was paying your loan

Your loan, maintenance fees, quit rent and assessment still fall due while you chase the tenant. If loan arrears build, talk to your bank early; my guide to missed home loan payments explains the options. Keep paying the maintenance fee and sinking fund too.

Where to buy if this matters to you

Steady tenant demand makes it easier to re-let if a tenancy goes wrong. These areas draw Singapore commuters, families, students and local workers.

• JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station. See also homes near the RTS Link station.
• Mount Austin: families, schools and cafes, with condos and landed homes.
• Tebrau, Setia Indah and Molek: established neighbourhoods near malls.
• Iskandar Puteri: Medini, EduCity and the Second Link.
• Skudai, Tampoi and Kempas: around Universiti Teknologi Malaysia, with student and worker demand.
• Permas Jaya and Senibong: east-side condos at moderate rents.

Compare them on my JB property map, and see my guides to renting out property in Johor and letting to Singapore commuters.

More Johor living guides: Landlord tenancy agreements in JB · Buying a tenanted property in JB · Home insurance in JB · Renting in JB as a foreigner

Frequently asked questions

What can I do if my tenant does not pay rent in Malaysia?

Send a written reminder, then a formal notice of demand with a deadline. If that fails, you can sue for the arrears (small claims up to RM5,000, or a civil claim), apply for a writ of distress under the Distress Act 1951, and end the tenancy and seek a court order for possession.

Can a landlord change the locks or cut the utilities if the tenant stops paying?

No. Under section 7(2) of the Specific Relief Act 1950, a tenant who stays on after the tenancy ends can only be removed through court proceedings. Lockouts, cutting power or water, or taking the tenant’s belongings can expose the landlord to a claim.

Can I use the security deposit to cover unpaid rent?

Usually at the end of the tenancy, if the agreement lists unpaid rent as a deduction. Using it mid-tenancy depends on your agreement. Give the tenant an itemised statement of deductions.

How much can I claim in the small claims court in Malaysia?

Up to RM5,000 under Order 93 of the Rules of Court 2012, as reported in February 2025. Claims are heard by a magistrate, individuals represent themselves and the decision is final. Check the current limit with the court registry.

What is a writ of distress for unpaid rent?

A court warrant under the Distress Act 1951 that lets a bailiff seize and sell the tenant’s movable goods at the premises for rent arrears of up to 12 completed months before the application. Some goods, such as necessary clothing and bedding, are exempt.

Is there a Residential Tenancy Act or tenancy tribunal in Malaysia in 2026?

Not yet. In August 2026 the housing ministry said the Residential Tenancy Bill was still being finalised, and no tabling had been reported by early November 2026. Disputes go to the civil courts.

Need a reliable tenant for your JB home?

Tell me the project, unit type, furnishing and when it will be ready for a new tenant. I can share current asking rents nearby, market the unit, and check applicants’ documents and passes before you decide. For arrears, notices and court action, 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; Sinar Daily, “Govt finalises Residential Tenancy Bill to protect tenants”, 4 August 2026; Specific Relief Act 1950 (Act 137), section 7, Laws of Malaysia text, checked November 2026; Distress Act 1951 (Act 255), sections 2, 5, 6 and 8, Laws of Malaysia text (reprint as at 1 January 2006), checked November 2026; Civil Law Act 1956 (Act 67), section 28, Laws of Malaysia text, checked November 2026; Stamp Act 1949 (Act 378), section 52, Laws of Malaysia text, checked November 2026; Limitation Act 1953 (Act 254), section 6, Laws of Malaysia text, checked November 2026; Malay Mail, on the small claims procedure (Order 93, Rules of Court 2012), 28 February 2025; Council of ASEAN Chief Justices, Malaysia: Sessions Court jurisdiction, accessed November 2026; Malay Mail, on rental deposits and tenancy checks, 12 July 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; LHDN, Public Rulings (No. 12/2018, Income from Letting of Real Property, 19 December 2018), accessed November 2026; Chartered Tax Institute of Malaysia, summary of Public Ruling No. 12/2018, 23 December 2019; LHDN, Who is taxable (non-resident individuals), accessed November 2026; Daily Express, Immigration Act section 55E(1) case, 26 April 2024; LPPEH, public register of estate agents and negotiators, checked November 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 9 November 2026, not legal or tax advice. For arrears, termination or court action, use a Malaysian lawyer. Laws, court rules and stamp duty rules change; confirm with the court registry, LHDN and your lawyer before you act.