Landlord wants 3 months deposit plus utility deposit for a condo in PJ, is this legal and can I negotiate?

Question

Looking to rent a 2-room condo in Petaling Jaya, rent is RM1,800. The landlord is asking for 2 months security deposit, half month utility deposit, plus 1 month advance rental, so I need to fork out almost RM8,000 upfront just to move in. Is this the standard in Malaysia or is he trying his luck? First time renting on my own so I don't want to kena cheat.

Tech Girl Xin Yi · Accepted Answer

What your landlord is asking is actually the Malaysian standard, so he's not cheating you, but everything is negotiable especially in the current PJ market where there's a lot of supply. The normal formula is 2 months deposit (2x rent), half month utility deposit, plus 1 month advance, which comes to 3.5 months total, so your RM8,000-ish is correct math on RM1,800 rent. Since there's no Residential Tenancy Act yet in Malaysia, none of this is legally fixed, it's all convention and whatever both parties agree to in the tenancy agreement. My advice, offer to sign a 2-year lease in exchange for reducing the deposit to 1.5 months, landlords love long tenants and will often bite. Also insist on a proper inventory list with photos of every existing scratch and stain, because deposit disputes at move-out are where most people actually lose money.

Auntie Confinement Poh · Answer

Standard lah, 2 plus 1 plus half is what almost every landlord asks in the Klang Valley. If he's asking 3 months security deposit then yes that's excessive and you should push back. At 2 months you're within normal range. Just make sure it's all written into the TA with the exact refund conditions.

Auntie Property Lily · Answer

The bigger risk isn't the amount, it's getting your deposit back at the end. So many people including me have had landlords deduct crazy amounts for normal wear and tear when you move out. Take dated photos and a video walkthrough on the day you move in, note every mark, and email it to the landlord so there's a timestamp. That evidence is what saves your RM3,600 later.

Startup Founder Hakim · Answer

You can definitely negotiate the utility deposit part, some landlords drop it entirely if the utilities are already under your name via TNB and Air Selangor. I got my landlord to waive the half-month utility deposit by agreeing to pay via standing instruction so he never has to chase me. In PJ right now tenants have the upper hand, plenty of empty units, so don't be shy to ask.

Auntie Retire Devi · Answer

Bro just make sure the tenancy agreement is properly stamped at LHDN, costs only around RM100+ depending on rental. Unstamped TA cannot be used as evidence in court if there's a dispute later. A lot of first-timers skip this to save money and regret it. The stamping is your legal protection, don't skip it.

Tech Bro Aiman · Answer

Make sure you know whether the agent commission is also on top of all this. Sometimes there's a hidden half-month or one-month agent fee, though usually the landlord pays the agent, not you. Clarify who's paying the agent before you sign anything. Get every single number in writing before you transfer even one sen.

Landlord wants 3 months deposit plus utility deposit for a condo in PJ, is this legal and can I negotiate?

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