No Residential Tenancy Act Yet: Your Rights as a Room Tenant, Deposits and How to Settle Disputes

No Residential Tenancy Act Yet: Your Rights as a Room Tenant, Deposits and How to Settle Disputes

"My deposit was not returned, what can I do?" is one of the most common questions from room tenants. The honest answer is: Malaysia does not yet have a dedicated residential tenancy act, so a lot depends on what you and your landlord write down and agree at the start. This article explains the current status as of 30 Sep 2026, what to keep, and what to do if a dispute comes up.

This article is general information, not legal advice. For a specific case, ask the court registry, legal aid or a lawyer.

Status of the Residential Tenancy Bill

According to Free Malaysia Today (12 August 2026):

  • Housing and Local Government Minister Nga Kor Ming said on 5 February 2026 that the bill was in its final drafting stage and he hoped it would pass the Dewan Rakyat this year.
  • At the time of that report the bill had not yet been tabled in Parliament, even though drafting began in 2019 (seven years ago).
  • The NGO Architects of Diversity wants it tabled at the next Dewan Rakyat meeting instead of being pushed to 2027. It is asking for enforceable anti-discrimination protection, an accessible Residential Tenancy Tribunal, and clear responsibilities for rental listing platforms.

We deliberately do not list specific provisions (such as a deposit cap or refund deadline) because we could not confirm them from an official source. Check the actual text once the bill is tabled.

Terrace house in a residential Senai street A residential terrace house in Senai. Clear rental terms protect both sides. Photo: Bilik Sewa Senai

What This Means for a Room Tenant

Until a dedicated act exists, your relationship with your landlord rests largely on the agreement (written or verbal) and the receipts you hold. If everything is verbal, it is hard to prove what was agreed. That is why written records matter, even for an inexpensive room.

The same NGO analysed 35,367 room rental listings in the Klang Valley and found that 42.8% explicitly excluded at least one ethnic group (FMT). That is a Klang Valley study, not Johor, but it shows why Sabahan, Sarawakian and foreign workers are wise to keep proof of every dealing.

What to Put in Writing and Keep

There are no mandatory figures in this list. It is good practice that helps if a dispute arises:

  1. A receipt for every payment: rent, deposit and key deposit. Note the date, amount, who received it and what it was for.
  2. A written agreement or note: both parties' full names, address and room number, monthly rent, deposit amount, whether water and electricity are included, and the notice period for leaving.
  3. Deposit refund terms: when it is returned and what can be deducted. In our guide to the real cost of renting a room, the deposit is refundable if there is no damage and no unpaid rent, usually within 14โ€“30 days after you move out.
  4. Dated photos of the room when you move in. Follow the move-in checklist.
  5. House rules: quiet hours, smoking, guests and shared kitchen use. Write them down or photograph the rules poster.
  6. Bank or e-wallet transfer proof if you pay without cash.

Room door with security chain bolt and knob lock Record the condition of the door, lock and walls when you move in. Photo: Bilik Sewa Senai

House rules sign asking residents to remove shoes House rules that are clearly displayed reduce misunderstandings. Photo: Bilik Sewa Senai

Moving Out: Avoiding a Deposit Dispute

  • Give notice early according to the agreed notice period, and keep proof (a WhatsApp message counts as a record).
  • Clean the room and take photos before handing over the key, from the same angles as your move-in photos.
  • Pay all rent up to your last day and ask for a receipt.
  • Ask the landlord to list any deduction and the reason. This is good practice, not a legal provision we have verified.
  • Hand over the key and ask for written or message confirmation.

Empty room with two wooden wall shelves A photo of the empty room at move-out is useful evidence of its condition. Photo: Bilik Sewa Senai

If the Deposit Is Still Not Returned

These steps are practical suggestions; only the small-claims part below comes from a judiciary source.

  1. Contact the landlord politely and ask the reason. Often it is a misunderstanding over dates or deductions.
  2. Send a written message that refers to your receipts and move-out date. Keep screenshots.
  3. Seek community help if you are a foreign worker or unsure of your rights; see our list of NGOs and help organisations near Senai.
  4. Small claims in the Magistrate's Court. According to the Selangor Judiciary page, the small-claims limit is RM5,000, under Order 93 of the Rules of Court 2012. The plaintiff obtains Form 198 from the nearest Subordinate Court registry, signs or thumbprints it personally, and files the claim. Individuals may not be represented by lawyers at the hearing. Ask the registry counter whether your case qualifies.

We could not confirm whether any dedicated tribunal or other procedure handles room-deposit claims, so ask the court counter or a legal-aid body.

Indoor corridor with wooden room doors Inside corridor of a shared house. Keep photos and receipts before you need them. Photo: Bilik Sewa Senai

Common Mistakes

  • Paying without a receipt. Cash without proof is hard to prove later. Ask for a receipt or at least a confirmation message.
  • Agreeing only verbally on deposit, rent or move-out date. Write even one line on WhatsApp.
  • Leaving without notice or without photos of the room, which makes a deduction dispute hard to settle.
  • Handing your key to a housemate without telling the landlord. Hand it over directly and keep proof.
  • Waiting too long to ask. If the deposit has not been returned within the agreed period, ask promptly while records are fresh.

Frequently Asked Questions

1. Has the Residential Tenancy Act been passed? No. As of the FMT report on 12 August 2026 the bill had not been tabled. The minister hoped it would pass in 2026, but no date has been announced.

2. Is there a legal cap on deposits? We found no official source we could verify about a deposit cap. Check the content of the bill when it is tabled.

3. Do I need a written agreement for a room? None of the sources we read requires one, but written records and receipts help a great deal if there is a dispute.

4. What is the small-claims limit? RM5,000, in the Magistrate's Court under Order 93 of the Rules of Court 2012, with no lawyers for individuals (judiciary page).

Sumber / Sources

All checked as of 30 Sep 2026.

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