Landlord wants to raise rent at renewal: what can a shop tenant do?

Start with the tenancy agreement, not the argument. If you have an option to renew, it may fix the new rent or cap the increase, and it sets a deadline for giving notice. Next, check what similar ground-floor units in your hub actually ask, make a written counter-offer, and prepare a fallback early, because Malaysian commercial tenancies usually need 3 months' written notice.

This is general information, not legal advice.

Look for these clauses before replying to the landlord:

• Option to renew: many shop tenancies are structured as 2 years plus 2 years. LH Low & Associates notes fixed terms over 3 years (or with renewals taking the total over 3 years) may be treated as a lease needing registration under the National Land Code, which is why "2 + 2" is common.
• Renewal rent formula: it may say "prevailing market rent", a fixed percentage, or a cap. A fixed formula binds both sides.
• Notice deadline: you may lose the option if you miss the date for exercising it in writing.
• Reinstatement: whether you must return the unit to bare shell if you leave. This cost matters when deciding whether to move.
• Subletting and assignment: these need the landlord's prior written consent. Paying goodwill (顶手费) to an outgoing tenant does not buy the tenancy.

If the clause says "market rent" with no cap, the number is open to negotiation, and evidence matters.

Compare the new figure with the asking range for similar units in your hub. MCE analysis of portal adverts from the last six months (Nov 2026, shop units only, duplicate and bait adverts removed, middle half of asking prices):

Work out your new rent per sq ft. If it sits above the upper end for a comparable row and frontage, you have a case. If it sits inside the range, the landlord may simply be moving to market. More hubs are on the shop rent index.

Remember that asking rents are not signed rents, and a corner or main-road unit should be compared with similar units, not with inner rows.

In some hubs, yes, and renewal is when local tenants feel it. The Edge (29 Jul 2026) wrote, as its own analysis rather than measured data, that once a landlord sees a nearby unit let for 30% to 50% more to a new entrant, they may push for steep rises at renewal. Nanyang Siang Pau (7 Jun 2026) reported that premium bids by China operators pushed some units' rent up 30% or more in Bandar Puteri Puchong, Mont Kiara, Sri Petaling, SS2 and TTDI, and that some local tenants moved out at renewal.

How to respond:

• Ask which unit the landlord is comparing with, and check whether it is a corner or main-road unit or an inner row like yours.
• Point to the cost of a gap. Nanyang quoted Polygon Properties' Jason Cho on "rent rigidity": after a high-paying tenant leaves, landlords keep high expectations and vacancies drag on. In Bandar Puteri Puchong, Oriental Daily (1 Jun 2026) reported vacancies rising after rents jumped by up to 50%.
• Offer a longer term or a stepped increase in exchange for a rent closer to the hub range.

Read more on China F&B brands and rents in Kuchai Lama, Kepong and Sri Petaling and on Bandar Puteri Puchong's rent rises.

• Your record: years of on-time payment, no complaints, a well-kept unit. EdgeProp has noted that in Damansara Jaya some tenants have operated for decades with modest rent increases; landlords value stable tenants.
• Cost of vacancy to the landlord: a vacant month, agent fees and possible rent-free time for a new tenant all cost money. In the 2021 MCO period, EdgeProp reported landlords giving 2 to 3 months rent-free and asking rents down 5% to 10%.
• Your renovation investment: a landlord whose unit now has a fitted kitchen and approved exhaust has a more valuable unit because of you.
• Timing: start talking 4 to 6 months before expiry, well before the 3-month notice window.

Put the counter-offer in writing, keep it polite, and include your evidence.

• Accept and plan: if the rent is within market range and your sales support it, staying may still be cheaper than moving, once you count renovation and lost trade.
• Relocate: start viewing other units early. The best ground-floor shops often let before the outgoing tenant leaves, during the notice period.
• Sell the business: if your lease allows assignment with consent, an outgoing tenant can sometimes collect goodwill from a buyer; get the landlord's written consent first.

• Diary the option deadline and notice period.
• Measure rent per sq ft and compare with your hub page.
• Write down your track record and investment in the unit.
• Send a written counter-offer with two alternatives.
• Re-stamp the renewed tenancy within 30 days of signing; SPEEDHOME notes the RM 2,400 stamp duty exemption was removed from 1 January 2025.
• Check terms in the glossary and ask a lawyer to review the renewal.

If you want market evidence for your renewal talk or a backup unit nearby, contact us.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.