How much deposit do you pay to rent a shop in Malaysia? (2026)

How much deposit do you pay to rent a shop in Malaysia? (2026)

Shop rental deposits in Malaysia are usually 2 to 3 months security plus 1 month utility, about 3 to 4 months rent upfront. See worked examples for 2026.

Published 13 Nov 2026 · Updated 14 Nov 2026
Written by
Tok Ginstee
Tok Ginstee
REN 37505 · CID Realtors Sdn Bhd (E (1) 1855)
Short answer

Short answer

For a shop tenancy in Malaysia, expect a security deposit of two to three months' rent, a utility deposit of about one month, and usually one month's rent in advance. SPEEDHOME puts the total at roughly three to four months' rent upfront. Stamp duty, legal fees and renovation are on top.

What deposits are normal for a shop?

What deposits are normal for a shop?

Item Usual amount Refundable?
Security deposit 2 to 3 months' rent Yes, at the end, less any deductions
Utility deposit About 1 month's rent Yes, after final bills are settled
Advance rent 1 month's rent No, it is your first month
Earnest deposit (booking) Often part of the above, paid with the letter of offer Credited to the deposits if the deal goes ahead
Stamp duty Based on rent and term No, it is a tax

These ranges follow SPEEDHOME's guide. Prime units in tight rows may ask for more, and a Chinese-language report (9shares.my, moderate reliability) said some operators prepay 6 to 12 months' rent for front-row units. That is a competitive extreme, not a standard.

How much cash do you need? Worked examples

How much cash do you need? Worked examples

Based on 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), here is what typical asking rents mean in upfront cash, using two months' security, one month utility and one month advance rent (four months in total):

Hub Typical rent (mid example) Approx. upfront deposits and advance
Kepong Baru RM 7,000 RM 28,000
Bandar Puteri Puchong RM 12,000 RM 48,000
TTDI RM 13,000 RM 52,000
SS2 Petaling Jaya RM 14,000 RM 56,000

The mid examples sit inside each hub's typical range (Kepong Baru RM 5,800 to RM 9,000, Bandar Puteri Puchong RM 8,000 to RM 17,500, TTDI RM 11,500 to RM 23,000, SS2 RM 10,000 to RM 17,000). With three months' security the totals rise by one more month's rent.

What else do you pay at the start?

What else do you pay at the start?

  • Stamp duty. From 1 January 2025 the old RM 2,400 exemption was removed. A RM 10,000 a month, two-year tenancy costs about RM 1,440 in stamp duty (SPEEDHOME). See our stamp duty guide.
  • Legal fees for drafting or reviewing the tenancy agreement.
  • Renovation and licences, usually the largest item for food businesses.
  • Goodwill (顶手费) if you take over a running business. Read our goodwill guide.
Can you negotiate the deposit?

Can you negotiate the deposit?

Often, yes, especially where units have been empty for some time. Useful levers:

  • Offer a longer committed term in exchange for two months instead of three.
  • Offer a company guarantee or a director's guarantee.
  • Ask for the rent-free fit-out period to start after handover, not at signing.
  • In a soft market landlords give more. EdgeProp reported in 2021, during the MCO, that asking rents in SS2 fell 5% to 10% and some landlords gave two to three months rent-free.

In a prime row with several interested tenants, expect less flexibility.

How do you get the deposit back?

How do you get the deposit back?

  1. Photograph and video the unit at handover, and attach an inventory to the agreement.
  2. Keep all utility bills and pay the final ones on time.
  3. Reinstate the unit as the agreement requires. Many shop tenancies require you to remove fit-out and return the shell.
  4. Give proper written notice, usually three months.
  5. Agree in writing how many days the landlord has to refund after handover.

Most deposit disputes come from unclear reinstatement clauses. Check them before you sign, as covered in our tenancy clauses checklist.

Is the deposit protected by law?

Is the deposit protected by law?

There is no separate deposit protection scheme for commercial tenancies in Malaysia. Your protection is the wording of the tenancy agreement, so make sure deduction rights and the refund period are spelled out. This is general information, not legal advice.

Compare rent levels on the shop rent index or contact us for a budget for a specific unit.

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

FAQ

Frequently asked questions

Is the shop security deposit refundable in Malaysia?

Yes, it is normally refunded at the end of the tenancy, less any amounts the agreement allows the landlord to deduct, such as unpaid rent, damage or reinstatement costs.

What is the difference between security deposit and utility deposit?

The security deposit covers rent and damage obligations. The utility deposit covers unpaid electricity and water bills at the end. Both are usually refundable.

Do I pay the deposit when I sign the letter of offer?

Usually an earnest or booking deposit is paid with the letter of offer, and the balance of the deposits and advance rent is paid when the tenancy agreement is signed.

Can a landlord ask for six months deposit for a shop?

A landlord can ask for any amount, since it is a private contract. Two to three months' security is common, but some prime rows ask more. Negotiate or walk away if it does not fit your budget.

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