My tenant wants to transfer the shop: should I agree?

A transfer (often called 出顶 in Malaysian Chinese) is a request, not a right. Most shop tenancies say the tenant cannot sublet or assign without your prior written consent. You can approve, refuse, or approve on conditions such as a new tenancy agreement at current market rent. This is general information, not legal advice.

When a business changes hands, the outgoing operator usually sells the fit-out, equipment and customer base for a goodwill or key money payment (顶手费). Malaysian takeover adverts show the scale: a 2,390 sq ft ground-floor drinks shop in Bandar Mahkota Cheras asked RM 80,000 goodwill at RM 8,000 a month rent, and F&B takeovers commonly ask RM 68,000 to RM 80,000 (individual adverts, market evidence only).

That payment is between the two operators. As the research we rely on puts it, paying goodwill does not buy the tenancy. The incoming operator only gets the right to occupy your shop if you agree.

• Consent clause. Subletting or assignment without the landlord's prior written consent is generally a breach (LH Low & Associates, commercial tenancy FAQ).
• Term and registration. Fixed terms over three years, or renewals taking the total over three years, may be treated as a lease needing registration under the National Land Code, which is why "2 + 2" structures are common.
• Key money. Some jurisdictions such as New South Wales and Victoria prohibit key money in retail leases. No specific Malaysian prohibition or case law was found, so treat it as a private contract and see a lawyer.

Read your own tenancy carefully. Some agreements set out a process for assignment; others ban it outright.

If the tenant simply assigns the existing agreement, the existing rent and terms usually carry over until the term ends. You generally cannot change them mid-term without agreement. What you can do, if the tenancy gives you discretion over consent, is make your approval conditional on a new tenancy at a new rent. Many landlords prefer this because it resets the term, the deposit and the rent at once.

How much? Benchmark against your hub, not against the goodwill figure. Our data shows the middle half of ground-floor asking rents (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): for example SS2 Petaling Jaya at RM 10,000 to 17,000 a month and Taman OUG at RM 5,000 to 13,000. A large goodwill payment is a signal that the location is strong, so pricing at the upper end of your hub's range can be reasonable. Check the shop rent index for other hubs.

• Company registration, directors and personal guarantee
• Their other outlets, visited at peak hours
• The trade and any licence requirements
• Fit-out drawings, especially exhaust, gas, grease trap and power load
• Fresh security deposit: 2 to 3 months' rent plus 1 month utility is usual (SPEEDHOME)
• Written settlement of the outgoing tenant's arrears, damage and deposit
• New stamp duty if a new tenancy is signed: from 1 January 2025 the RM 2,400 exemption was removed, and for terms of 1 to 3 years the rate is RM 3 per RM 250 of annual rent (SPEEDHOME). For RM 10,000 a month over two years that is about RM 1,440, due within 30 days of signing.

The simplest approach is to refund the outgoing tenant's deposit (less deductions) once the new tenant pays a fresh one. Mixing deposits between parties creates disputes. Put every step in writing.

Refusing is your right in most tenancies, but think about the alternative. If the outgoing operator leaves, you face a notice period, a possible vacancy and fit-out removal. A well-vetted incoming operator on a fresh tenancy at market rent is often the best outcome for everyone.