Early Termination of Tenancy in Malaysia: What Tenants Should Know (and How to Do It Properly)

Sometimes life changes faster than expected — you get a job transfer to another city, your landlord decides to sell, or family circumstances force you to move out earlier than planned.

Whatever the reason, ending your tenancy early is a serious step because your tenancy agreement is a legally binding contract. If you walk away without following the proper process, you could lose your deposit — or even be asked to pay rent for the remaining months.

Here’s what Malaysian tenants should know (and do) before deciding to end their tenancy early.

1. Understand What “Early Termination” Means

When you sign a tenancy agreement, you agree to stay for a fixed period — usually 12 or 24 months.

If you move out before that end date, it’s called early termination. In Malaysia, the right to end early isn’t automatic — it depends on what’s written in your tenancy agreement.

That’s why you should always check for a section titled “Early Termination” or “Break Clause.”
This clause explains:

  • How much notice period you must give (often 60 days).
  • Whether you must pay any compensation, such as one month’s rent.
  • If there are exceptions (for example, job relocation or medical reasons).

If your agreement doesn’t mention any of these, you technically have no right to terminate early without the landlord’s consent. That means leaving early could be treated as a breach of contract.

2. Know Your Rights Under a Tenant-Friendly Agreement

A good tenancy agreement doesn’t trap you — it gives you fair options.

For example, the DIYa Pro-Tenant Tenancy Agreement allows tenants to:

  • End the tenancy early by giving 60 days’ written notice, and
  • Be exempted from paying compensation in genuine hardship situations such as job relocation, transfer, or medical emergency (with supporting proof).

This gives tenants flexibility without unfair penalties — something most generic templates don’t include.

If your current agreement doesn’t mention this, you’ll need to negotiate with your landlord and reach a written mutual agreement on how to end early (for example, “tenant to forfeit one month’s rent as compensation”).

3. The Correct Steps to End a Tenancy Early

If you’ve decided to move out, here’s the proper way to do it:

✅ Step 1: Review your agreement

Read the section on Early Termination / Break Clause carefully.
Check the required notice period, compensation, and any conditions stated.

✅ Step 2: Give written notice

Send a formal letter or email to your landlord.
A WhatsApp message is not enough — you need a dated, written record showing when notice was given.

✅ Step 3: Provide proof if necessary

If you’re ending the tenancy for valid hardship reasons (like job relocation or health issues), attach a supporting document such as an employment transfer letter or medical report.

✅ Step 4: Continue paying rent during the notice period

You’re still responsible for rent until your notice period ends.
If you stop paying earlier, the landlord can deduct from your deposit or take legal action.

✅ Step 5: Arrange a proper handover

Before leaving, do a joint inspection with your landlord, return all keys and access cards, and settle your final utility bills.
This helps ensure you get your deposit refunded smoothly.

4. Sample Letter for Early Termination (Tenant to Landlord)

Subject: Notice of Early Termination of Tenancy Agreement

Dear [Landlord’s Name],

I refer to our Tenancy Agreement dated [agreement date] for the property located at [property address].

As stated in the agreement, I am giving [60] days’ written notice to terminate the tenancy early. My final tenancy date will therefore be [date].

The reason for this termination is [e.g. job relocation / family emergency / medical reason]. Supporting documents can be provided if required.

I will continue to pay rent and maintain the property until the end of the notice period. Please advise on a convenient date for the final inspection and handover of keys.

Thank you for your understanding and cooperation.

Yours sincerely,
[Tenant’s Full Name]
[IC No.]
[Date]

You can send this by email and bring a printed copy when you hand over the unit. Keeping everything documented helps avoid disputes later.

5. What Happens If You Leave Without Notice

Leaving suddenly — or just stopping rent payments — may seem tempting, but it’s risky.
If you vacate without notice or mutual agreement, your landlord can:

  • Forfeit your entire security deposit,
  • Demand rent for the remaining tenancy period, or
  • Issue a legal demand letter for breach of contract.

Even if you think “it’s only a few months left,” walking away without notice can cost much more than doing it the right way.

6. Final Tip: Protect Yourself Before You Sign

The best time to think about early termination is before you sign the agreement.

Most disputes happen because tenants don’t realise how one-sided standard agreements can be — some don’t even allow termination at all.

That’s why our DIYa Pro-Tenant Tenancy Agreement Pack is written to protect you fairly.
It includes:

  • Clear and reasonable early termination options,
  • Bilingual (English + Bahasa Malaysia) versions for easy understanding, and
  • A simple Tenant Guidebook to help you know exactly what each clause means.

Renting shouldn’t feel like a gamble.

With DIYa’s Pro-Tenant Tenancy Agreement pack, you can rent confidently — knowing your rights are clearly stated and protected.

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