Indah Water, Quit Rent, & Maintenance Fees for Rental unit: Who Pays What in Malaysia?
It’s the end of the tenancy. You’re ready to hand over the keys (or get your house back). Everything looks fine until someone pulls out a crumpled bill for RM96.
“I thought the landlord pays Indah Water?” says the tenant. “No, you used the toilet, you pay,” says the landlord.
Suddenly, a smooth handover turns into an awkward argument over less than RM100.
In Malaysia, renting a property involves more than just the monthly rental fee. Unlike a simple “rent + electricity” arrangement, we have a mix of utility bills and property taxes that can get confusing. We have Quit Rent (Cukai Tanah), Assessment Tax (Cukai Pintu), Indah Water, and Condo Maintenance Fees.
If you are a first-time landlord or a young renter, it is easy to get confused. Here is the simple breakdown of who pays what—and how smart landlords and tenants use these “small bills” as powerful negotiation tools.
The Golden Rule: Usage vs. Ownership
If you are ever confused about a specific bill, apply this simple logic:
- If it’s for living there (Usage), the Tenant pays.
- If it’s for owning the property (Ownership), the Landlord pays.
While everything is negotiable, this is the standard practice used in professional tenancy agreements in Malaysia.
The Tenant’s Responsibility: “I Use, I Pay”
According to standard tenancy practices, the tenant is responsible for consumables and services that they actively use.
- Electricity & Water: This is straightforward. You consume the power and water; you pay the bill.
- Internet/Broadband: Unless the unit is advertised as “Wi-Fi included,” this is subscribed to by the tenant.
- Indah Water (Sewerage): This is the tricky one that causes the most arguments. Indah Water Konsortium (IWK) charges a fee for treating wastewater. Since the tenant is the one generating the waste by living in the property, standard agreements list this as a Tenant responsibility.
The Landlord’s Responsibility: “I Own, I Pay”
These are costs the owner would have to pay even if the house was completely empty. They are tied to the ownership of the asset, not the usage.
- Assessment Tax (Cukai Pintu/Taksiran): This is paid to the local council (like DBKL or MBPJ) for services like collecting rubbish from the neighborhood and maintaining streetlights. This is the Landlord’s cost.
- Quit Rent (Cukai Tanah): This is the land tax paid to the state government. Again, this is strictly a Landlord obligation.
- Maintenance Fees & Sinking Fund: If the property is a condo or apartment, these fees go to the Joint Management Body (JMB) or Management Corporation (MC). Since these fees maintain the building’s facilities and property value, the Landlord pays.
The “Bargaining Chip” Strategy
Here is where things get interesting.
Indah Water bills for domestic units are usually quite low (often around RM8 per month). Because the amount is so small, many landlords and tenants don’t actually care about the money—they care about convenience or goodwill.
You can use this ambiguity to your advantage during the negotiation phase before signing the agreement.
For Tenants: The “Goodwill” Move
If you are negotiating the rent, don’t sweat the RM8. Instead, offer to pay it promptly in exchange for something you actually want.
- The Pitch: “I see Indah Water is listed as my responsibility. No problem, I will handle that and ensure the air-con is serviced every 6 months as per the contract. In exchange, would you be willing to lower the security deposit slightly?”
For Landlords: The “Convenience” Move
Sometimes, chasing a tenant for an RM8 bill every month is not worth the headache. You can use it to sweeten the deal.
- The Pitch: “I will absorb the Indah Water bill to make it easier for you—one less bill to worry about. However, I need the rent paid strictly by the 1st of the month via auto-debit.”
You lose RM8 a month, but you gain a tenant who feels they got a “deal” and is motivated to pay on time.
Why You Need It in Writing
Whether you follow the standard rules or use the “Bargaining Chip” strategy, it must be clearly written in your agreement.
If you leave it verbal (“Agreed by mouth”), you will likely argue about it 12 months later when the deposit refund is due.
- For Tenants: Our Pro-Tenant Agreement specifically protects you. It explicitly states that the Landlord is responsible for the Building Management fees, ensuring you don’t get stuck with a surprise bill from the JMB.
- For Landlords: Our Pro-Landlord Agreement ensures that if the tenant “forgets” to pay the utilities, you have the right to deduct those amounts from the Utility Deposit once the final bills are verified.
Conclusion
Don’t let an RM8 bill ruin an RM2,000 relationship.
The distinction is clear: Tenants pay for what they use (Water, Electricity, IWK), and Landlords pay for what they own (Quit Rent, Assessment, Maintenance Fees). But remember, a contract is only as good as its clarity.
Don’t rely on Google Translate or generic templates. Ensure both parties understand exactly who pays what by using a professional, bilingual tenancy agreement.
