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problem-aware-tenant Published: 2025-01-23

Tenant Not Paying Rent? What to Do in Malaysia (Legal Options + Airbnb Alternative)

Dealing with non-paying tenants in Malaysia? Legal eviction takes 12+ months and costs RM5,000+. Discover why Airbnb guests are safer and more profitable than long-term rentals.

Tenant Not Paying Rent? What to Do in Malaysia (Legal Options + Airbnb Alternative)

Tenant Nightmares: When Long-Term Rental Goes Wrong in Malaysia

Every Landlord's Worst Nightmare

You thought you found the perfect tenant. Good income, verified employment, polite during viewing. They signed the lease, paid the first month's rent and deposit, and moved in.

Then month two arrived. No rent.

Month three? Same story. Texts go unanswered. Calls go to voicemail. When you finally reach them, there's always an excuse: "Salary delayed," "Family emergency," "Will pay next week for sure."

By month six, you've had enough. You want them out. But here's the terrifying reality: in Malaysia, evicting a non-paying tenant can take 12-18 months.

During this time, you're still paying:

  • Mortgage (if any): RM1,500-3,000/month
  • Maintenance fees: RM200-500/month
  • Assessment charges: RM100-300/month
  • Legal fees: RM3,000-10,000+
Total while fighting eviction: RM20,000-60,000+

And the tenant? Still living in YOUR property, rent-free, while you fight through Malaysia's slow legal system.

You're not alone. Every experienced landlord in Malaysia has at least one horror story. This article explores your legal options AND presents an alternative that many property owners are discovering: short-term Airbnb rentals eliminate tenant nightmares completely.

7 Common Tenant Problems in Malaysia

Before diving into eviction law, let's acknowledge the full spectrum of tenant issues landlords face:

1. Late or Missed Rent Payments

The most common problem:

  • Tenant pays 5-15 days late every month
  • Partial payments ("I'll pay the rest next week")
  • Complete payment stoppage after 3-6 months
  • Checks that bounce or bank transfers that "didn't go through"
Impact: Cash flow disruption, stress chasing payments

2. Property Damage Beyond Security Deposit

Tenants who don't respect your property:

  • Holes in walls from hanging art without permission
  • Stained carpets that need professional cleaning
  • Broken appliances (air con misuse, washer damage)
  • Scratched hardwood floors from pet claws
  • Burn marks on countertops from cooking accidents
Impact: RM5,000-20,000 in repair costs (deposit only covers RM1,500-3,000)

3. Unauthorized Tenants or Pets

Lease says "2 adults maximum." You visit and find:

  • 4-5 people living there
  • Children (who weren't disclosed)
  • Large dogs scratching floors and barking
  • Cats with litter box smell issues
  • Subletting to strangers on Airbnb without your permission
Impact: Wear and tear exceeds normal use, violations of lease terms

4. Refusal to Vacate After Lease Ends

Lease ends, tenant won't leave:

  • "Can't find another place"
  • "Need more time to save for deposit"
  • Simply ignoring your notices and continuing to live there
  • Changing locks to prevent you from entering
Impact: Forced eviction process (12-18 months)

5. Utility Bill Defaults

Tenant moves out, leaving unpaid bills:

  • Unpaid water bill (water authority can lien property)
  • Unpaid electricity (TNB arrears)
  • Unpaid internet (contracts in your name)
  • You're legally responsible as property owner
Impact: RM1,000-5,000 in unexpected debt

6. Noise Complaints from Neighbors

Your phone rings at 11 PM:

  • Neighbors complaining about loud parties
  • Music blasting at 2 AM
  • Guests coming and going all night
  • Condo management threatening to fine you
Impact: Stress, potential fines from condo management, strained relationships

7. Subletting Without Permission

Tenant becomes illegal landlord:

  • Your condo appears on Airbnb without your knowledge
  • Strangers staying in your property
  • Tenant collecting profit while risking your investment
  • No control over who enters your property
Impact: RM50,000+ in potential damage, liability issues

The Legal Reality: Evicting a Tenant in Malaysia

If you're dealing with a non-paying tenant, here's what Malaysian law actually looks like:

The Eviction Process (Step-by-Step)

Phase 1: Demand and Notice (1-2 months)
  1. Send formal demand letter for unpaid rent
  2. File notice at Tribunal for Homebuyers
  3. Wait for hearing date (can take months)
Phase 2: Tribunal Hearing (2-4 months)
  1. Attend hearing at Tribunal for Homebuyers
  2. Present evidence: unpaid rent, lease agreement, communication
  3. Tenant may defend or countersue
  4. Tribunal makes decision
Phase 3: Court Enforcement (6-12 months)
  1. If tenant refuses to leave after Tribunal order
  2. File application at High Court for writ of possession
  3. Bailiff executes court order (can take months to schedule)
  4. Total timeline: 12-18 months in many cases

The Financial Reality of Eviction

Cost ItemAmount Range
Lost rent (12 months)RM18,000-36,000
Lawyer feesRM3,000-10,000
Court feesRM500-2,000
Maintenance during vacancyRM2,400-6,000
Property repairs after evictionRM5,000-20,000
**TOTAL****RM28,900-74,000**

This doesn't even account for the emotional toll - 12-18 months of stress, uncertainty, and sleepless nights.

Why Police Can't Help

One of the most frustrating things landlords learn: police in Malaysia will not get involved in tenant disputes.

They'll tell you: "This is a civil matter. You need to go to court or the Tribunal."

Your tenant knows this. They know the system is slow, and they know they can live rent-free for months while you navigate the bureaucracy.

Long-Term Tenants vs Airbnb Guests: What's Different?

Here's a comparison that might surprise you:

AspectLong-Term TenantAirbnb Guest
**Commitment**12+ months locked in1-7 days
**Payment Issues**Monthly arrears possiblePaid upfront before arrival
**Damage Risk**High (lives there daily)Low (short stays, careful use)
**Eviction**Legal nightmare (12-18 months)Auto checkout (no action needed)
**Screening**Reference check (limited)Verified reviews, ID check
**Income Potential**Fixed RM1,500-2,500/monthVariable RM2,500-6,000/month
**Control**You're locked into leaseYou choose availability
**Property Access**Limited (tenant rights)Full access between bookings
**Wear and Tear**High (daily living)Lower (vacation use)

The Key Insight: Airbnb Guests Can't "Squat"

This is the biggest advantage:

  • Guests book specific dates (e.g., 3 nights)
  • Payment is collected upfront by Airbnb
  • Checkout is enforced at 11 AM (or agreed time)
  • If they overstay, Airbnb can ban them from the platform
  • No need for eviction - they simply leave when their stay ends
Zero legal battles. Zero court dates. Zero sleepless nights.

Why Airbnb Eliminates Tenant Headaches

When we explain this to property owners, the lightbulb moment is real:

No Long-Term Commitment

  • Guests stay 1-7 days, then leave
  • You control your calendar - block whenever you want
  • No one "moves in" and claims rights to your property

Payment is Guaranteed

  • Airbnb collects payment before guest arrives
  • Money held in escrow until 24 hours after checkout
  • If damage occurs, you can claim from security deposit
  • No chasing tenants for rent

Guests are Careful

  • They're on vacation, not living there permanently
  • Reviews matter to them (they want 5-star ratings)
  • Bad behavior gets them banned from Airbnb
  • Property damage is rare (we see it in <2% of bookings)

Higher Income Potential

  • Weekend rates can be 2-3x weekday rates
  • Holiday pricing (CNY, school holidays) premium
  • No long-term rental cap (you adjust prices based on demand)

Professional Management Handles Everything

  • We communicate with guests (you never deal with them)
  • We coordinate cleaning (your unit is professionally maintained)
  • We handle check-ins/outs (key handoff, greeting)
  • We screen guests (verification, reviews)

Real Numbers: Airbnb vs Long-Term Rental Income

Let's compare actual 3-year projections for a RM300,000 condo in Melaka:

Long-Term Rental Scenario:
  • Monthly rent: RM1,800
  • Occupancy: 100% (when tenant is present)
  • Vacancy risk: 1-2 months between tenants
  • Maintenance: Tenant handles minor issues
  • 3-Year Total: ~RM64,800
Airbnb Scenario (Professionally Managed):
  • Average daily rate: RM200
  • Occupancy: 21% (industry average for Melaka)
  • Monthly average: RM2,500-4,000
  • Maintenance: RM200-400/month (professional cleaning, repairs)
  • 3-Year Total: ~RM75,000-105,000
Difference: +RM10,000-40,000 more with Airbnb over 3 years

This doesn't even account for the risk avoidance - no bad tenants, no legal battles, no eviction nightmares.

Don't Let Another Nightmare Tenant Ruin Your Investment

If you're reading this because you're currently dealing with a problem tenant, we understand your frustration. You're probably exhausted from chasing payments, worrying about property damage, and wondering why you ever became a landlord.

There's a better way.

Switching your Melaka condo to Airbnb short-term rentals eliminates tenant problems while potentially increasing your income. Here's what we offer at iHousing:

Our Service Includes:

  • responsive guest communication (you never deal with guests directly)
  • Professional cleaning after every checkout
  • Maintenance coordination (trusted contractors in Melaka)
  • Multi-platform listing (Airbnb + Booking.com + Agoda + VRBO + Expedia)
  • Dynamic pricing (rates adjust automatically based on demand)
  • Professional photography and listing optimization
  • Monthly reporting with full transparency

For Parkland Avenue by the Sea:

We're the official Airbnb manager for this new development with transparent flat fee pricing:

  • 1 Room: RM200/month
  • 2 Rooms: RM250/month
  • 3 Rooms: RM300/month

For Other Condos (Silverscape, The Shore, etc.):

WhatsApp us for custom pricing - each property has different factors (size, location, condition), and we provide personalized quotes.
Take Action Today: Tired of tenant problems? WhatsApp us to explore Airbnb for your property.

We manage 100+ properties across 10+ condo developments in Melaka. We've seen every tenant nightmare scenario, and we've helped property owners switch to a model that eliminates the stress while maximizing income.

Your condo doesn't have to be a source of anxiety. It can be a hassle-free investment that generates consistent income without the headaches of long-term tenants.


About iHousing: Melaka's leading Airbnb property management company with 8 years of experience and 100+ properties under management. We specialize in transforming condos from tenant nightmares into profitable short-term rentals.

Ready to Start Your Airbnb Journey?

Contact iHousing today for a free consultation about your Melaka property.

Contact Us Now