‘Hidden’ is a strong word - makes it sound like landlords are masterminds who fill their properties with booby traps.

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Instead, think of these as ‘additional costs’, a blanket term for all extra expenses that come with renting an apartment or condominium on top of rent. 

As the title shows, there are quite a few of them and they add up!

So, if you’re considering renting your first apartment, prepare to fork out a bit more cash for these 13 additional renting expenses.

For your convenience, we’ll split them into three categories:

1. Deposits
2. One-off expenses
3. Recurring expenses

Let’s begin.

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Deposits

Deposits are technically a one-off expense, but they belong in their own category since you’re entitled to a conditional refund if you ever give up the unit, and there are five common types:

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1. Security deposit

A security deposit is used by the landlord as leverage to ensure you maintain the property  and keep renting for the minimum agreed period. 

Once you move out, the landlord inspects the property and the cost of repairs are deducted from this deposit before the remaining balance is returned to you.

So keep the unit clean and all will be well.

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In Malaysia, the security deposit is usually two months’ worth of rent.

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2. Utility deposit

If the electricity and water bill isn’t part of the monthly rent, landlords require a deposit that will be used to settle any outstanding bills once you move out. If there are no outstanding bills, you receive a full refund.

In Malaysia, the utility deposit is usually half a month’s worth of rent.

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3. Access card deposit

If your apartment or condo building requires an access card to enter, then expect a separate deposit for that, refundable upon returning the card to the landlord.

It varies between landlords, but around RM100 per access card is standard.

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4. Moving deposit

Some condominiums will ask for a deposit to cover any damage to common areas like lifts and floor tiles as you move in and out. Until paid, a tenant can’t move furniture into their unit, and will be refunded once the common areas are inspected, usually on the same day or the day after moving in or out. 

Of course, true rebels sidestep this by exclusively furnishing their home with inflatable furniture.

It varies by building, but expect at least RM1,000 to RM2,000

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5. Pet deposit

Some condominiums outright ban pets, but those that often ask for a deposit to cover the cost of repairing damages caused by your cat going Mortal Kombat on the gardener.

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This deposit varies by landlord, but be prepared to pay up to RM200

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One off expenses

These costs are mostly linked to the logistics of moving in and out, with a sprinkle of administrative and service fees because middle men have to eat!

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1. Earnest deposit

It’s called a deposit, but we’re listing this as a one off expense since it’s usually not refundable.

As moving into a new condo isn’t an overnight process for most, an earnest deposit is a fee paid to book or reserve the unit before you begin physically occupying it. It’s basically your first month of rent and tells the landlord to stop showing the unit to other prospective tenants.

In Malaysia, the earnest deposit is a full month’s rent.

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2. Delivery vehicle and professional movers

If moving with furniture, you’ll at least want to hire a van, pickup truck, or lorry that specialises in transporting furniture with straps and clips to hold heavy cabinets and bed frames in place.

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And for a hassle-free experience, you might hire a couple of professional movers with big biceps to wrap, box up, assemble / disassemble, and carry furniture around so you save your strength for the gym.

Be sure to hire a reputable company since they usually cover damage caused by personnel.

Estimate around RM700 for movers and a vehicle for a two bedroom apartment.

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3. Move in / out cleaning fees

You smell the previous tenant’s breakfast every time you breathe in even though the condo has been vacant for the past year. The unit clearly needs a good cleaning, but you’re back from the gym and need to recover.

Time to hire another professional!

Expect around RM400 to RM450 for a thorough cleaning during a move in / out process.

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4. Legal fees

This is what the lawyers charge for preparing the tenancy agreement. In Malaysia, this fee is subject to the Solicitors' Remuneration Order 2023 which has two tiers based on rent:

• Rent RM10,000 and below: A minimum of RM500 and up to 30% of the monthly rent
• Rent above RM10,000: A minimum of 15% and maximum of 25% of the monthly rent

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5. Stamp duty

In Malaysia, the stamp duty is a tax imposed on any commercial document including tenancy agreements, and are calculated slightly differently depending on the duration of the agreement, and based on every RM250 of the annual rental.

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In theory, if you find a condo for RM21 per month, the stamp duty could be as low as RM1. 😊

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Recurring expenses

These are expenses that continue throughout the duration of your tenancy. 

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1. Air conditioning service fees 

While repairs and maintenance are usually the landlord’s responsibility, it’s very common to find a clause in the tenancy agreement that requires the tenant to bear the cost of general servicing of the air conditioning units at least once every six months.

If you don’t honour this clause, the landlord is entitled to use the security deposit to pay for repairs to the air conditioning.

Expect to pay around RM80 to RM120 per unit for a general service.

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2. Regular cleaning

You finally admit it’s got nothing to do with the gym - you just hate housework with a passion and would rather pay for regular cleaning.

Expect to pay around RM120 every time the cleaners visit.

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3. Utilities 

We debated for a while whether or not to include this, but as obvious as it is, your utilities are technically still an additional expense, and for a typical condominium tenancy will include:

• Electricity
• Water
• Internet
• Sewerage

All in all, it’s common to pay at least 10% of your monthly rent on utilities.

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Putting it all together

Here’s a summary of the 13 hidden costs and their estimates:

Deposits:

• Security deposit: Usually two months’ worth of rent in Malaysia.
• Utility deposit: Typically half a month’s worth of rent.
• Access card deposit: Around RM100 per access card is standard.
• Moving deposit: At least RM1,000 to RM2,000.
• Pet deposit: Up to RM200.

One-off expenses:

• Earnest deposit: A full month’s rent.
• Delivery vehicle and professional movers: Around RM700.
• Move in / out cleaning fees: Around RM400 to RM450.
• Legal fees: Varies by rent, but at least RM500.
• Stamp duty: Based on duration of tenancy agreement and annual rental.

Recurring expenses:

• Air conditioning service: Around RM80 to RM120 per unit.
• Regular cleaning: Around RM120 per visit.
• Utilities: Typically 10% of monthly rent.

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Let’s say you’re going to rent a condominium for RM1,000 per month or RM12,000 annually.

Taking into account the above expenses, the first year would cost you RM23,209. 

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Suddenly, staying with your parents doesn’t seem so bad, does it?

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