Imagine this: You rent out your property to what seems like a decent tenant. A few months later, the police come knocking on your door, saying your unit has been used for illegal activities. Worse, you could be held responsible. Sounds terrifying, right? Well, that’s the reality Malaysian landlords are now facing.
Landlords Held Liable: The Growing Crackdown
Authorities in Malaysia are tightening their grip on landlords whose properties are used for scams, drug activities, or other crimes. According to Bukit Aman CID director Comm Datuk Seri Mohd Shuhaily Mohd Zain, landlords can now be charged under Section 35 of the Dangerous Drugs Act 1952, the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007, and even the Security Offences (Special Measures) Act 2012 (SOSMA). If found guilty, landlords could face hefty fines or even imprisonment.
The push for tougher regulations stems from a rise in illegal activities such as scam syndicates, drug operations, and illegal gambling dens operating out of rented residential and commercial properties. Law enforcement agencies argue that stricter penalties on landlords will force them to be more responsible and proactive in vetting their tenants.
How Landlords End Up in Trouble
You may be wondering—how can a landlord be blamed for what their tenant does? Here’s how it happens:
- Negligence in Screening Tenants
- If a landlord fails to conduct proper background checks and unknowingly rents to criminals, authorities may hold them accountable for negligence.
- Lack of Proper Documentation
- Some landlords rent their units informally, with no proper agreements or verification of the tenant’s identity. This makes it easier for criminals to operate undetected.
- Ignoring Red Flags
- Tenants paying in cash, refusing to sign agreements, or rarely being seen in the unit could be warning signs. Landlords who overlook these could be seen as complicit.
- Failure to Monitor Property Usage
- Some landlords take a hands-off approach, never checking on their property. This allows illegal activities to continue undetected, which can result in the landlord being held responsible.
Real-Life Cases: Lessons for Landlords
- Scam Call Centres & Love Scams
- Many luxury condos and high-rise units in KL have been used as scam call centres targeting victims worldwide. Some landlords claim they were unaware, but authorities insist they should have done their due diligence.
- Drug Dens & Illicit Activities
- In several cases, residential properties have been used as drug labs or human trafficking hubs. Once busted, landlords often struggle to prove they had no knowledge of these activities.
- Cyberjaya Online Scam Syndicate Raid
- In 2019, Malaysian authorities arrested 680 Chinese nationals in Cyberjaya, busting an online scam syndicate operating out of rented commercial and residential units. This massive crackdown highlighted how properties were being misused by foreign syndicates for fraudulent activities. Many of these properties were rented by unsuspecting landlords who had no clue about the illegal operations happening within their units.
Comparison with Other Countries
Australia
In Australia, landlords have a legal responsibility to ensure their properties are not being used for criminal activities. Under laws such as the Crimes Act 1900 (NSW), landlords can face serious legal consequences if they knowingly allow illegal activities on their premises. However, landlords are generally not held liable if they can prove they were unaware and took reasonable steps to prevent such activities.
Key differences from Malaysia:
- Landlords in Australia can protect themselves by ensuring they conduct thorough tenant checks and report any suspicious activities.
- Property managers often play a bigger role in screening tenants and inspecting rental properties regularly.
Singapore
Singapore has one of the strictest property rental laws in the region. Under the Misuse of Drugs Act and the Women’s Charter, landlords can be prosecuted if their property is used for illegal activities. The government has introduced measures such as mandatory landlord declarations and hefty fines for those who fail to conduct proper tenant screening.
Key differences from Malaysia:
- Singapore requires landlords to register their rental agreements and verify tenants’ identities through official government channels.
- The authorities conduct regular audits to prevent illegal use of rental properties.
What Landlords Should Do to Stay Safe
With the authorities pushing for tougher laws, landlords need to be proactive in protecting themselves. Here’s how:
Conduct Thorough Background Checks
- Verify tenant identities via MyKad or passport checks.
- Cross-check employment details and request references.
- Use the e-Court system to check for legal records (for locals).
- In Singapore-style enforcement, Malaysia may also require biometric verification of foreign tenants in the future.
Insist on Proper Agreements
- Draft a legally binding tenancy agreement with clear clauses.
- Include a clause that prohibits illegal activities on the premises.
- Make police reports if tenants refuse to cooperate or seem suspicious.
Regular Inspections & Monitoring
- Conduct periodic inspections (with prior notice to tenants).
- Get to know your neighbours—they may notice strange activities.
- Keep track of utility bills (sudden spikes in electricity usage can indicate illegal activities).
Work with Property Management & Authorities
- Inform the Joint Management Body (JMB) if suspicious activities occur.
- Cooperate with law enforcement if they request information.
Final Thoughts
The days of “close one eye and just collect rent” are over. Malaysian landlords must now take extra steps to ensure their properties are not misused, or they risk facing serious legal consequences. While it may seem like a hassle, doing your due diligence not only protects you from the law but also helps keep your community safe.
Renting out your property? Make sure you’re not unknowingly housing criminals.
What do you think of these new enforcement measures? Are they fair to landlords, or do they put too much pressure on property owners? Let us know in the comments!
Sources:
- New Straits Times (NST): “How landlords are responsible for their tenants’ crimes” (March 2025)
- SAYS: “Police: Landlords Can Be Held Liable If Properties Are Used For Criminal Activities” (March 2025)
- New Straits Times (NST): “Call for tougher laws on owners of crime-linked properties” (March 2025)
- The Sun: “680 Chinese nationals arrested in raid on Cyberjaya-based online scam syndicate” (November 2019)
