Letter Of Indemnity Malaysia: Everything You Need to Know

by | Community, i-Stories, Property Trend

If you are a landlord or a property owner in Malaysia and you’ve recently purchased or rented a property, you would have come across the letter of indemnity.

But what is it?

In this article, we will outline the purpose of a letter of indemnity and what it entails.

What is A Letter of Indemnity?

A letter of indemnity in Malaysia is a document that one party (the indemnifier) issues to another party (the indemnified).

In the context of property ownership, this document is typically issued by a tenant to a landlord or property owner.

The purpose of a letter of indemnity is to serve as a safety net for the landlord or property owner against any potential financial losses or damages caused by a tenant’s actions.

Examples include failing to pay rent or violating other terms of the tenancy agreement.

Read More: Renting Guide for Tenants

What is Included In A Letter of Indemnity?

What is Included In A Letter of Indemnity

It’s important to have a well-drafted letter of indemnity that accurately reflects the terms and conditions of the agreement.

This will help to ensure that the indemnifier’s obligations are clearly understood and that the indemnified party has adequate protection against potential losses or damages.

While what is included in a letter of indemnity can vary depending on the situation, the document typically includes the following elements:

  • The names and addresses of the indemnifier (the tenant) and the indemnified (the landlord or property owner).
  • A clear and concise description of the event or situation that is being indemnified, such as the tenant’s use of the property.
  • The specific obligations of the tenant, such as their responsibility to pay rent and maintain the property in good condition.
  • The amount or limit of the indemnity, which is the maximum amount that the tenant will be responsible for in the event of a loss or damage.
  • The length of time the indemnity will remain in effect.
  • Any limitations on the scope of the indemnity, such as exclusions for intentional or criminal acts.
  • The method for resolving disputes that may arise in connection with the indemnity.
  • The signature of the tenant, along with the date, to confirm both parties’ agreement to the terms of the indemnity.

Read More: Top Refurbishment Ideas to Increase the Value of Your Rental Properties

When is A Letter of Indemnity Required in Malaysia?

In general, when a letter of indemnity is required would depend on the type of transaction you are involved in.

Let’s say a new tenant is moving into your property. The letter of indemnity is then needed as it can protect you if the tenant causes damage to the property, fails to pay rent and more.

Or if your property is currently undergoing renovation, the document can safeguard you from any financial losses or damages that may occur during the construction process.

Property Management with Rumah-i

As stated above, the letter of indemnity is a valuable tool for landlords and property owners.

If you are renting out your property in Malaysia, consider obtaining a letter of indemnity from your tenants to protect your interests.

As a trusted rental services company in Malaysia, Rumah-i offers comprehensive property management solutions to help landlords manage their property and ensure tenants pay their rent on time.

We also provide insurance coverage that protects landlords against property damage and runaway tenants.


- Entitle ONE time rental collection service for free

- Rental collection service for free is limited to FIRST 1,000 properties which engage the service and is for pre-launch registered owners only.

- Tenancy agreement must be prepared by Rumah-i.