Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Yes, the analysis of Johor's property market is included in our pack
Johor is one of the most active rental markets in Malaysia right now, driven by cross-border demand from Singapore and major infrastructure projects like the RTS Link.
This guide covers everything a foreign investor needs to know about renting out residential property in Johor in 2026, from legal requirements to realistic income figures.
We constantly update this blog post as regulations, rental rates, and market conditions change.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Johor.
Insights
- Johor rental yields average around 5.3% gross, but properties near the upcoming RTS Link corridor are achieving 6% to 8% due to intense cross-border tenant demand from Singapore.
- Short-term rental occupancy in Johor Bahru hovers around 40% to 44% on average, meaning most Airbnb hosts face significant unbooked nights unless they outperform the market.
- Foreign landlords in Johor do not need Malaysian residency to collect rent, but they must register with the tax authority (LHDN) because rental income is taxable at a flat non-resident rate.
- Strata management bodies in Johor condos can legally ban short-term rentals through house rules, and Malaysia's Federal Court has upheld this power in a landmark 2020 case.
- The minimum purchase price for foreigners buying high-rise property in Johor is RM1 million, though the Medini Iskandar zone has no minimum price restriction for new strata units.
- Neighborhoods like Skudai, Mount Austin, and Tebrau tend to offer the strongest rental yields in Johor because purchase prices remain reasonable relative to steady tenant demand.
- Furnished apartments in Johor typically rent 15% to 25% faster than unfurnished ones, especially among expats and cross-border professionals who want move-in-ready units.
- As of January 2026, foreign buyers in Malaysia face a new flat stamp duty rate of 4% to 8% under Budget 2026, replacing the previous progressive scale.
Can I legally rent out a property in Johor as a foreigner right now?
Can a foreigner own-and-rent a residential property in Johor in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Johor, provided they meet the state's minimum purchase price of RM1 million for high-rise units or RM2 million for landed property in designated international zones.
The most common ownership structure for foreign landlords in Johor is direct freehold or leasehold ownership in your own name, without requiring a local partner or nominee arrangement.
The single biggest restriction foreigners face in Johor is the mandatory State Authority Consent, which takes 2 to 6 months to obtain and must be approved before you can complete the purchase and start renting.
If you're not a local, you might want to read our guide to foreign property ownership in Johor.
Do I need residency to rent out in Johor right now?
No, you do not need Malaysian residency to legally rent out your property in Johor, and many foreign landlords manage their rentals remotely from overseas.
However, you will need a Malaysian tax identification number from LHDN (the Inland Revenue Board) because rental income earned in Johor is Malaysian-source income and must be declared, with non-residents taxed at a flat rate.
A local Malaysian bank account is not strictly required, but it is strongly recommended because it simplifies rent collection, bill payments, and provides a clear paper trail for tax filings.
Managing a rental property in Johor entirely remotely is practical and common, especially when you hire a local property manager or agent to handle tenant screening, viewings, repairs, and move-in logistics.
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What rental strategy makes the most money in Johor in 2026?
Is long-term renting more profitable than short-term in Johor in 2026?
As of early 2026, long-term renting in Johor is generally the safer and more predictable strategy, though short-term rentals can gross more in peak weeks if your building allows them and you are near demand hotspots.
A well-managed long-term rental in Johor Bahru typically earns around RM24,000 to RM30,000 per year (about USD 5,400 to USD 6,800 or EUR 5,000 to EUR 6,300), while a well-managed short-term rental might gross RM35,000 to RM45,000 (about USD 7,900 to USD 10,200 or EUR 7,300 to EUR 9,400) but with higher operating costs and vacancy risk.
Short-term renting financially outperforms long-term in Johor mainly in buildings that explicitly allow it and locations near the CIQ border crossing, Puteri Harbour, or the upcoming RTS Link corridor where Singapore visitors and business travelers create consistent demand.
What's the average gross rental yield in Johor in 2026?
As of early 2026, the average gross rental yield for residential properties in Johor Bahru and Iskandar Puteri sits around 5.3% per year, which is competitive compared to other Malaysian cities.
The realistic low-to-high gross yield range in Johor covers most properties between 4.5% and 6.5%, with prime RTS corridor units and well-located serviced apartments sometimes reaching 7% to 8%.
Smaller units like studios and one-bedroom apartments in Johor typically achieve the highest gross yields because their lower purchase prices relative to rent create better return ratios.
By the way, we have much more granular data about rental yields in our property pack about Johor.
What's the realistic net rental yield after costs in Johor in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Johor is around 3.7% per year, once you subtract typical holding expenses from the gross.
The realistic net yield range that most Johor landlords experience falls between 2.8% and 4.8%, depending on purchase price, building fees, and how efficiently they manage vacancies.
The three main cost categories that reduce gross yield to net yield specifically in Johor are condo maintenance fees plus sinking fund contributions (which can be surprisingly high in newer towers), property management or agent fees for remote landlords, and periodic costs like repainting, appliance replacement, and tenant turnover expenses.
You might want to check our latest analysis about gross and net rental yields in Johor.
What monthly rent can I get in Johor in 2026?
As of early 2026, typical monthly rents in Johor Bahru are around RM1,300 (about USD 295 or EUR 270) for a studio, RM1,800 (about USD 410 or EUR 375) for a one-bedroom, and RM2,400 (about USD 545 or EUR 500) for a two-bedroom apartment.
A realistic entry-level monthly rent range for a decent studio in Johor Bahru is RM1,000 to RM1,700 (about USD 225 to USD 385 or EUR 210 to EUR 355), depending on location and furnishing level.
A typical one-bedroom apartment in Johor Bahru rents in the range of RM1,400 to RM2,400 per month (about USD 315 to USD 545 or EUR 290 to EUR 500), with higher rents near the CIQ and upcoming RTS Link.
A standard two-bedroom apartment in Johor Bahru commands RM1,900 to RM3,300 per month (about USD 430 to USD 750 or EUR 395 to EUR 690), with premium units in Puteri Harbour and Danga Bay reaching the top of that range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Johor.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Johor in 2026?
What's the total "all-in" monthly cost to hold a rental in Johor in 2026?
As of early 2026, the estimated total all-in monthly cost to hold and maintain a typical rental condo in Johor is around RM650 (about USD 145 or EUR 135), excluding any mortgage payments.
A realistic low-to-high monthly cost range for most standard Johor rental properties falls between RM450 and RM1,050 (about USD 100 to USD 240 or EUR 95 to EUR 220), depending on building fees and whether you use a property manager.
The single largest contributor to monthly holding costs in Johor condos is usually the maintenance fee plus sinking fund, which can easily reach RM300 to RM500 per month in newer high-rise developments with extensive facilities.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Johor.
What's the typical vacancy rate in Johor in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Johor Bahru is around 10% to 15%, meaning most landlords should plan for roughly 1 to 2 months of vacancy per year.
A prudent landlord in Johor should realistically budget for about 1.5 months of vacancy per year because tenant turnover, re-listing time, and occasional overpricing can easily stretch gaps between leases.
The main factor causing vacancy rates to vary across Johor neighborhoods is proximity to employment centers and transport links, with areas near CIQ, Medini, and the RTS corridor filling faster than suburban pockets further from commuter routes.
The highest tenant turnover and vacancy periods in Johor typically occur around Chinese New Year (January or February) and year-end (November to December) when many tenants relocate, renew, or return home for extended holidays.
We have a whole part covering the best rental strategies in our pack about buying a property in Johor.
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Where do rentals perform best in Johor in 2026?
Which neighborhoods have the highest long-term demand in Johor in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Johor are Tebrau, Mount Austin, and Bukit Indah, all offering a deep pool of local and professional tenants.
Families in Johor tend to concentrate their rental searches in Bukit Indah, Permas Jaya, and Horizon Hills because these areas offer spacious units, good schools, malls, and family-friendly amenities.
Students in Johor create strong rental demand in Skudai and Taman Universiti due to their proximity to Universiti Teknologi Malaysia (UTM) and the surrounding educational ecosystem.
Expats and international professionals in Johor gravitate toward Puteri Harbour, Medini, and Danga Bay, where furnished units, modern facilities, and easy access to Singapore via CIQ command higher rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Johor.
Which neighborhoods have the best yield in Johor in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Johor are Skudai, Mount Austin, and Tebrau, where solid rents combine with relatively affordable purchase prices.
The estimated gross rental yield range for these top-yielding Johor neighborhoods typically falls between 5.5% and 7%, outperforming the city-wide average of around 5.3%.
The main characteristic allowing these neighborhoods to achieve higher yields is that purchase prices have not inflated as much as waterfront or premium areas, while tenant demand remains strong due to practical location advantages like university proximity, mature amenities, and commuter access.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Johor.
Where do tenants pay the highest rents in Johor in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Johor are Puteri Harbour, Medini, and Danga Bay, all commanding premium pricing for waterfront or well-connected units.
A typical monthly rent for a standard apartment in these premium Johor neighborhoods ranges from RM2,500 to RM4,500 (about USD 565 to USD 1,020 or EUR 520 to EUR 940), with luxury units exceeding these figures.
The main characteristic that allows these neighborhoods to command the highest rents is their combination of modern high-rise towers with resort-style facilities, proximity to the Singapore border via CIQ, and lifestyle appeal that attracts tenants willing to pay for convenience and image.
The typical tenant profile in these highest-rent Johor neighborhoods includes Singaporean cross-border workers, expatriates employed in Iskandar Malaysia's business districts, and professionals seeking furnished, move-in-ready units with short commutes to Singapore.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malaysia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Johor in 2026?
What features increase rent the most in Johor in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Johor are proximity to the CIQ or upcoming RTS Link stations, a fully furnished and move-in-ready setup with working air conditioning, and reliable fiber internet connectivity.
The single most valuable feature in Johor right now is proximity to cross-border transport links, which can add a rent premium of 15% to 25% compared to similar units further from CIQ or the RTS corridor.
One commonly overrated feature that Johor landlords invest in but tenants rarely pay extra for is an excessively high-end kitchen renovation, since most renters prioritize location and basic functionality over luxury finishes they will not own.
One affordable upgrade that provides a strong return on investment for Johor landlords is installing a quality fiber internet connection and ensuring all air conditioning units are serviced and working properly, since these basics matter more to tenants than cosmetic upgrades.
Do furnished rentals rent faster in Johor in 2026?
As of early 2026, furnished apartments in Johor typically rent about 2 to 4 weeks faster than unfurnished ones, with the biggest advantage seen among expats and cross-border professionals who want to move in immediately.
Furnished apartments in Johor generally command a rent premium of 15% to 25% over unfurnished units, making the upfront furnishing investment worthwhile for landlords targeting mobile tenants.
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How regulated is long-term renting in Johor right now?
Can I freely set rent prices in Johor right now?
In Johor, landlords have full freedom to set initial rent prices by agreement with tenants, as Malaysia does not impose rent control or caps on private residential tenancies.
Rent increases during a tenancy in Johor are governed by the tenancy agreement itself, meaning you generally cannot raise rent mid-lease unless the contract explicitly allows it and the tenant agrees.
What's the standard lease length in Johor right now?
The standard lease length for residential rentals in Johor is one year, though two-year leases are also common for stable tenants seeking longer commitments.
Landlords in Johor typically require a security deposit of two months' rent plus a utilities deposit of half to one month's rent, which is standard market practice rather than a legal cap.
At the end of a tenancy in Johor, the security deposit should be returned within a reasonable period after deducting any legitimate costs for repairs, unpaid rent, or unpaid utilities as documented in the tenancy agreement.
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Johor in 2026?
Is Airbnb legal in Johor right now?
Airbnb-style short-term rentals are not illegal in Johor, but they operate in a gray area where your condo's strata management can ban them through house rules, and Malaysia's Federal Court has upheld this power.
There is no single license required for all short-term rentals in Johor, but if your operation looks like a lodging business with frequent guest turnover, you may need to register with the local council (MBJB) and comply with licensing requirements.
Malaysia has discussed national guidelines for short-term rental accommodation but has not implemented a universal night cap, so any limits depend on your building's by-laws and local authority rules rather than a single federal number.
The most common consequence for operating a non-compliant short-term rental in Johor is enforcement action by your strata management body, which can include fines, legal action, or eviction proceedings if you violate the building's house rules.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Johor.
What's the average short-term occupancy in Johor in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Johor Bahru is around 40% to 44%, meaning most hosts have their property vacant more than half the year.
The realistic low-to-high occupancy range for Johor Bahru short-term rentals spans from about 25% for underperforming listings to 65% or higher for top-tier properties with excellent reviews and prime locations.
The highest occupancy months for short-term rentals in Johor are typically June and December, coinciding with school holidays, festive seasons, and cross-border travel peaks from Singapore.
The lowest occupancy months in Johor tend to be May and August, when travel demand dips between holiday seasons and fewer visitors cross from Singapore.
Finally, please note that you can find much more granular data about this topic in our property pack about Johor.
What's the average nightly rate in Johor in 2026?
As of early 2026, the average nightly rate for short-term rentals in Johor Bahru is around RM250 to RM270 (about USD 57 to USD 61 or EUR 52 to EUR 56), though this varies widely by property type and location.
A realistic low-to-high nightly rate range for most Johor Bahru short-term listings spans from RM150 to RM450 (about USD 34 to USD 102 or EUR 31 to EUR 94), with budget units at the bottom and premium waterfront properties at the top.
The typical nightly rate difference between peak season (December and June) and off-season (May and August) in Johor Bahru is around RM50 to RM100 (about USD 11 to USD 23 or EUR 10 to EUR 21), with savvy hosts using dynamic pricing to capture the uplift.
Is short-term rental supply saturated in Johor in 2026?
As of early 2026, the short-term rental market in Johor Bahru shows moderate to high saturation, with over 4,500 active listings competing for guests and average occupancy hovering around 40% to 44%.
The current trend in Johor Bahru's STR listing count is growing, with active listings increasing by roughly 5% to 8% year-over-year, adding supply pressure to an already competitive market.
The most oversaturated neighborhoods for short-term rentals in Johor are the central Johor Bahru city core and Danga Bay, where high condo density and many investor-owned units create intense competition for the same pool of guests.
Neighborhoods in Johor that still have room for new short-term rental supply include pockets near the upcoming RTS Link stations (like Bukit Chagar) and areas serving niche demand like Puteri Harbour's marina tourism, where supply has not yet caught up to projected demand growth.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Johor, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| NAPIC (JPPH) | Malaysia's official property statistics portal run by the government. | We used it to anchor Johor market context and avoid relying on listing hype. We treat it as the baseline for market-level data. |
| Global Property Guide | Long-running international property dataset with disclosed yield methodology. | We used it as a benchmark for gross yields in Johor Bahru and Iskandar Puteri. We cross-checked to avoid unrealistic yield claims. |
| AirDNA | Widely used short-term rental data provider with transparent metrics. | We used it to estimate STR occupancy and nightly rates for Johor Bahru. We computed realistic STR gross revenue before costs. |
| PropertyGuru | Malaysia's largest property portal used by local renters and agents. | We used it to triangulate asking rent bands by unit size and neighborhood. We sanity-checked demand hotspots by listing volume. |
| LHDN (Hasil) | Malaysia's official tax authority explaining tax treatment. | We used it to confirm non-residents are taxed at a flat rate on rental income. We shaped guidance for remote landlords. |
| Skrine Law Firm | Top-tier Malaysian law firm summarizing Federal Court decisions. | We used it to support the key Airbnb risk point about strata management bans. We translated court outcomes into investor implications. |
| Attorney General's Chambers | Official federal legislation database for Malaysia. | We used it to explain why condo rules can determine STR feasibility. We anchored statements about management bodies and house rules. |
| New Straits Times | Major national newspaper with clear attribution to named projects. | We used it to explain Johor's unique demand drivers like RTS and JS-SEZ. We linked rental hotspots to actual infrastructure catalysts. |
| iProperty | Major Malaysian property portal useful for cross-checking rents. | We used it to cross-check PropertyGuru asking rents and avoid portal bias. We confirmed high-rent pockets and typical unit mixes. |
| Airbtics | STR data provider with detailed revenue and occupancy metrics. | We used it to validate AirDNA figures and add depth to STR income estimates. We cross-referenced seasonality patterns. |
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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