Rental Deposit Insurance - The New Beginning or Malaysia

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In the rental environment, a security deposit, a traditional deposit is collected to protect the unit's owner against any damage caused by a renter. In case there is any damage to the property, the unit owner has the right to deduct the cost of repairs from the security deposit when the tenant moves out. In Malaysia, it usually involves 2.5 months' worth of basic rent. The rental deposit insurance service is completely new to the SEA region, while Malaysia is the first country to roll out this solution, it is still pretty new for most property investors, tenants, and property agents. 

Why Rental Deposit Insurance Is In The Market 

The rental deposit insurance is also called the zero deposit package in Malaysia or in some places like Germany. It started to roll out in Europe in 2017 or even earlier. These policies are available only at the beginning of a tenancy. Rental deposit insurance comes in package form and it depends on the total rental deposit to be covered, as well as the type of properties. Read more: BlueDuck Brochure 

What happens after the Landlord is Onboarded With BlueDuck Rental Deposit Insurance? 

A landlord can offer NO DEPOSIT as an alternative to speed up the rental process. With the new development happening, many tenants would often look for newer development and the landlord is struggling with the ongoing loan services and getting “THE” tenant. With Rental Deposit Insurance, the rental process is sped up as tenants do not have to fork out the initial upfront deposit while the landlord gets the rental income to ease their cash flow.  


Step 1: Go to, create a user account and add your property details

Step 2: Submit us the tenancy-related document upon confirmation of tenancy details.

Step 3: Rental Deposit Insurance is activated! The insurance Certificate is issued to the landlord and ready to be retrieved in your dedicated landlord logins in our BlueDuck portal.

What’s The Catch?

Before a tenant is onboard,  the tenant will need to get verified and qualified through our Tenant Profile.  A tenant’s profile will be verified with a supported credit check via CTOS, and ready to be qualified by the BlueDuck team to proceed with a 0 deposit upfront rental deal. 

Tenants also need to agree on the T&C which are:

1) Tenant is committed to allowing BD Pay to collect rental (Sign up a direct debit)

2) If the tenant runs away, their name will be registered in CTOS and no longer qualify for the BD packages in the future. 

3) With BD Pay to collect rental, 1% of the system fee will be collected. Eg: the rental is RM1,000, and the landlord receives RM990.

These will be supported by a declaration form to be signed by both tenant and landlord. Since a tenancy deal started with no deposit being collected, BlueDuck has implemented these ways to mitigate a landlord’s tenancy-related risks. This will eliminate the not-so-committed tenants and attract a committed tenant for the tenancy. 

So What’s Next? 

For landlords that are interested in this solution, register an account now on the BlueDuck website while your agent shall help you to post on the listings sites with “NO DEPOSIT REQUIRED” to attract tenants faster.  And.. you have begun the BlueDuck journey. For more, click the link here to get to know what BlueDuck has to offer, and check out our latest news on BlueDuck's FB Page today.

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