Rules on Short-Term Rentals Vary in Malaysia

Diane Foo Eu Lynn19 Jan 2017

 

While home-sharing has gained popularity across the world thanks to websites like Airbnb which allow people to list or rent short-term lodging, different places in Malaysia have varying rules regarding this.

In the country’s capital, it appears there is no licence requirement for homestays or home-sharing, said an Airbnb host who asked not to be identified.

“It depends on the property manager of a residential building. They may prohibit home-sharing activities if they cause trouble to long-term residents living in the property,” he explained.

To verify, a spokesperson from Kuala Lumpur City Hall (DBKL) said: “As long as you’re using your flat for residential purposes (which includes rental), there is no need for you to apply for a business licence or permit”.

Similarly, there are currently no rules prohibiting short-term rentals in Petaling Jaya, said City Councillor Tang Fuie Koh. However, he warned that this does not mean that residents are allowed to do so.

When asked if home owners need to convert their land title from residential to commercial if they intend to lease their residences for either short-term or a long period of time, the Petaling Jaya City Council (MBPJ) councillor explained that this is not required unless it’s for commercial use, like homes for the elderly.

On the other hand, Penang has clamped down on short-term stays. Last July, the Penang Island City Council (MBPP) summoned landlords, after receiving complaints that they were leasing their premises for this purpose.

“From a legal point of view, short-term rental means operating an illegal lodging house without a lodging house licence issued by the local authority. Landlords or property owners who ignore notices from us for them to cease their unlicensed short-term rental activity will be issued summonses,” said a spokesman from the Environmental Health and Licensing Department.

He explained that the property owners violated two laws, namely the Town and Country Planning Act of 1976, and the Trades, Businesses and Industries By-Laws of 1991 by Municipal Council of Penang Island.

The properties appropriate for short-term stays are hotels, lodging house and serviced apartments, as their Certification of Completion and Compliance clearly expresses their usage, noted the spokesperson.

Hence, he advises landlords to verify the allowed uses for their properties in Penang from the local Planning Department before they engage in short-term rental.

Meanwhile, the Federal Government currently has no intention to regulate the home-sharing sector, according to a representative from the Urban Wellbeing, Housing and Local Government Ministry.

“The Tourism and Culture Ministry also has no jurisdiction over the matter,” added an officer from the agency.

 

Image sourced from zelletyasociados

 

Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my

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